Northern Cyprus: An Ideal Location for Property Investments

Northern Cyprus: An Ideal Location for Property Investments

Northern Cyprus (officially, the Turkish Republic of Northern Cyprus, TRNC) is an unrecognized republic that differs greatly from the southern part of the island inhabited mostly by Greeks. This is a resort area that attracts tourists and investors from different parts of the world. The number of villas and apartments in the TRNC sold for foreign buyers is rapidly growing, which indicates that this investment option is worth considering.

Buying a house or property in Cyprus offers the opportunity to own a piece of paradise in the Mediterranean. From beachfront villas to mountain retreats, Cyprus provides a range of options for property buyers seeking a relaxed lifestyle or investment opportunities. Working with local real estate agents and legal advisors can help navigate the buying process and ensure a successful property purchase in Cyprus.

The present state of affairs in the TRNC real estate market

Everything is growing at a rapid pace in the real estate market in Northern Cyprus: more residential complexes are erected, new infrastructural objects are built, the number of foreign investors into property is growing, and the prices are increasing. Those who bought property in Northern Cyprus some 6 to 7 years ago, now sell it for approximately 200% - 250% of the original price. The tendency is expected to continue and this fact attracts forward-looking investors to northern Cyprus.

Other factors contributing to the growth of interest to the TRNC are the investor-friendly policies, low investment risks, a high level of personal security in the jurisdiction, affordable prices both for modest apartments and for luxury villas.

In response to the interest on the part of the buyers, the construction companies are becoming more and more energetic. The developers do their best to meet the demands of the investors: they are paying better attention to the quality of their residential accommodations and the design of the apartments. Today, many of them offer attractive turnkey solutions. The fact that there are not too many land plots that can serve as construction sites in TRNC also pushes the prices up.

Prices for residential accommodations in Northern Cyprus

Apartments in Northern Cyprus do not cost very much. A 50-70 m2 apartment in a residential complex under construction in Famagusta, Kyrenia, or Esentepe costs 80,000–140,000 € on average. The price for a villa under construction is 200,000–400,000 €. You have to realize that these are the prices for property under construction.

A spacious apartment of 80-100 m2 costs about 150,000–180,000 €. Seaside property is expectedly more expensive because it promises a faster (and higher) return on investment.

Because the prices are so attractive, foreign investors have to compete for the best offers. The buyer who was the first to transfer money to the developer’s bank account becomes the owner of a liquid piece of property.

Advantages of investing into property in Northern Cyprus

Real estate in Northern Cyprus attracts a growing number of foreign investors. Here is why:

  • There are 300 sunny days in the TRNC.
  • Picturesque sandy beaches and clear azure Mediterranean Sea.
  • Excellent environmental conditions.
  • Low crime rates.
  • Reasonable prices for accommodation.
  • Healthy food products.
  • Mediterranean lifestyle.
  • Rather low taxes.
  • Not too much interest in the sources of income on the part of the local authorities.

Advantages of investing in Northern Cyprus in more detail

  1. Favorable currency exchange rates

You can pay for residential accommodations in the TRNC in any currency but if you bring British pounds, you will find the most favorable exchange rate in Northern Cyprus. If you pay in pounds sterling, your apartment is going to work out less expensive.

  1. Low risks of economic turmoil

The TRNC is an unrecognized republic and large international banks have been keeping away from financing the local development companies. For this reason, the TRNC can be referred to as a zone free from recession. Even in the times of a global political and economic crisis, the economy of Northern Cyprus is growing at a steady pace. A good return on investment is almost guaranteed if you buy property in the TRNC.

  1. Britain's colonial legacy

Europeans had been investing in Cyprus for a few dozen years. The island used to be a British colony and you can feel a spirit of the colonial past even now. English is an official language, the traffic is left-handed, the street signs are in English and Turkish, there is an Anglican church, and a number of beautiful old buildings. The British pound is the most popular unofficial currency in Northern Cyprus.

  1. Beneficial rent opportunities

Buying an apartment in a nice residential complex can bring you a source of a stable passive income if you decide to let the apartment on a lease. The good news is that all residential complexes are nice or superb in the TRNC. Many developers offer a guaranteed income from rent to the buyers of apartments. They may offer you between 6% and 12% of the prices of the apartment per year, which is considerably higher than in many other European countries.

  1. Good atmosphere

You will find peace and quiet and friendly locals in the TRNC.

  1. Personal security

Northern Cyprus is among the safest countries whose population is less than 5 million people. It is as safe as Iceland, Luxembourg, and Malta, according to the statistics.

  1. Affordable property prices

You don’t have to invest millions to buy property in the TRNC. Without doubt, there are premium accommodations there but even their prices look rather affordable.

  1. Opportunity to gain a fast return on investment

If you buy off-plan property, you will be able to sell it with a 50% profit when the construction work is completed.

  1. High quality education

Britain has left behind great universities in Northern Cyprus. The tuition fees are low and the diplomas are recognized in most countries.

  1. Simple conditions for relocation

Northern Cyprus offers a very simple legal residence program.

Investment process

An important factor that you have to take into account is the choice of the district in Northern Cyprus where you want to buy property. Famagusta, Kyrenia, Lefkosa, Guzelyurt, and Iskele are the most popular districts and each of them has particular characteristics and offers particular advantages.

After you have chosen the district, the realtor, and the developer, you can start the investment process. Normally, it will contain the following steps:

  1. Choose possible investment objects with the realtor’s help.
  2. Take a trip to Northern Cyprus to see the property. Three or four days should be enough.
  3. Negotiate the terms of sale. The real estate agency will have to make sure that all the property documents are in good order.
  4. Pay the initial deposit and sign a contract with the seller. The deposit will signal to the seller that you are serious about buying residential accommodations in Northern Cyprus. The contract can be written in English and your native language if necessary.
  5. Register the property rights. The contract has to be registered with the Cadastral Chamber where the property will be written in your name.

You can go through all the stages remotely, including taking a virtual tour of the property.

The small jurisdiction of Northern Cyprus is growing in popularity with foreign investors as the recent statistics clearly shows. It’s a wonderful opportunity for those who would like to purchase liquid property in a secure and beautiful place at a low price and with a guarantee of a good return on investment.