Primary residences sold at auction by lenders in the final quarter of 2024 fetched prices significantly below their market value, according to Central Bank of Cyprus data obtained by Phileleftheros.
Six primary residences sold during first and second round auctions between October and December 2024 had a combined market value of €1.2 million but were purchased for just €878,000 – 26.7 per cent less than their worth.
Four of these properties were valued below €350,000 each, while two had market values significantly exceeding €350,000, the data shows.
The four primary residences sold during first-round auctions had a total market value of €381,000 but sold for €357,000, with an average sale price of €90,000 per property.
The two homes sold at second-round auctions had a combined market value of €805,000 but fetched only €521,000, averaging €260,000 each.
By comparison, five primary residences sold at auction during the third quarter of 2024 had a market value of €1.2 million but sold for €862,000.
Under Cyprus law, the minimum acceptable price in first-round auctions is set at 80 per cent of the estimated market value. If properties remain unsold, this can be reduced to 50 per cent after 12 months.
Despite enhanced legal protections for borrowers introduced a year ago, which expanded the Financial Ombudsman’s authority, many borrowers are not utilising the new framework.
The Financial Ombudsman can assist borrowers with initial loans up to €350,000 secured against a primary residence or business premises valued up to €350,000 by appointing a mediator to resolve disputes with creditors and prevent property auctions.
During the same period, lenders sent 530 letters to borrowers warning that their primary residences would be auctioned, including 495 homes valued below €350,000 and 35 valued above this threshold.
Additionally, 282 formal auction notices (Type IA) were served, setting specific dates for the foreclosure sales, with 235 for properties worth less than €350,000 and 47 for properties exceeding this value.
Three properties were sold to third parties after failed first-round auctions, while mortgage lenders purchased 27 primary residences six months after completing first-round auctions.
The Central Bank data indicates that by the end of 2024, a total of 239 mortgaged properties (including primary residences) worth €22.9 million were auctioned, compared to 186 properties worth €32.6 million in the third quarter of 2024.
Among successfully auctioned properties in first-round procedures were 45 apartments and houses under construction valued at €7.5 million, 18 commercial properties including offices, shops, factories and livestock facilities worth €1.8 million, 12 building plots valued at €1.9 million, and 117 agricultural plots worth €3.4 million.
In second-round auctions, 41 properties were sold, including 10 residences worth €1.7 million, seven commercial properties worth €2.3 million, three building plots valued at €781,000, and 17 agricultural plots worth €1.7 million.
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