Banks in Cyprus relatively recently handed out loans to everyone to buy a home, not really delving into the solvency of the borrowers.
Trying to attract as many new customers as possible, local financial institutions took risks. At the very first economic crisis, many borrowers began to refuse to service their loans, which led to the emergence of a mortgage real estate market in Cyprus.
Then local banks have become the largest home brokers and sellers in the country. Today they manage a huge portfolio of secured housing.
So in the first quarter of 2021, the Bank of Cyprus' Real Estate Management Unit (REMU) received 1,343 pledged real estate objects to pay off debts of €1.43 million.
Among them: 598 land plots, 262 golf courses, 237 offices and other commercial objects, 152 houses and apartments, 70 industrial buildings, 24 hotels.
According to the data released by the Bank of Cyprus, sales of mortgaged real estate are proceeding at a very slow pace. At the same time, all the attention of the Real Estate Management Unit (REMU) is now focused on the sale of collateral received as debt exchanges.
By the way, in the first quarter of 2021, REMU managed to sell dozens of secured housing properties for a total of 24 million euros, compared with 32 million euros in the fourth quarter of 2020 and 14 million euros in the first quarter of 2020. The total profit from the sale of mortgaged real estate for the year was 3 million euros. At the same time, 36% of the total sales fell on land plots.
During the first quarter, REMU was able to sign contracts for the sale of properties for €9 million (€53 million on December 31, 2020).
As you may know, t collateralized real estate is a type of real estate that is pledged (mortgaged) by the creditor bank or on its balance sheet after collection from the debtor.
These are mainly secondary housing, but there are a small number of offers and primary housing. Buying property in Cyprus from banks is a very good opportunity to save money. It's like a big sale of the housing market, where liquid apartments are sold at a reduced (sometimes up to 50%) price.
You can find profitable options in comfortable residential complexes with sea views or in central areas. If an urgent sale of objects is required, then the cost can be reduced up to 70%, but such offers are very quickly snapped up by local realtors.
It is profitable to purchase mortgaged housing for renting out. In addition, experienced investors are actively investing in objects of this type for resale.
Have you decided to buy an apartment or a house in Cyprus? Contact the DOM Real Estate Portal! The website has a large selection of real estate objects, both residential and commercial. Experienced agency specialists will be happy to help you make the right choice.