K. Onisiforou, BIDX1: Online auctions are a popular choice | Stockwatch

Online auctions are now a popular choice for buyers and sellers in Cyprus, says BidX1 Cyprus property manager Kritonas Onisiforou.

In an interview with StockWatch, he says that “at our previous auction, over 80 bidders participated, raising almost €3.5 million from the sale of 26 properties in a single day.”

“In general, since January 2020, offers of €120 million have been placed on the platform during our auctions, which proves the increased demand for the goods we offer and the confidence of people interested in our approach.

“The public is increasingly looking for a more flexible, accessible and transparent way to buy and sell real estate,” he points out.

He points out that the pandemic has exposed the limits and shortcomings of traditional models of buying and selling real estate.

He added that real estate remained an attractive option for investors and that online media was vital during the pandemic as outdoor travel was restricted.

According to Mr. Onisiforou, if over time the cash loses its value and given the negative interest rates in large savings, the purchase of real estate is a reasonable investment.

“Property values ​​tend to fluctuate with inflation and are more profitable investments than other options in times of high inflation,” he said.

The head of BIDX1 says residential real estate remains the most popular investment. Demand was high for both houses and apartments, especially after the government’s interest rate subsidy program where those interested can benefit from a loan interest rate of 1.5% for 4 years.

There was also a particular interest in commercial real estate and agricultural land. Regarding the bidders, he notes that more than 95% of the bidders on the platform are Cypriots or have their headquarters here on the island, which proves that Cypriots now want a more transparent, efficient and accessible method of buying property.

BIDX1 has over 50 commercial and residential properties on the platform for the current month. So far he has held 6 auctions. The December 15 auction will be the last of the year.

Are you satisfied with the results of online auctions?

We are delighted that this is becoming a popular option for buyers and sellers in Cyprus. At our last auction alone, over 80 bidders took part, with 26 properties sold that day, raising almost €3.5 million.

To get a broader overview, since January 2020 we have seen over €120m in bids placed on the platform at our Cypriot auctions – a clear indicator of demand for the assets we offer on the platform and people’s confidence in our process. The public is increasingly looking for a more flexible, accessible and transparent way to buy and sell property; our model offers such advantages, hence its growing popularity.

What types of assets are the most popular right now?

Residential real estate continues to be the most popular investment option. Demand was very strong for houses and apartments, in particular following the government’s decision to launch its housing assistance program which allows interested parties to benefit from a mortgage rate of 1.5%.

Rising rents have also played a role in boosting demand for these assets – people are looking to buy their own house or apartment rather than paying high rents to a landlord, especially with historically low borrowing costs. that we currently know.

It is clear that the supply-demand dynamics for mid-range housing (those priced around €100,000 – €200,000) and for residential land below €250,000 in the main urban centers will remain favorable. .

What kind of interest do you see in commercial real estate?

Recently, we’ve seen an increase in demand for retail and farmland – residential real estate isn’t the city’s only draw.

The most popular agricultural land is fields accessible from a registered road, as well as access to key services such as electricity/water. Obviously, more distant locations tend to attract fewer bidders.

Are the interested parties Cypriots or foreign investors?

Over 95% of those who have bid for a Cyprus property on the platform over the past two years have been based here in Cyprus. Most of our bidders are Cypriot, indicating that people have welcomed a more transparent, efficient and accessible method of buying property.

When we launched here in 2019, BidX1 was already a brand overseas, having pioneered online auctions in various markets, but was relatively unknown in Cyprus.

Despite this, it was clear from our earliest days that Cypriots had embraced the model. Our first two auctions were proof of this; over 500 bidders registered to participate, with over 100 properties sold over the two days.

When can we expect the next online auction?

Our next auction will be on the 15thand December, but interested persons can view the catalog in advance on the BidX1 platform, where they can also register to participate in the auction.

How many auctions took place in 2021?

So far we have held 6 auctions. The 15thand The December auction will be our last of the year.

How many properties does BidX1 currently have available for sale?

We have over 50 commercial and residential properties in Cyprus available on our platform this month.

What are the trends in real estate sales following confinement?

We were delighted that our digital approach to property sales enabled us to continue negotiating throughout the lockdown; real estate remained an attractive option for investors and online channels were crucial during this time as travel was so restricted. Post-lockdown, houses, apartments and residential land were the most searched asset types on our platform – a trend that is expected to continue.

What is the outlook for real estate following the pandemic?

Cash loses value over time, and with negative interest rates on savings, an investment in real estate is a smart move. Real estate values ​​tend to move with the rate of inflation over time and can provide a safer investment than other options in times of high inflation.

On a broader level, the pandemic has also exposed the limitations and inefficiencies of traditional real estate models. I think online sales will become more mainstream, driven by the obvious benefits for buyers and sellers.

A drive for greater transparency also comes into play here. At BidX1, our technology is a key enabler for such transparency; we reduce the risk of failed sales by providing buyers with all relevant information in advance, including all legal documentation, which can be viewed directly on our platform.

Potential buyers can pre-check before bidding, and they can also see all real-time auctions on auction day, as well as the final sale price.