Analysis of the North Cyprus Property Market & Prices 2023 July

Unlike many countries that are currently facing high interest rates and recession, the property market in North Cyprus continues to thrive due to factors such as demand, supply, and limited availability of development lands. Let’s examine the analysis of the leading property platform in the region.

However, it is important to consider that the analysis provided may not accurately reflect the current property prices, as the data collected by 101evler is relatively recent and only covers the first quarter of 2023. As we are now in the second quarter of the year, our estimates suggest that property prices in the Kyrenia region have even surpassed the figures indicated in the analysis. According to our research, apartments are selling for prices ranging from £1700 to £2200 per square meter, while villa prices start from £2000 per square meter. It is worth noting that there may still be opportunities to find resale houses at lower prices, although it is important to consider the potential renovation costs associated with such properties. Despite these considerations, the property market in North Cyprus offers exciting possibilities for those seeking positive investment opportunities and a chance to find their dream home.

According to data from the past three months, property prices in North Cyprus have experienced an overall increase. The sale prices of apartment units have risen by 10.27%, while rental apartment prices have seen an even higher increase of 11.57%. The sale prices of villas have also shown a notable growth of 11.33%.

Analysis Market & Prices

When focusing on rental apartment units, the city of Lefkoşa has experienced the highest increase of 11.65% in the past three months. In the first quarter of 2023, the sale prices of apartment units in Lefkoşa have increased by 7.27%, with an average price per square meter of £625.84 and a return period of 13.7 years.

Regarding villas, the highest average price per square meter is found in Girne (Kyrenia), which has seen a 11.44% increase in sale prices in the past three months. The latest data shows an average price of £847.33 per square meter for villas in the region.

In Girne, both the sale prices of villas and apartment units have witnessed significant growth. Villas have experienced an 11.25% increase, with an average price per square meter of £1434.42. Sale prices of apartment units in Girne have risen by 11.36%, with an average price per square meter of £1157.71.

Moving to Gazimağusa (Famagusta), the sale prices of apartment units have increased by 11.69%. The average price per square meter for apartment units in the region is £750.76, with a return period of 16.9 years. Similarly, the rental prices of apartment units in Gazimağusa have also seen an increase of 11.51%, with an average price per square meter of £3.7.

The sale prices of villas in Gazimağusa have risen by 11.49%, resulting in an average price per square meter of £988.43.

In İskele properties, the sale prices of apartment units have increased by 11.46% in the past three months. The average price per square meter for apartment units in İskele is £1431.34.

Overall, the North Cyprus property market has demonstrated resilience and growth, with increasing property prices in various cities. The demand for properties, limited development lands, and the balance of supply and demand have contributed to this positive trend in the market.

Based on the analysis of the North Cyprus property market, here are five reasons why prices are increasing:

1. Strong Demand: There is a high demand for properties in North Cyprus, which has been a driving force behind the price increases. This demand can be attributed to various factors such as favorable investment opportunities, attractive lifestyle benefits, and the region’s natural beauty.
2. Limited Availability of Development Lands: The supply of land suitable for development in North Cyprus is constrained, which poses challenges for constructing new properties. This scarcity of available land creates an imbalance between the supply and demand, resulting in upward pressure on prices. It is important to note that North Cyprus covers an area of approximately 3,355 square kilometers (1,295 square miles), with approximately one-third consisting of hill sites and another one-third designated as government lands and roads. Moreover, around 50% of the remaining land is already utilized, and some plots lack necessary infrastructure, roads, or planning permissions.
3. Thriving Rental Market: The rental market in North Cyprus has also experienced significant growth, with rental apartment prices increasing by 11.57% in the past three months. This trend indicates a strong demand for rental properties, contributing to overall price appreciation.
4. Regional Disparities: Different cities in North Cyprus have witnessed varying levels of price increases. For example, Lefkoşa and Girne have shown substantial growth in both apartment and villa prices. These regional disparities can be influenced by factors such as location, amenities, and infrastructure, which impact property values differently across different areas.
5. Positive Economic Outlook: Unlike many countries facing high interest rates and recession, North Cyprus has demonstrated resilience in its economy. The stable economic conditions and investor-friendly policies create an environment conducive to property investment, attracting both local and international buyers and supporting price growth.

These five factors collectively contribute to the upward trend in property prices in North Cyprus, making it an appealing market for investors and homeowners alike.