Property market in North Cyprus
North Cyprus is Europe’s newest hot spot when it comes to property investment In the Mediterranean. Several thousand Europeans have already invested and more and more people get their eyes on this amazing place. There is strong demand for properties in North Cyprus and prices have risen steadily by 5-10% over the past 5 years.
The major regions of Kyrenia and Famagusta are growing rapidly, many new properties are built on the northern and eastern coasts, and there is a balance between supply and demand. A lot is invested on infrastructure, education, healthcare and tourism.
North Cyprus legislation is based on English law and real estate deals are made in British Pounds (GBP).
Compared to, for example, the Spanish south coast and South Cyprus, prices in North Cyprus are still half as much. Newly built apartments close to beach with fantastic standard where pool, gym, spa etc. are included in start from £45.000 with often including sea views and large terrace. Villas with private pool and sea view, incl. Furniture, AC and appliances start from £1.00.000.
Different types of properties
There are different types of properties to buy; new built, under construction and “off plan”, which means that the property is on the planning stage. There is also a wide range of resale properties purchased from private individuals through a broker, usually fully furnished incl. AC, appliances etc.
North Cyprus offers something for everyone; properties near the sea with sea view, directly on the beach, quiet residential area close to the town, central location in the town, close to all amenities, close to golf or simply a bit of everything.
As a European citizen, you can get a loan from a North Cypriot bank to 50% of the purchase price at an annual interest rate of 6-8%. This only applies to properties with registered title deed (not off plan and under construction). To be granted loans, you must meet certain requirements from the bank, including fixed income from your home country.
The most common is to take a loan from your home country. This means taking a loan on an existing mortgage loan with significantly lower interest rates than a North Cypriot bank offers.
For buildings that are off plan or under construction, construction companies offer a financing plan, often called “in-house loan” or “payment plan”. This varies between the companies but usually you pay 25-30% of the purchase price when signing the purchase contract and the remainder in installment for 3-5 years without interest or at a lower interest rate than the bank.
There is a great demand for apartments and villas to rent to tourists and even students in North Cyprus. If you do not want or can not do the renting by yourself, the construction companies help with annual renters or more temporary tenants. They offer a complete “turnkey” management package with secure rental and management of your property.
Some construction companies offer rental guarantees which means that you receive rental income (6 – 7% of the purchase price) regardless of whether your property is rented or not.
Why North Cyprus?
- 340 days of sunshine a year with amazing scenery and people – you can manage English on the whole island.
- Real estate prices are 50% lower than, for example, southern Cyprus and Spain (good time to invest).
- Good investment; property prices rise by 5-10% annually.
- When you’re not there, you rent out and thus pay your living in the sun.
- Generous tax system, extremely low crime, well-functioning health care, English legislation.
- Significantly lower living costs than, for example, southern Cyprus and Spain.
- The property owns itself to 100% – no co-ownership
- Untouched nature, hiking trails, nature beaches, etc.
- Just 4 hours away
Why is it safe to buy real estate in northern Cyprus
The Immovable Property Commission (IPC) was created by the European Court of Human Rights in 2005 to provide a local solution for land or compensation requirements to Greek Cypriots. Previously, their only opportunity was to turn to the “European Court of Human Rights” (ECHR), which was unnecessarily costly and time consuming for both the court and the plaintiff.
IPC has its office in Nicosia and its operations officially started on March 17, 2006.
In addition to providing a solution for the plaintiff, it has also led to providing complete protection for buyers of real estate in the north.
The ECHR has established that it is a final and effective solution to the Cyprus problem. Landowners can receive either financial compensation or compensation with other land (if the property has not been improved or transferred to another).
IPC has successfully contributed to an overall solution of land issues in northern and southern Cyprus.
In addition, the IPC has successfully managed the exchange of land between Turkish and Greek Cypriots, which reduces the economic burden for IPC.
A study by ECHR of all decisions on land issues provides total security and protection for buyers of real estate in northern Cyprus. Buyers are also protected and can feel completely confident in the fact that ECHR is the supreme court and its decision is final and can not be appealed.
Some advice, regarding the Greek / Turkish Cypriot question, that it would not be safe to buy real estate in northern Cyprus is HOWLY FAILURE!
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