Productive Reunion Talks Fruitful For Cyprus Property

The tension surrounding the division of the island of Cyprus has been ongoing for many years but with both Turkish and Greek Cypriot leaders seeking a solution, it appears recent talks were reportedly ‘fruitful’ and ‘productive’ according to a UN envoy spokesperson overseeing discussions. With more talks set for Sept 18th this could well see movement on both sides and if successful the positive impact on the Cyprus property market could be momentous.

For those not up to speed on the situation, Cyprus is effectively two different political entities with the Turkish Cypriot settlers in the northern area of the Island conflicting with the Greek Cypriots in the southern area of the Island which has literally led to the island being ripped in two. The two entities are separated by a UN manned border which has been in place for some time and while there have been no major acts of aggression, there continues to be sporadic bouts of political jostling. The ability of the Island of Cyprus to pull together and reunite for the future sake of the Cypriot people has always been under discussion since its separation in 1974.

Previously attempts to broker a peace agreement have always fallen at the first hurdle, however the new ingredient to the situation seems to be newly elected Greek Cypriot President Demetris Christofias who has taken a more liberal view of the situation than that of his predecessor and Turkey’s desire for EU membership also feeding the momentum behind talks. It is hoped that Demetris Christofias and Turkish Cypriot leader Mehmet Ali Talat can at least make progress during the September talks.

Commenting on the ongoing talks and their potential impact on the future of Cyprus property, Chintan Mahida, overseas property expert at Nubricks.com believes,  “The signs are good, especially with news that a direct telephone line now running between their offices for the first time in history, a positive outcome to the talks could really put property in Cyprus on a level playing field with established markets such as Spain, France & Portugal.”

So what is is the implication for property in Cyprus ?

The market for property in the Turkish Republic of North Cyprus (TRNC) has been something of a black hole for certain property investors in North Cyprus with age old disputes regarding land ownership rights resulted in property sales being deemed illegal and ceased. The belief is that the property market of the TRNC, where property prices are between half and a third as expensive as those in the south, is primed to boom in parallel with the move towards reunification and could only have a further positive impact on prices in ‘southern’ Cyprus, whose EU membership, Euro adoption at the start of 2008 and favourable tax regime are already strong drivers for many investing in Cypriot real estate.

Many investors who have already invested in a property in Cyprus are awaiting the outcome of the situation with great interest!

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