Online property auctions are gaining momentum in Cyprus.
Despite all the problems, 2020 has been a successful year for platforms that sell housing under the virtual hammer.
Despite initial concerns about the uncertainty in the country due to the coronavirus pandemic, buyers are showing an unprecedented interest in online auctions that offer properties of various categories. Office premises are especially popular.
It should be noted that the overwhelming majority of bidders are Cypriots, who are in a hurry to take advantage of various government support programs. Many of them buy houses on credit under an interest rate subsidy scheme.
As you may know the scheme covers housing loans to individuals in Cyprus, the agreement for which was concluded from March 1, 2020 to June 30, 2021. The program can be used by those whose mortgage rate does not exceed 2.3%, and the loan size is 300 thousand euros. The subsidy is valid for 4 years and covers up to 1.5% of the rate. The plan is designed specifically for the purchase or construction of a primary home, including the purchase of a plot.
We must admit that the crisis affected people's ability to buy, but there were a significant number of those who survived the crisis and remained unharmed, and had money that they could invest in buying real estate or use it for loans.
As for online auctions, many buyers are attracted by the simplicity and convenience that such platforms offer, as well as their transparency. The final selling price of each asset is publicly displayed on the platform, which emphasizes the transparency of the entire process.
Online auctions provide bidders with flexibility in terms of time and place. It is easy to log into the site and participate in the auction, which helps the user to save time and money. Bidders do not need to be physically present at the auctions to take a digital tour of the properties.
By the way, people with money tend to invest it. And since there are no real alternative investment options in Cyprus, buying a property is the best solution.
Cypriots are undoubtedly the driving force behind online property sales in Cyprus.
95% of sales come from local residents. Usually these are young couples with saved up money or rich families.