Investment Property in Northern Cyprus

The property market in Northern Cyprus has gone from strength to strength over the last five years and has reached a critical point today where confidence in the market is stable, making the annual gains sustainable.

This means that the real estate market now forms a strong part of the country’s economy and the government are keen to attract and support those looking to invest in property in North Cyprus.

The government listen to the recommendations of the real estate industry experts and have been known to adjust their policies to benefit the property market in the past.

Demand for investment property has soared since the Turkish Cypriot people voted ‘yes’ to peace when they voted in favour of the UN backed Annan Plan for the reunification of Cyprus in 2004. Since then North Cyprus has also benefited from international economic aid which has been ploughed into improving the infrastructure on the island which in turn adds to the country’s appeal.

Both private purchasers and property investors are set to benefit from the haven that is North Cyprus because both are attracted to the ever strengthening stability of island and its growing positive presence on the political world map...both are factors that experts predict will lead to a boom in property prices in Northern Cyprus over the medium to long term.

Property investors attracted to the island by the universal and timeless beauty of Cyprus have been drawn in ever increasing numbers to explore the Northern part of the island because the potential returns on property investment here are enormous, far outstripping potential gains on the South.

There has also been an influx of private property purchasers who are attracted to the island by the quality of life achievable and the affordability of quality housing in the North. It seems that Northern Cyprus offers the last affordable port in the Mediterranean Sea, and for the short term at least there are house bargains to be had.

Here are 10 more reasons why investment property in Northern Cyprus is attractive: -

1) Buyers can expect up to 320 days sunshine a year in North Cyprus, this means they can move to their new home and enjoy the world’s best climate or they can profit from their investment by renting it out for at least nine months of the year.

2) With the renovation, regeneration and new opening of Ercan airport, North Cyprus is now easily accessible from the UK and Europe. Furthermore, EU passport holders are free to cross the green line between the North and the South meaning property owners in the North can make use of airports and airlines in the South of the country as well.

3) Despite a boom in the property market which has of course led to a boom in the building going on in the North, the island retains it charm and beauty. The Turkish Cypriot government have strict planning and building regulation laws in place to restrict building on or close to beaches and areas of outstanding natural beauty. Furthermore, the Northern part of the island was fortunate enough to escape the concrete building boom of the 1970’s which saw every other beachfront across the Mediterranean region ruined with high-rise hotel blocks.

4) North Cyprus is not a commercial hub, it is a safe, quiet, relaxing, beautiful and unspoilt place to live or visit and it is attracting record increases of tourist numbers yearly. The rise in the numbers of visitors has led to an increase in demand for holiday rental accommodation which cannot currently be met - this offers property investors the chance to rent out their homes easily and for decent returns.

5) There is absolute faith among local and foreign residents that since North Cyprus accepted the terms of the Annan plan without argument it will in some way be reunited with South Cyprus and thus enter the EU as well. It is widely believed this reunification will result in the formation of two separate canton states and obviously this will further result in the worldwide recognition of North Cyprus and the promotion of the island as the last un-spoilt jewel in the Mediterranean crown.

6) Those who wait until this reunification takes place will likely miss out on the chance to purchase affordable property in Northern Cyprus. The market is artificially deflated because of the unique situation on the island, this situation will no longer exist when reunification occurs and demand for property will soar causing the biggest boom in prices so far. Prices will need to start by coming in line with those on the South where they are between 2 and 4 times higher, those who buy now will benefit from this boom.

7) Tourism will further boom, demand for rental property will increase, potential returns will be inflated, profits will soar. Clearly the market will level out after a time and remain strong as Cyprus is such a popular destination for sun-seeker tourists and those looking to move to a place in the sun.

8) Those who now move to or retire to Northern Cyprus enjoy a much higher standard of living than their UK peers. Even a UK state pension has much greater purchasing power here and retirees can move here secure in the knowledge that they will be living in a far safer and friendlier environment.

9) North Cyprus not only offers a haven for retirees seeking a peaceful and safe environment with decent and highly affordable health care services but it also attracts younger people and families seeking a place that can offer them a safer and healthier environment in which to live and raise children, and a place where employment opportunities are strong and foreigners are welcomed into the work place.

10) The government of North Cyprus actively encourage and promote the development of North Cyprus as an international fiscal and business centre. Therefore legislation is liberal and enterprise is welcome making North Cyprus an attractive prospect to anyone likely to benefit from the advantages offered from an offshore haven.