Buying Property in Cyprus: How Do Online Auctions Work?

Since 2019, online auctions have begun in Cyprus, where you can buy real estate at discounted prices. Objects that are collateralized property revoked from borrowers due to non-payment of loan obligations are displayed typically showcased there. These can be apartments, houses, plots, or even farmlands.

Initially, such a program was launched as a demand from international creditors in Cyprus. But later it was supported by the main banking institutions of the country. It turned out to be quite profitable for them to sell such property, making up for losses from unserved debts. As a result, the auctions were able to strengthen the banking system of Cyprus.

Features of participation in the auction

Trades are carried out using a special electronic auction system. This is the main resource used by the majority of those wishing to acquire real estate in Cyprus. However, you can use private services if you wish. For a person to be able to access the auction, he must be a citizen of Cyprus or the European Union.  Legal entities officially registered on the territory of the country can also participate in the auction.

Buying real estate at such an auction has many advantages. The main one is the opportunity to acquire a great object for a penny if it turns out to be uninteresting for other participants. Usually such lucrative deals can be concluded by those wishing to buy territories located far from the central regions and coastal zones.

However, it is worth remembering about a number of nuances that bidders will have to face:

• A potential buyer cannot inspect the object of interest before the start of the auction. You can get acquainted only with the description and characteristics of the desire object.
• Buyers do not always have the opportunity to assess the real cost of an apartment, house, etc. Banks themselves name the starting price. Given that these entities may have a desire to enrich themselves in such tenders, the initial prices are often overpriced. As a result, the concluded deals in fact cast doubt on their profitability.
• There are situations when the main place of residence of the borrower acts as the collateral. However, practice shows that it is not always possible to resolve this issue quickly. It is also worth paying attention to the fact that in the near future a law may be adopted in the country that does not allow banks to take away housing if it is the only real estate of the borrower, and he lives there.

However, the presence of all these shortcomings cannot be called a rule. In most cases, bidders still manage to become the owners of the desired objects at a price that suits them.