by Cenap Turgut
The real estate landscape in North Cyprus is undergoing a significant transformation, marked by a surge in property listings and prices over the past three years. In Kyrenia alone, property listings have escalated from 8000 to 12000, reflecting a substantial increase in demand. Similarly, across all of North Cyprus, listings have risen from 18000 to 22000, indicating a broader trend of growth in the real estate market.
However, alongside this growth, there has been a notable rise in property prices, with figures climbing from £1000 to £3000 per sq meter. This escalation in prices presents challenges for both domestic and foreign buyers, especially as it coincides with an increase in the number of foreign buyers acquiring properties in North Cyprus. Despite attempts by the government to curb this trend through higher buyer taxes for foreigners, the effectiveness of these measures seems limited, given that more than 3500 foreign buyers have purchased properties in North Cyprus as of May 2024.
Behind the scenes, the TRNC government is thinking about making new rules to control how much property foreigners can buy and to slow down how fast the property market is growing. But some people are not happy about this. Estate agents, who help people buy and sell property, are saying that these new rules might go against international laws that protect property rights and investments. There’s even a rumor going around that this new law was suggested by the construction union.
The Interior Minister, Dursun Oğuz, says he’s the one who made this new property law.
After talking to agents and leaders in the real estate industry for a while, now even lawyers are starting to speak up against these rules. They say that these laws could take the government’s fairness and democracy backward by 100 years. They think it’s not fair and it’s not right to have laws that treat foreign investors unfairly.
This impending shift in regulations underscores the delicate balance between stimulating economic growth through real estate investment and ensuring sustainable development that benefits both locals and investors. As North Cyprus navigates these challenges, finding a middle ground that supports continued growth while addressing concerns about affordability and market stability will be crucial for the long-term prosperity of its real estate sector.
