The number of new residential properties put up for auction has increased significantly since Q2 2024, following a pause caused by changes in the property confiscation legislation at the end of 2023. According to the Central Bank of Cyprus, six residential properties priced below €350,000 and three properties with a market value above this amount were sold in Q2 2024.
All six properties priced up to €350,000 were sold at the first auction, and three more expensive properties were sold at the second auction. In the first quarter of 2024, no properties were sold at the first auction, and only one property priced over €350,000 was sold at the second auction.
As for new homes sold directly to third parties, the Central Bank data shows that one residential property priced below €350,000 was sold directly. In addition, ten properties were sold to mortgage lenders six months after the first auction, one of which had a market value of less than €350,000.
At the same time, auctions are ongoing for another 70 residential properties, of which 45 are valued below €350,000 and 24 above that amount. More than 450 owners of primary residential properties have received first notices of overdue loan payments exceeding 120 days, triggering foreclosure proceedings .
Contents
€500 million in claims
In the second quarter of 2024, 2,794 foreclosure notices were issued for properties worth around €500 million, compared with 2,968 notices in the first quarter for properties worth €246 million. There has been an increase in the number of notices that banks and credit card companies are sending to borrowers who are more than 120 days overdue. This is usually followed by a second notice stating the amount owed, interest and other costs, giving the borrower around 30 days to repay the debt.
The second quarter saw a slight decline in the number of re-notices setting a date for a property auction . These notices are issued when a borrower is unable to repay a debt.
Increase in the number of auctions for primary residential properties
According to the Central Bank, 462 foreclosure notices were issued on new residential properties in the second quarter of 2024. The number of first notices doubled, with 146 properties valued at €33 million receiving notices, compared to 82 properties valued at €13.3 million in the previous period. Of these, 133 properties were valued at less than €350,000, while 13 were valued at more.
Low interest in out-of-court settlements
Financial Commissioner Valentina Georgiadou noted that few borrowers had applied for assistance since the new law was passed in late 2023. Only eight cases had been filed, none of which had been heard due to pending court cases. Although the law provides for the creation of a Special Recovery Court to hear cases involving properties worth up to €350,000, the court has not yet been established.
Increase in complaints from borrowers
Borrowers Association director Jenny Papacharalambous said the number of requests for help continued to rise, particularly for issues related to primary homes, with more than 20 cases per week. Primary Property Protection Association president Michalis Paraskevas expressed dissatisfaction with the lack of progress in the judicial system, noting the inconsistency of decisions in similar cases.
