Property Market in North Cyprus 2023
North Cyprus attracts more and more visitors every year and has become a popular travel destination. The country is enriched with golden sandy beaches, fascinating bays, crystal clear sea water, 300 sunny days a year, beautiful untouched nature, rich culture and high quality of life. As a result of its popularity, the property market has experienced strong growth in recent years.
A Profitable Investment
Investing in property are profitable for various reasons. Here are the main reasons why property investment in North Cyprus is attractive:
1. Affordable Property Options
Compared to many other Mediterranean countries, property prices in North Cyprus are still relatively low. This has been a major factor in driving demand from overseas investors, particularly those looking for a second home or holiday home.
2. Potential for Price Appreciation
The property market in North Cyprus has historically shown an upward trend in property values. As a relatively new tourist destination and an increasing demand for properties, prices tend to rise over time. This means a high return on invested capital.
3. High Rental Income
If you don’t plan to use your property in North Cyprus as your primary residence, you can generate rental income by renting it to tourists or long-term tenants. Increased tourism in the region has created a stable demand for rental properties.
4. Currency Advantage
Pound Sterling is the official currency for all property transactions. This provides financial stability for your property asset and future commercial steps such as reselling the property.
5. Tax Benefits
North Cyprus offers tax incentives and benefits for property investors. There are often tax advantages and benefits for foreign investors, including low property taxes.
6. High Quality of Life
North Cyprus offers a high quality of life with a pleasant Mediterranean climate, beautiful beaches, and historical sites. This makes it an attractive location for both permanent residency and as a vacation destination, which can increase demand for properties.
7. Infrastructure Development
Significant investments have been made in the country’s infrastructure such as the new international airport (Ercan), motorways and also investments in healthcare and tourism. This has increased the area’s attractiveness and potential for increased tourism and property value.
8. Low Cost of Living
North Cyprus offers affordable living conditions comparable to European standards. However, the average cost of living in North Cyprus is lower than in most European countries.
9. Safety and Security
According to new research conducted by ValuePenguin, Cyprus is one of the safest countries in the world with the least crime. Cyprus ranks 1st among countries with a population of less than 5 million and 5th among all countries in the world.
The Property Price Development
The price development of properties in North Cyprus has varied in recent years, but overall there has been an increasing trend. Below are some examples of how prices have developed:
- From 2012 to 2018, property prices in North Cyprus increased by an average of 10% per year according to data from the Central Bank of Cyprus.
- In 2019, the price increase continued, but at a slightly lower rate. According to a report from The Association of Realtors, property prices rose by around 5% during the year.
- In 2020 and 2021, the property market was affected by the Covid-19 pandemic, but despite this, prices continued to rise. According to a report from the Central Bank of Cyprus, property prices in North Cyprus increased by 5.6% in the first half of 2021 compared to the same period the year before.
- In 2022, the world economy was affected by the war in Ukraine, high inflation, high energy prices and building materials. In connection with this, demand for properties increased, which contributed to prices rising by an average of 10% during the year.
The Best Places to Buy Property in North Cyprus
The best places to buy property in North Cyprus depend on the intended use. Central and more populated areas like Kyrenia and Famagusta are the best places for people who want to live in a lively area or want to start earning profit through investments right away.
On the other hand, developing cities and villages like Esentepe, Tatlisu, Iskele are better for small investors. These types of places are better for future investments. Here are the most popular places to buy property in North Cyprus and why;
Kyrenia
Kyrenia is one of the most popular cities in North Cyprus for both tourists and investors. The city has a beautiful harbor, historical sites, restaurants and nightlife. Kyrenia along with the nearby villages of Alsancak and Lapta have a strong demand for properties which drives up prices in this area. In addition, the demand for rental properties on both short and long-term basis is great. Read more about Kyrenia…
Esentepe
Esentepe is located on the northern coast 20 km east of Kyrenia and is popular with those seeking seclusion and closeness to nature. The area has Northern Cyprus’ best golf course and beautiful beaches. Esentepe and the nearby villages of Bahceli and Kucuk Erenköy are very popular with foreign investors with high returns on capital and short-term rentals. Read more about Esentepe…
Tatlisu
Tatlisu is a small charming village located on the northern coast, 35 km east of Kyrenia and 15 km from Esentepe. Tatlisu attracts with peace and quiet, surrounded by untouched nature, lush greenery, mountain range and excellent sandy beaches. The area is one of the fastest developing areas in Northern Cyprus with a high demand for housing, which contributes to a good return on investment. Read more about Tatlisu…
Iskele
Iskele is located 20 km north of Famagusta in the eastern part of Cyprus. Iskele is most popular for its long golden beaches. Long Beach is undoubtedly one of the most visited beaches in Cyprus. In recent years, Iskele has also begun to attract attention as an investment hub. The rapidly growing real estate sector has a significant role in this situation. New, modern and luxurious residential and commercial projects are being built every day. On top of that, they are more affordable compared to the other parts of the country. This makes Iskele the perfect destination for long-term investments.
Financing Property Purchases
Financing property purchases in North Cyprus can be accomplished through various methods and options. Here are some common ways to finance a property purchase on the island:
Bank Loans
Many banks in North Cyprus offer property loans to foreign buyers. An investment of between 20-30% of the property’s value is usually required and the loan then runs over a period of up to 20-25 years. Interest rates and terms may vary depending on the bank and buyers financial situation.
Foreign Loans
Using a foreign loan to finance the purchase of a property in North Cyprus can be a good option. Usually a loan on an existing property that you own in your home country.
Developer Financing
Most property developers in North Cyprus offer installment purchases, so called payment plan where the buyer pays part of the price at the time of purchase and then pays the rest in installments payment over a period of up to 5 years without interest.
Cash Payment
Property purchases can also be financed through cash purchases, where the buyer pays the entire purchase price directly at the time of purchase.