Property market in North Cyprus
North Cyprus attracting more and more Scandinavians and northern Europeans who are seeking for warmer climate, a calmer life and an active lifestyle. No wonder considering that North Cyprus is a beautiful, safe and friendly country with a pleasant climate and 340 sunny days a year.
Value for money!
Here you will find beautiful golden sandy beaches, unspoiled nature, rich culture and delicious dishes. Beside that, North Cyprus is a safe and secure country with low crime. This is where the world’s friendliest people live. You always feel welcome and can easily socialize with both the locals and also various international communities such as Swedes or other nationalities who live on the island.
North Cyprus generally offers a high quality of life at a lower cost than other countries around the Mediterranean. Here, property prices are still significantly lower than, for example, Spain and Portugal.
The range of properties
The property market in North Cyprus is booming right now and new properties are being built like never before. Mainly holiday homes along the north coast of the Kyrenia region and in the most popular areas among Scandinavians Esentepe and Bahceli just east of Kyrenia. Here you live literally in the middle of nature between the sea and the mountain with proximity to golf and most restaurants. The same applies to the Famagusta region with areas such as Bafra and Iskele with more international mix of home buyers. This area is best known for its miles of golden sandy beaches.
If you want to live more centrally in a town close to most amenities, there is also a large selection of new apartments and villas in the Kyrenia city and also on the outskirts of the city in Çatalköy and Alsancak.
Despite the property market for international buyers is relatively new in North Cyprus, property prices have risen at a rapid pace. On average, prices have risen by 5% per year throughout the country and in key investment zones Kyrenia city and Esentepe by 10% per year.
This is in contrast to falling prices in other Mediterranean countries. The reason why North Cyprus property prices have been kept so stable is that properties are built with private capital and not with loans from the international banking system. Therefore, the property market in North Cyprus is not affected by global financial crises or other factors.
We have seen this during the pandemic year 2020. Despite one of the worst financial crises in history since the 1930s, property prices in North Cyprus have remained stable, unlike other countries around the Mediterranean, which have fallen by 10-20 percent during the year.
Since 2018, it is possible for international buyers to apply for mortgage with local banks at 50% of the purchase price with an annual interest rate of 4-8 percent. This only applies to existing properties with registered title deed. For off plan or ongoing projects, construction companies offer a financing plan which is usually called a “payment plan”. This varies between the companies, but usually 30-35 percent of the purchase price is paid at the signing of the purchase contract and the remaining amount for 2-3 years interest-free installament payment or 5-10 years with current bank interest. The most common way to finance property purchases abroad is to mortgage existing property in your home country. If you have the opportunity to do so, you will clearly receive a lower interest rate.
Buying a resale property
A resale property is an existing and used property owned by a previous owner. Buying a resale property means that you are buying from a private person or in some cases from a construction company. These properties are sold in their existing condition and are usually incl. furniture and appliances. Just like in your home country, it is your responsibility to inspect the property before you sign the purchase contract. When buying a resale property, you will be represented by your lawyer who handles the entire purchase process from checking the property to the purchase contract, payments and legal registration. Read more about buying property in North Cyprus.
Buying a new development property
This category includes new built, off plan and ongoing projects. A new built property means that it has recently been completed and is ready for occupancy. A off plan or ongoing project means that it is in the planning phase or under construction. Throughout the construction process, the construction company has an obligation to inform you and your broker about the process, schedule and other important information regarding the project.
All new development properties in North Cyprus have a construction company as owner and developer. When buying new development, you are represented by your lawyer who handles the entire buying process from property control to purchase contracts, payments and legal registration. Read more about buying a property in North Cyprus.
The rental market
Many people have realized the value of investing in properties in North Cyprus. Being able to rent out their apartment or house when they are not there and make an income from the rental at the same time as the value of the property increases is always a good deal. Some even think that it is a good investment to buy an apartment and rent it out permanently instead of having their money in the bank with low or no interest at all. There is a strong demand for apartments and villas especially during the high season (May-Nov). It is quite possible to earn between 5-10% of the purchase price per year.
Factors that are popular
It is a big plus if the property has a sea view, but it is not a must. It is also desirable that there is a terrace or balcony, especially if you turn to Scandinavian tourists. It is also important that there is a communal pool or private pool if it is a villa. It is also a plus if there are other facilities such as gym, spa, restaurant, management office m.m. The most popular is that there are 1-3 bedrooms. Among the most popular types of accommodation when international tourists get to choose are a villa in first place, an apartment in second place and a townhouse in third place. The type of property that make most income is the right villa in the right area. You also look at whether the area is well maintained and that it is walking distance to the beach.
Rental via construction company
If you buy new development from a construction company and you are not able to rent it out yourself, the construction company helps with annual tenants or more temporary tenants. They offer a complete “turnkey” rental package with rental and management of your home for 20-30% of income. This varies between the construction company and the type of property.
This is included in the rental package:
Marketing (advertising and other activities to find tenants)
Key management (check-in and check-out)
Payment management (deposit and final payment)
Inspection (before and after the rental period)
Cleaning (before and after the rental period)
Possible repairs in case of damage
Some construction companies offer a rental guarantee, which means that you get between 5-7% of the purchase price in rental income per year, regardless of whether your home is rented or not. You get access to your home between 1-2 weeks during the low season and 1-2 weeks during the high season. An example of this is the new project Mykonos Homes in Bahceli.