A Guide to Northern Cyprus Property Investment
The Turkish controlled northern third of the island of Cyprus is blessed with many of the most stunning beaches and much of the best natural scenery found on the entire sun-drenched Mediterranean island of Cyprus. What’s more, because Northern Cyprus was effectively completely cut off from the rest of the world between 1974 and 2004 when the whole island entered the EU*, the northern third of Cyprus has remained largely unspoiled and untouched in many respects.
What this means for property investors, holidaymakers, retirees and expatriates alike is that the landscape is perfectly ripe and ready for closer inspection - which is why there is a construction boom ongoing in North Cyprus, why there is a rapidly expanding population fulled by both professional classes and retirees from international backgrounds, and why North Cyprus is one of the most interesting and attractive emerging real estate markets in Europe at the moment.
At Nubricks.com we would highlight the following ten specific factors as driving interest and potential in the property market in Northern Cyprus currently:-
1) Northern Cyprus is the Last Affordable and Undersold Property Market in the Mediterranean
It pretty much goes without saying that the inimitable lure of the Mediterranean region with holidaymakers the whole world over has meant that every other coastline that brushes the Mediterranean Sea has been overbought, oversold, overdeveloped or overpriced and that the Northern Cyprus Mediterranean coastline is the last untouched, unspoiled, underdeveloped and affordable place that you can buy property.
This is leading to unprecedented levels of interest from international developers, property investors and individual buyers alike. Just think if you could have bought property in Spain thirty years ago before it became such a popular and accessible location, what a goldmine you’d be sitting on today…well, Northern Cyprus is Spain thirty years ago. It’s a unique Mediterranean market offering inimitable potential which is why it is so popular with property investors.
2) Improving Accessibility Will Open Skies and Tourism Market Meaning Great Opportunity for Investors in Property in Northern Cyprus
Currently Northern Cyprus is not permitted to have direct flights, what this means is that airlines fly via Turkey, touching down on the mainland before flying on to Ercan International Airport near Nicosia in North Cyprus. There are constant and relentless campaigns in British, European and International political circles to end this effective isolation of North Cyprus and it is predicted that in the short to medium term there will be no arguments left for keeping North Cyprus cut off in this way. Ready for the massive influx in flight operators and holidaymakers the northern third of the island will inevitably attract at that time, the government has invested heavily into the complete refurbishment and upgrading of Ercan International Airport.
Additionally, it is now becoming better known that it is easy to take a cheap flight to Larnaca or Paphos airports in southern Cyprus and hire a car or get a taxi to travel to Northern Cyprus. The main border crossings are open 24/7 365 days of the year. There are regular scheduled ferry routes between the Northern Cypriot ports in Girne (Kyrenia) and Gazimagusa (Famagusta) too, and all in all Northern Cyprus is becoming increasingly accessible and more affordably so too.
When the air isolation ends this will be a massive boost for the island. Property investors are well aware of all of these facts and they are buying in now while the imperfect travel situation keeps prices low. Savvy investors know this state will not remain and prices will rise dramatically when Northern Cyprus gets direct flights.
3) Strict Building Restrictions and Estate Agency Laws Now Being Introduced to Protect Buyers of Property in Northern Cyprus
The construction boom that began in Northern Cyprus back in 2004 caught the government off guard and it has since been working to implement regulations for the estate agency and construction industries and to implement restrictions specifically on the development of land in Northern Cyprus.
The island received criticism early on for failing to prevent ugly construction but it has since had a major crackdown on the building industry forcing strict planning controls to come into force to protect the natural attraction of the island. In addition to this the estate agency business in Northern Cyprus is currently undergoing reforms to ensure agents operate strictly within the law, and all of this tightening of legislation pertaining to the property industry means that it is now safer and more attractive for investors to enter the marketplace.
4) The Landscape in Northern Cyprus Remains Unspoilt and Attractive Making an Investment of Lasting Appeal
Some emerging markets in the past have allowed for the effective destruction of the attraction of the location for the sake of the property industry meaning that ultimately, the real estate market has little of appeal to lure new investors into it in th end. Northern Cyprus has learned from the mistakes of other emerging markets and the government and people are committed to protecting the island’s natural appeal so that it stays an attractive location to live and holiday in ensuring a continuous and continuing stream of interest in the property and tourism markets. For a real estate investor this means that any properties bought in Northern Cyprus should retain their underlying appeal.
5) An End to the Cyprus Problem Would Result in Massive Property Price Appreciation in Northern Cyprus Giving Speculators an Exciting Opportunity
Turkey wants to enter the EU and southern Cyprus wants to become a more active member of the Union and it is dependent upon these two nations that the Cyprus Problem (i.e., the division of the island) is resolved. There is immense international pressure on both sides of Cyprus to reach a compromise based solution where the island effectively remains divided politically but where Turkish Cypriots in Northern Cyprus are no longer isolated. Sagacious investors are clearly well aware that such a resolution to the Cyprus Problem would result in masses of FDI entering Northern Cyprus and that there would be a dramatic surge in the underlying value of every single piece of real estate in Northern Cyprus which is why many investors are simply land and property banking in the north for as long as it takes for a resolution to be be made.
6) Property Prices Remain Attractively Affordable but Timing is of the Essence in Northern Cyprus
The prices of land and real estate are up to a half or a third cheaper in Northern Cyprus than they are in Southern Cyprus and cheaper than real estate across the Mediterranean region because of the Cyprus Problem and the fact there are no direct flights to Northern Cyprus – however, because there is massive and unrelenting international pressure to solve the situation on the island, many developers and property investors are banking on capital appreciation and buying in now ahead of any substantial prices rises.
Investors who want to take this approach offset the risk by the potential gains they expect to witness. After all, how could it be that following a resolution prices for real estate on one side of a tiny island are a half to a third cheaper than on the other side?
7) The Climate and Natural Appeal are Supporting a Fledgling yet Rapidly Advancing Tourism Industry Making Buy to Let Property Investment of Interest in Northern Cyprus
Investors in real estate in Northern Cyprus can expect to witness up to 320 days sunshine a year meaning they can profit from their investment by renting it out for at least nine months of the year. Tourism is already annually increasing in Northern Cyprus and as the wider world learns about the beauty of the nation so demand for rental property will increase, potential returns will be inflated and profits will soar. It’s likely that following strong growth years the tourism market will level out after a time but it will always remain strong because Cyprus is such a popular destination for sun-seeker tourists and those looking to move to a place in the sun – this means an investor has an exit strategy and income generation method practically guaranteed for the long term by buying real estate in Northern Cyprus.
8) The Cost of Living in Northern Cyprus is Low Attracting More Retirees Which Presents a Property Investor with Opportunity
Northern Cyprus is becoming a retiree’s retirement destination of choice because not only is property affordable but the day to day living costs are as well. Many retirees find that their pension income goes far further in the north and so as word spreads about the fantastic properties for sale, the stunning landscape and the ever growing population, so an investor can target developments or single purchases well to sell on as resale stock to this market demand.
9) The Standard of Living in Northern Cyprus is Improving as is the Employment Landscape Which is Attracting Professionals and Families
Other than a MacDonalds there is nothing you cannot get in Northern Cyprus such is the sophistication of this emerging market. There are three international schools, new businesses opening daily specifically to target the increasing tourism market, and families and professionals are finding there is opportunity in Northern Cyprus aplenty. This means that the population is expanding, affordability is increasing, demand for property is expanding and the market can internally support price rises and this bodes exceptionally well for those seeking a profitable return on their Northern Cyprus property asset in the short to medium term.
10) Forward Thinking and Dynamic Government Encouraging Investment in North Cyprus
The government of the Turkish Republic of Northern Cyprus is a democratically elected body and the current government is actively encouraging and promoting the development of North Cyprus as an international fiscal and business centre. Therefore legislation is liberal and enterprise is welcome making Northern Cyprus an attractive prospect many property investors.
* according to the CIA: “The entire island entered the EU on 1 May 2004”
