You have a question – “Why Northern Cyprus?”. In this section you will find many reasons why investors and property buyers choose North Cyprus.
Low price
Firstly, the real estate market in Northern Cyprus and in Turkey is becoming one of the fastest growing and most profitable markets in the Mediterranean. Buyers are attracted by the pristine and simply unique nature, as well as the abundance of real estate offers for every taste. Far-sighted investors, relying on long-term forecasts, are investing in real estate in Northern Cyprus right now, while prices have not risen to the level of the rest of the Mediterranean.
It should be noted that those investors who chose Northern Cyprus 5-10 years ago have already fully experienced the increase in land and real estate prices many times over. And today the price of land in Northern Cyprus is about 35% lower than the price of a similar property in the southern part, the price of a villa in the north is about 40-50% lower than the price of a similar property in southern Cyprus for similar properties in other Mediterranean countries with a similar climate, such as Spain, Italy, France and Portugal.
Economic Development
Trends in the economy of the Turkish Republic of Northern Cyprus have shown consistent and continuous growth and development. Achieving an average annual growth rate of 7% should be regarded as a significant achievement. The cost of living in Northern Cyprus is one of the lowest among all Mediterranean countries. Prices for raw materials, materials and products are relatively low, and very often quite comparable or even better quality.
The property market in Northern Cyprus is one of the fastest growing markets in Europe. Investors are attracted by the real and potential appreciation in combination with the return on investment at a level with other European countries. The country is experiencing an investment boom in the real estate market, with growth potential and a significant return on investment.
There are also no restrictions on the rental of housing and with the existing support of the TRNC government for the active development of tourism in Northern Cyprus, renting housing to an increasing number of vacationers is easy and profitable. The rental property market is also very vibrant and tends to grow well, allowing your investment to pay off quickly.
Significant growth in tourism
Tourism continues to be the main priority sector and one of the main factors in the economic development of the TRNC. Obviously, in many tourist regions of the world, the lack of hotel rooms is quickly filled by large international hotel chains. They are still very under-represented in Northern Cyprus, partly due to the still undeveloped financial system in the country, and in many cases due to fears that by developing their network in Northern Cyprus, they will cause disapproval and a negative reaction from their hotels in Southern Cyprus. in Greece and its islands.
In parallel with the economic development program adopted by the Government of the TRNC, the tourism sector was designated as the most important sector for the development of the economy, and the Government decided to promote and provide all necessary benefits and incentives to potential investors in the tourism sector.
Visa-free entry
Compared to other Mediterranean countries, entry into Northern Cyprus is subject to a visa obtained in Turkey. You can buy a ticket and fly at any time.
International Support
The European Union has committed 259 million euros in aid to support Northern Cyprus and develop its infrastructure, thus authorizing a significant influx of foreign capital into the country and preparing it for the subsequent significant influx of tourists.
The international community has significantly softened its position towards Northern Cyprus after the vast majority of the country’s citizens voted “yes” to the UN resolution in 2004, known as the “Annan Plan”, while the Greek side rejected the proposal for a peaceful settlement of the “Cyprus issue” “. US Secretary of State Condoleezza Rice and British Foreign Secretary Jack Straw met in Northern Cyprus with President Talat, and this meeting was of great political importance both for Cyprus and for the world community.
A promising future
International diplomatic sanctions, as well as trade and tourism embargoes, are being gradually lifted.
The European Union is contributing to a fund for the development of Northern Cyprus and the improvement of its infrastructure, thus paving the way for active foreign investment in the country and preparing it for the forecasted significant influx of tourists. Northern Cyprus, in its current situation, is very reminiscent of Spain 50 years ago, when, after long years of isolation, the country began to “open up” to the world community. Look at Spain now, and imagine what kind of income far-sighted investors have received and continue to receive now, investing in the then undiscovered country. Perhaps, somewhere in the world there are still isolated such “hot spots” for investors, but in the Mediterranean, it is Northern Cyprus that is the only such place left.
The modernized Ercan Airport allowed to increase the annual number of tourists by 2 times.
According to the UN estimate, about 20,000 more villas need to be built in Northern Cyprus in the next 5 years. The current figure of 1,000 per year indicates a greater likelihood of shortages, and a correspondingly predicted increase in prices.
A world-class golf club, state-of-the-art yacht clubs, a range of luxurious hotel and entertainment complexes, as well as modern medical centers attract an increasing influx of tourists, and tourism plays a major role in the economic development and stability of Northern Cyprus.
Forward-looking policy
Architects and developers from all over the world have learned from the mistakes made by their predecessors during the 70s and 90s, in many countries of the world you can now see reconstructions of the previously built, in an attempt to restore the original beauty of nature that was destroyed.
Developers in North Cyprus understand the need to respect nature when constructing buildings (Northern Cyprus state laws strictly call them to this understanding). City architects have learned from the mistakes made in the southern part of Cyprus, where nature has been damaged by the construction of multi-storey low-quality apartment blocks and hotels, and in Northern Cyprus there is an unconditional ban on such buildings so as not to disturb the views of other houses and not to disturb the overall beauty of the surroundings – all this makes Northern Cyprus an unusually attractive place.
There are also many lands with the status of a protected area (mainly on the Karpas), where nothing can be built at all in order to preserve and protect rare and untouched nature.
Perfect climate and nature
Cyprus has a mild Mediterranean climate, with long dry summers from mid-May to mid-October and mild winters from December to February, averaging 340 days of sunshine a year. In summer, the average temperature fluctuates between +30-35 degrees Celsius, while in winter it often rains and the average winter temperature is +12-17 degrees. The water temperature in the sea ranges from the lowest in January (+16 somewhere) to +28 in August. The sea is crystal clear, and the marine life is still undisturbed by anyone. The depths of the sea are fraught with a lot of living creatures, corals, the remains of ancient ships and ancient monuments.
Nature in Northern Cyprus wakes up in November, when in response to the first rains the fields are covered with fresh greenery. In autumn, winter and spring, a charming multicolored lush vegetation opens up. Anemones, cyclamens, daffodils, hyacinths, irises, wild orchids, wild tulips and almond trees all bloom profusely until the very end of March. Olive and carob trees flourish throughout the area, along with citrus fruits such as oranges and lemons, and various vegetable crops also grow.
The mountains are covered with fragrant pine forests, and eucalyptus trees thrive along the entire coastline. The landscape is ideal for raising goats and sheep, and travelers are delighted by the views of a flock of sheep peacefully grazing in the mountains.
No crime, no traffic jams, no industrial areas
And that’s it! It’s simply SAFE. The most shocking thing for foreigners is that people can safely leave their car unlocked, at home, at a store or anywhere else. Indeed, the island is small, and there are practically no thefts.
And if there are five cars at the traffic lights, the locals sigh: “Cork”, which causes indulgent smiles from visitors from large metropolitan areas who know that there is a “cork”.
Of the industrial facilities, there is only a thermal power plant on the road from Kyrenia to Esentepe and a plant for the production of paving materials on the road from Kyrenia to Ercan Airport. There are also small local production of building materials. That’s all: no chemicals that poison the air; no recycling that violates the environment.
All these factors are extremely attractive – both for tourists and for those who want to live here.
New compensation law
The new Law was enacted at the behest of the European Court of Human Rights, following a recent decision to focus on the fact that the TRNC Real Estate Compensation Commission did not adequately provide for recovery opportunities.
Any land/real estate transaction entered into by anyone, a foreigner or a citizen of the TRNC, after 1974 is 100% legitimate and risk-free, and any necessary compensation will be paid from the Fund established under the Government of the TRNC, and the need for this compensation can only arise after any solution of the Cyprus question.
First of all, it should be noted that if there is a need for any compensation, then they will be simply miserable. They will be calculated based on the value of the land/property at 1974 prices indexed for growth. That is, if some compensation is accepted after the settlement of the Cyprus issue, then it will most likely be approximately 8% to 15% of the cost of a typical villa or apartment. This is even less than the annual income from renting out this property.
Every Greek Cypriot who has left his land/property in the North can now easily apply to the TRNC Court for one or another compensation, exchange or return of land/property.
Any compensation (if any) is paid from a Fund provided by Turkey, established on behalf of the European Court of Human Rights and designed specifically for this purpose, and legal experts argue that no current owner of property in Northern Cyprus (whether a TRNC citizen or foreigner) will not pay any compensation. It is clear that the number of foreign-owned properties purchased at a price lower than the original value of the property/land in 1974 will be negligible.
The new Law was enacted at the behest of the European Court of Human Rights, following a recent decision to focus on the fact that the former TRNC Real Estate Compensation Commission did not adequately provide redress opportunities.
Any land / real estate transaction entered into by anyone, foreigner or citizen of the TRNC, after 1974, is 100% legitimate and risk-free, and any necessary compensation will be paid from the Fund established under the Government of the TRNC, and the need for this compensation can only arise after any solution of the Cyprus question.
High real estate market growth
Northern Cyprus remained undiscovered for many years after Cyprus was divided into two parts after 1974, and as a result, it avoided the massive unaesthetic construction that other Mediterranean coastal regions underwent in the 1970s, 80s and 90s. Now a number of factors and reasons contribute to a significant influx of people wishing to visit Northern Cyprus and the rise of the real estate market. As soon as the rules for crossing the border were simplified and the bans were lifted, the North of the island became more accessible. The Annan Plan referendum generated a lot of publicity and attracted even more tourists and investors to the northern part of the island. Also, everything goes to the fact that direct flights to Ercan International Airport will be allowed (for now, planes must land in Turkey, and only then fly to Northern Cyprus) – nevertheless, planes from the USA and Azerbaijan fly directly to Ercan, also actively interests are being lobbied to resolve the issue of direct flights from the UK and Germany. The main approach of the European Union is a course towards ending the isolation of Northern Cyprus. As soon as direct flights are allowed, the influx of both investors and tourists will increase dramatically, which will entail a sharp jump in prices for the purchase and rental of real estate.
Today, the Government of Northern Cyprus predicts a significant influx of visitors in the next few years. The main concern is the lack of places in hotels. In fact, the TRNC Government today talks about missing at least 15,000 hotel beds over the next 5 years and 30,000 additional beds after 10 years – and this is a 250% increase in today’s number of beds. This level of demand will significantly affect property prices in Northern Cyprus.
Conclusion
The real estate market in Northern Cyprus is becoming one of the fastest growing and most profitable markets in the Mediterranean. Real estate here is absolutely worth the money for which it is sold; similar objects in Europe are sometimes more than 3 times more expensive. As a result, it is important to be aware that investors, both local and foreign, are actively buying into a promising new real estate market, in anticipation of good returns. On top of that, the process of buying property in Northern Cyprus is simple, transparent and reliable, as the legal system here is similar to the British legal system, one of the oldest and most proven legal systems in the world.
This allows a foreign investor to freely and reliably conclude real estate transactions. All of the above, coupled with the country’s excellent location, means that the opportunity to earn excellent returns on investment is constantly growing.
