Cyprus Elections and Property in North Cyprus

Northern Cyprus is moving closer towards worldwide recognition and acceptance each month and as it moves closer, so the property market in North Cyprus develops, matures and heats up as confidence in it grows.The news announced today that President Papadopoulos has lost his re-election fight in south Cyprus is naturally bad news for him, but exceptionally good news for North Cyprus and all those with property assets and interests in the Turkish Republic of Northern Cyprus.

Because politics are complicated at the best of times and even more so when it comes to Cyprus where there is partial EU entry, partial isolation, an armed border post and highly emotive issues involved, we thought we’d have a stab at explaining how the south Cyprus elections may have a profound and positive impact on those with property in North Cyprus in this article in order to assist you.

Cyprus is an island divided between the Greek and Turkish Cypriots. In 2004 the entire island entered the EU but, following the Greek Cypriots’ refusal to agree to the Annan Plan for a reunification of the island and a solution to the isolation of the Turkish Cypriots, the EU body of common rights and obligations only applies to the Republic of Cyprus.

Since 2004 growing international pressure has been placed on the Greek Cypriots to once again return to the negotiating table to allow a solution to be found so that Turkey can negotiate past the impasse it faces relating to potential EU entry and Northern Cyprus can be recognised as an independent state and receive the likes of direct flights and open trade.

President Papadopoulos alone was seen as the number one obstacle for the restart of talks and against any progress being made. As stated, now that so much international pressure has been placed on Cyprus to move forward, 65% of the Greek Cypriots yesterday voted against their current president’s re-election and in favour of a solution to the Cyprus problem.

The remaining two candidates running in the election will go head to head at the final polling session on the 24th of February – and because all Greek Cypriots are obliged to vote, it will be decided who will lead the nation after next week. Both candidates are in favour of entering into re-negotiations to find a way forward.

Expert international political opinion is pretty much in agreement that the way forward will be for the Greek and Turkish administered areas to act independently of each other in the same way that they are now. This is also internationally acceptable. Of course, the time it takes to reach this agreement officially and get everything in place could represent a number of years…but, the fact that Cyprus is now so much closer to an agreement is exceptionally exciting news for those with property in North Cyprus.

Prior to the EU entry of Cyprus in 2004 there was a property boom in Northern Cyprus with speculators buying in ahead of what they believed was a solution to the Cyprus problem. But because President Papadopoulos stood in the way of this, the market since 2004 has been steady but not massively buoyant. Now that Northern Cyprus really is a step closer to direct flights, self rule, open trade, a thriving tourism market, significant inward foreign direct investment and a thriving property market – those who have already bought in are sitting very pretty indeed, and anyone who wants to make a potential killing still has at least a few months if not a year to get into the market and hold on to their assets.

When the Cyprus problem is resolved – which it will be – property prices in Northern Cyprus are likely to align themselves with those in the south where they are currently up to 2/3rds more expensive! How exciting!