Non-Cypriot European investment in real estate in Northern Cyprus has been doing for many decades. Ever since the British took over as the colonial rulers of Cyprus in the 1890s! The British stamp in Cyprus is still unmissable: Cars drive on the left, and English is the official language. All the road and street signs are in English as well as Turkish (in the north). There is generally a charming ex-colonial atmosphere at every turn from the local Anglican Church to the legacy of charming former colonial buildings. The pound sterling is the unofficial international currency of the British pound. And all shops and restaurants and all properties are priced in pounds sterling.
Since the large international banks were not involved in lending money to the developers who build new properties in North Cyprus. Unusually, the TRNC is a “recession-free zone” and there has instead been slow yet steady growth a rare thing in the general European area. In addition, since the collapse in the South of Cyprus of the Greek Cypriot economy and banking system over the last few years, many investors who had previously only considered a property purchase in the European South, are now heading North to the more stable, non-euro-zone area. And where the cost of living is low as well as the property prices!
Today, modern North Cyprus is now seen as a booming, emerging market for property and other banking and business investments. The UN and EU-sponsored bi-zonal reunification talks are once again on the table. And this is driving up prices and international interest as it is anticipated that whichever way the reunification cookie crumbles, there will be significant property price rises in the near future.
Buying Property in North Cyprus a Sensible Investment? Why Should We Buy Property in Northern Cyprus?
North Cyprus AKA Turkish Republic of Northern Cyprus was established for only 39 years on 15th November 1983. This was a self-declaration of Independence of the Turkish Republic of Northern Cyprus from the Republic of Cyprus by the Turkish Cypriot parliament. Since then, North Cyprus has never been formally recognized by any country other than Turkey. Over the years North Cyprus has been almost left isolated without direct trade and direct flights. Nevertheless, this little Northern Part of the island has managed to grow independently and organically in many sectors such as Tourism, Casinos, Education and IVF treatment, etc.
With a population of over 380,000 people, just the international students reached over 90,000 with a total of 25 universities. International students alone have rocketed the buy-to-let property market for local and overseas investments as they compete to offer growing Student accommodation. The strategic location of North Cyprus has been an advantage for students from Africa, Asia, the Middle East, Turkey, and Turkish-speaking countries such as Kyrgyzstan, Kazakhstan, Turkmenistan, and many more. You can check our post about Education in North Cyprus.
Low-Cost High Return
The low cost of education, low living costs, and cheap rental apartments for students, with many Universities that are based on English-speaking lessons, make studying in North Cyprus very affordable and attractive for overseas students.
Annual rental yields reached over 10% between 2016-2020 however due to the global pandemic this number has dropped dramatically to 5 % and with the effect of the devaluation of TL against foreign exchange, this number may look to stay steady for another few years.
Saying that doesn’t mean buying to let or property investment is not attractive anymore! Based on facts, property investment in the Kyrenia region which is the most popular residency and investment spot mostly by expats such as British, Russian, Germans, Iranian and Scandinavian will continue to be more profitable faster than ever. The main reason for this is the limited number of development plots and the size of the land available. Not to mention city planning office of TRNC has mandated a new law whereby limiting. And reducing the number of units to be built especially in the city center of Kyrenia and its surroundings.
Promising Property Market
Buying Property in Northern Cyprus, it’s not difficult to understand that with the growing number of overseas students, the Tourism industry, and a healthy number of foreign workers, the demand for rental properties at Kyrenia and closer surroundings such as Karaoaoglanoglu, Lapta, and Alsancak on west and Ozankoy and Catalkoy at the eastern side of Kyrenia City center will start to increase again. Demand and supply will push developers to start constructing more properties for investors. However, according to new building regulations, the number of units will be limited to building on development land only.
This new regulation will only increase the cost of the units. With the effect of global inflation of building materials, property investment in North Cyprus in the Kyrenia region looks promising. And can gain over 30% in capital growth in the near future. It is based on a shortage of resale and new apartments for sale in the city center of Kyrenia.
So, anyone making a 70,000 GBP investment in the city center of Kyrenia may walk out with almost 50% profit including min 5% rental income of 5 years and 30% appreciation.
According to Forbes magazine Iskele region has been chosen as the top 10 seafront locations to invest in globally. However, Kyrenia alone will continue to be more profitable than any other city.
10 Reasons to Invest in Real Estate in Northern Cyprus:
- Emerging country
- Fastest growing overseas students
- Growing Tourism industry
- A limited number of area and development land
- Geo-location position
- Overseas relocation expats
- Cheap real estate and low-cost leaving
- Easy access from Europe, Asia, Africa, and the Middle east
- Offshore investment opportunities
- A growing number of blockchain and cryptocurrency investors’ hub
- Great Sunny and warm weather
- Fresh foods
- Friendly local residents
- Very Low crime rates
