Real estate in North Cyprus has been beginning to boom since 2004 when the
citizens of the TRNC voted yes to the Annan Plan and yes to the peaceful
reunification of Cyprus and were immediately rewarded with EU aid and an
increase in foreign direct investment.
Since 2004 property investment into Northern Cyprus has been freer flowing and
consistent, and the amount of money spent by the government on infrastructure
and amenity improvement and development has been impressive. All indicators
point to a long term upward trend in real estate prices in North Cyprus.
In terms of the real estate investment opportunities currently available in
North Cyprus they range in size and type from an off plan residential apartment
for sale from GBP 50,000 to a 400 berth marina requiring investment of in excess
of GBP 90 million. The majority of investors are seeking residential properties
to purchase off plan for both capital appreciation and rental yield.
The demand for property to let is strongest in the tourism sector and now that
various UK based tour operators such as Going Places have agreed to showcase
TRNC brochures and the city of London is advertising North Cyprus on buses and
in underground stations the profile of this stunning Mediterranean destination
is becoming more widely known. This will push up tourism numbers which have
already been creeping up annually for the past five years and should equate to
an intensification of demand for short term villa and apartment rental from
which a real estate investor could profit.
Northern Cyprus also has five major universities which are receiving investment
from America and the Middle East and all of which have expanded their student
numbers in 2005. Students require accommodation and the amount of campus based
student accommodation is restricted - this presents both the residential and
commercial real estate investor with opportunity and potential.
Other commercial ventures requiring investment include the aforementioned 400
berth marina which also has planning permission to incorporate a 5 star hotel
and casino as well as waterfront villas and apartments within the entire
development in Esentepe east of Northern Cyprus’s main resort town of Kyrenia
(Girne). There are also smaller ventures requiring investment in North Cyprus
such as the Ottoman Palace hotel in Girne.
Real estate investors have such choice and opportunity for growth and strong
yield in North Cyprus it is no wonder that the Turkish Republic of Northern
Cyprus is receiving such intense worldwide media interest and that the numbers
of those traveling to the country to explore investment opportunities is at an
all time high.
The island of Cyprus is quite an amazing anomaly - it is unarguably one of the
most beautiful places in the whole world in which to live - the cost of living
is low, the pace of life is slow, there are job opportunities, retirement
communities, the climate is perfect and it’s on the Mediterranean Sea - and yet
because it remains divided to this day as a result of a long running dispute
between the Greek and Turkish Cypriots, one entire third of the island remains
totally unexplored and undiscovered.
But all that is beginning to change...and it might just be that the time is
right - yes, right now - to invest in property in Northern Cyprus. Here are just
five reasons why now could be the moment to strike.
It’s a Buyer’s Market
Right now Northern Cyprus is on the very verge of emerging from the black cloud
of embargos and oppression that it’s suffered under since 1974; a few direct
flights to the island have tested the waters (or skies) and have paved the way
for regular direct flights to the US and UK and the Turkish Cypriot people have
begun to see and enjoy the potential of their island.
As a result of all of this and the UN’s continued and unrelenting pressure on
the Greek Cypriots to make a peaceful resolution with their Turkish Cypriot
neighbours, property development has begun in earnest in Northern Cyprus.
But right now there are not the right numbers of buyers coming to the North to
buy the properties being built. Yes the market is buoyant but it isn’t yet as
buoyant as it could be and supply is outstripping demand which can only mean one
thing - it is most definitely a buyer’s market right now.
If you were wondering whether now was the right time to invest in property in
Northern Cyprus then it probably is because you will have the power to negotiate
with the developers, builders and estate agents and you MAY get fees reduced,
get extras thrown in and maybe even get the overall price of your dream home
discounted a little...you never know your luck!
Don’t Risk Being Priced Out
If you can ‘just’ afford to buy now know that in 12 - 18 months time, unless
your circumstances change, you will no longer be in a position to invest in
property in Northern Cyprus as all indications point to a rising market where
prices which are already edging up are about to boom.
If you’re considering buying a property in the North you should make your mind
up quickly - don’t miss out on an opportunity if you don’t have to.
Obvious Capital Growth Potential
With property prices in South Cyprus up to 4 times more expensive when you
compare like for like with the North there is obvious room for massive capital
growth potential from property in Northern Cyprus when the island reaches a
resolution point. There is also room for yet more and sustained capital growth
potential in the South as prices there are not yet on a par with those in the
other dream Mediterranean destinations in Spain and Portugal for example. As the
South comes in line with Spain and Portugal and the North comes in line with the
South you can just begin to see quite how much room there is for capital growth
via equity from the right properties bought now in Northern Cyprus.
Rental Yield
As Northern Cyprus gets more direct ferry services from Tasucu and Alanya in
Turkey and more flights into Ercan each year, and now that visitors from other
EU countries can use airports in South Cyprus when coming to visit Northern
Cyprus, the appeal of TRNC intensifies. The easing of accessibility and the fact
that a number of the large British tour operators are reputedly poised to begin
business in Northern Cyprus all point to the fact that the tourism market is
also about to grow and then boom.
This means that there will be a demand for quality villa and apartment rental in
Northern Cyprus for at least six months of the year.
The fact that the Northern third of the island is also home to 5 universities
means that there is demand for student accommodation particularly in Kyrenia
(Girne) and Nicosia (Lefkosia) as well, and this is an option for anyone
considering buying specifically to let out all year round.
Investor Confidence Boost
The fact that it was reported in the press this week in Northern Cyprus that
plans have been submitted by major investors from the likes of Dubai, UK,
Israel, Belgium and Ireland for golf courses, marinas, spa resorts and water fun
parks (yes, all plural) in North Cyprus, this means that serious international
investors are confident in the market in Northern Cyprus and sure of the long
term potential of the entire island - therefore, if it’s good enough for them it
might just mean it’s good enough for you to invest in property in Northern
Cyprus right now too!
Words of Warning
Before you make any investment - particularly one in real estate - you have to
be 100% comfortable with the decision. Because of the unique situation with
title deeds and exchange land in Northern Cyprus it is essential to seek
independent legal advice in North Cyprus before making a firm offer, signing a
preliminary contract and of course before parting with any funds. You must
ensure that the properties you’re considering are legally owned by the vendor,
that he has the right to sell to you, that the property is free of any
mortgages, debts or legal problems.