11 reasons why investors and home buyers are choosing North Cyprus.
The very first and most obvious reason; The real estate market in Northern Cyprus is active and exciting, and is becoming one of the fastest growing and lucrative markets in the Mediterranean. Buyers are attracted by a simply stunning and unique nature, as well as an abundance of offerings for every taste.
In general the price of property in the North is significantly (40-60%) lower than prices for similar properties in other Mediterranean countries with similar climates such as Spain and Portugal.
While detached 3-bedroom villas overlooking the Mediterranean on the Spanish coast will cost you around €250,000, a similar villa in Northern Cyprus is available for less than €125,000.
The Cost of Living in North Cyprus is one of the lowest among all the Mediterranean countries. Prices for raw materials and products are relatively low, and very often are comparable or even better quality.
Trends in the TRNC economy have shown a consistent and continuous growth and development since 1977. Despite the high level of inflation, the economic and political difficulties and obstacles - to achieve an annual average rate of 4.4% should be seen as a significant achievement.
In general, the real estate market of Northern Cyprus is one of the fastest growing markets in Europe. Investors are attracted to the real and potential price increase, coupled with the return on investment on par with other countries in Europe and the UK. The country is experiencing an investment boom in the property market, with growth potential and significant return on investment.
There are also no restrictions on the provision of housing for rent and active support of the TRNC tourism development in Northern Cyprus, needing to provide for an increasing number of tourists and it is easy and profitable. The non tourism rental market is also very busy and has a good growth trend that allows a quick return on investment.
Tourism continues to be a major priority sector and one of the main factors in the economic development of the TRNC. It is clear that in many tourist areas of the world the shortage of hotel rooms quickly filled the large international hotel chains. They are still very poorly represented in North Cyprus.
In parallel, with a program of economic development, adopted by the Government of the TRNC, the tourism sector has been identified as the most important sector of the economy, and the Government has decided to encourage and provide all the necessary facilities and encouragement to potential investors in the tourism sector.
Compared to other Mediterranean countries, entrance to Northern Cyprus is carried out on a ‘visa on arrival’ basis. At any time you can buy a ticket and fly.
The international community has softened its stance towards Northern Cyprus after the vast majority of citizens voted "for" a UN resolution in 2004, known as the "Annan Plan", while the Greek side rejected an offer of peaceful settlement of the Cyprus problem.
International diplomatic sanctions, as well as trade and travel embargo are to be phased out. The European Union has identified €259 million in aid to fund the development of the Euro North Cyprus and improve its infrastructure, opening the way for active foreign investment in the country and preparing it to the predicted significant increase in tourists. Northern Cyprus in its current situation is very similar to Spain 30 years ago, when, after long years of isolation, the country began to "open" to the world community.
The new Ercan airport, which opened in May 2004, will soon take direct flights to North Cyprus for the first time since 1974, when a travel embargo is finally lifted. This fact at a conservative estimate would increase the annual number of tourists from 433,000 to 2 million people over the next five years and it will still be below the current level of the number of tourists, 2.3 million, who visit annually Southern Cyprus.
According to UN estimates, Northern Cyprus needs to build another 30,000 houses in the next 3 years. The current figure of 500-1,000 per year indicates the deficit, and thus the projected rise in prices.
The island boasts an 18 hole championship standard Golf Course, recently opened, and two more are under construction at the moment. The new Yacht Club attracts a great flow of tourists, and tourism plays a major role in the economic development and stability of Northern Cyprus.
The TRNC Government shows great foresight and common sense at banning of building anything greater than 2 floors within 100 meters of the beach.
Architects and developers from around the world learnt a lesson from the mistakes made by their predecessors during the 70's, 80’s & 90's in many countries around the world. It can now be seen that major reconstruction is under way on the previous buildings in an attempt to restore the original beauty of nature, which was destroyed.
Also there is a lot of land with Conservation status in the protected areas (mainly in the Karpas), where you cannot build anything at all, to preserve and protect a rare and unspoilt nature.
Cyprus mild Mediterranean climate, with long dry summers from mid-May to mid-October and with mild winters from December to February, the average is 330 days of sunshine a year. In summer, the average temperature ranges between 30c-35c, while in winter it rains quite often (about 500 mm of rain), and the average winter temperature is 12c-17c. The sea temperature varies from the lowest in January, around 16c, up to 28c in August. The sea is crystal-clear and teaming with sea life, corals, 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 by fresh herbs. Autumn, winter and spring charms the eyes with multicoloured lush vegetation. Anemones, cyclamen, daffodils, hyacinths, irises, wild orchids, tulips and wild almond trees all blossom violently until the end of March. In the Mediterranean there is no other place that boasts more than 30 different species of wild orchids! Olive and carob trees grow luxuriantly throughout, along with citrus trees - oranges, lemons and grapefruit, also a wide variety of vegetables and melons.
The mountains are covered with fragrant pine forests and across the coastline wildly growing acacia and eucalyptus trees. The landscape is ideal for the breeding of goats and sheep, and travelers admire views of peacefully grazing flocks of sheep in the mountains.
The most surprising fact for foreigners is that people can safely leave their car unlocked outside the house, at the store or anywhere else...
The industrial facilities can be seen only on the road from Kyrenia to Esentepe and a small factory area for the production of materials for roads, pavement etc on the road from Kyrenia to Ercan airport. There are small, local factories for the production of building materials. That's all; no chemicals poisoning the air, or damaging the ecology.
All these factors are extremely attractive for both tourists and for those who want to live here longer than just a vacation.
A new law was adopted on behalf of the European Court of Human Rights, following the recent decision to focus on the Commission for compensation in TRNC relating to property not adequately providing the possibility of reimbursement. Any deal with land/real estate, by anyone, foreigner or a citizen of the TRNC since 1974, is 100% legitimate and risk-free, and any necessary compensation will be paid from the Fund, established by the Government of the TRNC.
Every Greek Cypriot who left their land/property in the North, can now safely apply to the Court in the TRNC for some compensation, exchange or return of the land/property. Any payment (if required) shall be paid from funds provided by Turkey, created on behalf of the European Court of Human Rights, and designed specifically for this purpose, and legal experts argue that no current owner of a property in North Cyprus (whether citizen or foreigner) will have to pay any compensation.
The unresolved issues between the North and South in Cyprus since 1974 has meant that Northern Cyprus has not suffered the mass aesthetic construction suffered by other Mediterranean coastal regions during the 70’s 80’s & 90’s. Now a number of factors and causes have contributed to a significant influx of people wishing to visit Northern Cyprus and the rise of the real estate market.
Today the Government of Northern Cyprus forecasts a substantial influx of visitors in the next few years. The main concern is the lack of hotels. In fact, the government of the TRNC today speaks of a shortfall of at least 30,000 beds in hotels over the next 2-3 years and about 50,000 additional beds at the end of the decade and that is a 500% growth in the number of beds today. This level of demand will greatly affect the prices of property in Northern Cyprus.
The construction and property market in North Cyprus is one of the fastest growing and lucrative markets in the Mediterranean. The properties here are valuable compared to similar properties in Spain or France which are usually three times more expensive.
On top of that, the process of buying property in North Cyprus is simple, transparent and reliable as the legal system is similar to the British Legal system, one of the oldest and most trusted legal systems in the world. This allows foreign investors to freely and safely conclude a purchasing transaction. All of this, coupled with the excellent location of the country means that the possibility of a great income from investments is growing.