Recent figures from the Central Bank of Cyprus point to a sharp rise in the number of primary residences valued below €350,000 being sold at auction, underlining mounting pressure on middle-income households at risk of losing their homes.
Confidential quarterly data submitted to the House of Representatives and obtained by StockWatch show a growing share of non-performing loans tied to first homes in this price bracket are now ending in foreclosure.
Suspension lifted, auction numbers climb
The trend appears to have intensified since early 2024, when the suspension on foreclosures of primary residences valued up to €350,000 was lifted following earlier legislative and executive pressure.
According to Central Bank data, 98 primary residences were auctioned in the third quarter of 2025. Of these, 93 were valued below €350,000, while just five exceeded that figure.
From the 93 lower-value homes:
- 16 were sold to third parties
- 77 were acquired by the mortgage lender six months after the first auction process concluded
Among the 16 homes sold to third parties, eight were disposed of following a failed first auction, four at the first auction and four at the second. Of the five higher-value homes, four were taken over by the mortgage lender and one sold at first auction.
By comparison, in the third quarter of 2024 only five primary residences were sold at auction, rising to six in the fourth quarter. The latest figures therefore represent a more than twofold annual increase.
Over 800 homes on track for auction
As of Q3 2025 (July–September), more than 800 primary residences were in the foreclosure pipeline, the majority valued under €350,000. Representatives of affected borrowers say the figure continues to rise month by month.
During the same quarter, auction-stage notifications (Type IA notices) were issued for:
- 174 properties under €350,000
- 34 properties above €350,000
Under the Transfer and Mortgage of Immovable Property Law, a Type IA notice sets the date, time and place of the public auction and must be served at least 30 days prior to sale.
In total, 731 borrowers with homes under €350,000 and 81 borrowers with higher-value properties received notices at various foreclosure stages during the quarter.
Earlier-stage Type I notices, which signal intent to sell and granting a 45-day repayment window, were served on 388 borrowers with properties under €350,000 and 32 with higher-value homes.
Meanwhile, 167 borrowers with homes under €350,000 and 15 above that threshold received Type Theta notices, marking loan arrears exceeding 120 days and triggering the initial foreclosure phase. From this stage, the process to auction typically spans four to six months, though legal objections and restructuring efforts can slow proceedings.
Political scramble ahead of elections
Legislation passed in late 2023 providing for a specialised court jurisdiction to hear foreclosure cases remains inactive. At the same time, the remit of the Financial Ombudsman was expanded to allow more borrowers to seek out-of-court restructuring, although decisions are not binding.
With parliamentary elections approaching, MPs are calling for a temporary freeze on foreclosures while new regulations are explored in cooperation with the government. Around 30 legislative proposals are set to be discussed before the House Finance Committee on 9 March, in the presence of the Finance Minister and the Central Bank Governor.
Based on the latest data, however, the foreclosure wave appears to be gathering pace rather than easing – signalling a critical juncture for Cyprus’ mid-market housing segment.
