North Cyprus Property Market Booming, Russians, Iranians & Germans snap up property

Russians, Iranians & Germans snap up property

North Cyprus real estate market,  North Cyprus’s red-hot property market surged in the 3rd quarter of the year as investors piled in, with Russians among the top five buyers as Northern Cyprus benefits from an influx of wealth in the wake of Western sanctions.

The first half of 2022 saw residential real estate transaction volumes up 200 per cent with a 30 per cent rise in the value of resale houses sold.According to purchase permit applications, there have been more than 5100 non-citizen international buyers until December 2022.

 

Top Investors by Nationalty

The top 5 buyers were from Russian speaking countries including Ukraine, Iran, Germany, UK, Turkey and followed by other Europeans.

Iskele has been the most popular town among Iranians & Russians where Germans & British buyers preferred to purchase properties closer to Kyrenia town centre , Lapta & some at Esentepe.

Russians were pouring money into North Cyprus properties, seeking a financial haven in the wake of Western sanctions on Moscow over its invasion of Ukraine.

Where Germans looking to escape from European political regulations, increasing inflation and high tax policies. Some of the Germans looking to move with their families thanks to good English schools, low crime rates and cheaper cost of living in Northern Cyprus compared to other European countries.

North Cyprus Houses

 

Why investors choosing to invest in North Cyprus

Some investors, they choosing to invest in the Northern Cyprus property market as a plan B because of the economic and political issues with growing tension between Russia and Ukraine.

Ever-growing demand, low supply and short resale houses promise property prices to increase at an all-time high in the Kyrenia region.

Top 5 reasons foreign investors buying in Northern Cyprus

  1. Low Cost High Return
  2. Great Sunny and warm weather
  3. Very Low crime rates
  4. Easy access from Europe, Asia, Africa and Middle east
  5. Fresh foods

 

Buying Property in North Cyprus a Sensible Investment? It depends on what you after whether its Rental income , Holiday Lets or capital appreciation  and is a more than likely a sound investment as opposed to countries in the region of the Mediterranean like Turkey,  Egypt, Morocco, Dubai or countries like Spain, Portugal, Greece or Malta.

Northern Cyprus property and real estate market looks more promising to invest.

There are many reasons why investing in North Cyprus real estate is beneficial for investors.

North Cyprus AKA Turkish Republics of Northern Cyprus has been  established for only 39 years on 15 th November 1983. This was a self declaration of Independence of  the Turkish Republic of Northern Cyprus from the Republic of Cyprus by the Turkish Cypriot parliament.

Since then North Cyprus has never been formally recognise by any country other than Turkey. Over the years North Cyprus has been almost left isolated and untouched by the world without direct  trade and direct  flights.

Nevertheless this little Northern Part of the island has been managed to grow  independently and organically on many sectors such as Tourism, Casinos ,Education and IVF treatment etc.

With a population over 380,000 people just the  international students reached over 90,000 with a total of 25 universities. International students alone has rocketed the buy to let property market for local and overseas investments as they compete to offer growing Student accommodation.

The strategic location of North Cyprus has been an advantage for student’s from Africa, Asia, Middle East, Turkey and Turkish speaking countries such as Kyrgyzstan, Kazakistan, Turkmenistan and many more.

Low Cost High Return

The low cost of education, low living costs and cheap rental apartments for students, with many Universities that are based on English speaking lessons makes studying in North Cyprus very affordable and  attractive for overseas students.

Annual rental yields reached over 10% between 2016-2020 however due to global pandemic this number has dropped dramatically to 5 % and with the effect of the devaluation of TL against foreign exchange this number may look to stay steady for another few years.

Saying that, it doesn’t mean buy to let or property investment is not attractive anymore! Based on facts,  property investment at Kyrenia region which is the most popular residency and investment spot mostly by expats such as British, Russian, Germans, Iranian and Scandinavian will continue to be more profitable faster than ever. The main reason for this is the limited number of the development plots and size of the land available. Not to mention city planning office  of TRNC has mandated a new law whereby limiting and reducing the number of units to be build specially at city center of Kyrenia and surroundings.

Promising Property Market

Buying Property in Northern Cyprus, its not difficult to understand that with the growing number of overseas students, the Tourism industry and a healthy number of  foreign workers , the demand for rental properties at Kyrenia and closer surroundings such as Karaoaoglanoglu, Lapta and Alsancak on west and Ozankoy and Catalkoy at the eastern side of Kyrenia City center will start to increase again. Demand and supply will push developers to start constructing more properties for investors but acording to new building regulations, the number of units will be limited to build on development land only.

This new regulation will only increase the cost of the units. With the effect of global inflation of building materials, property investment at North Cyprus in the Kyrenia region looks promising and can gain over 30% on capital growth in the near future and is based on a shortage of resale and new apartments for sale at city center of Kyrenia.

So anyone making a 70,000 GBP investment at city center of Kyrenia may walk out with almost 50% profit including min 5% rental income of 5 yers and 30% appreciation.

According to Forbes magazine Iskele region at North Cyprus has been chosen as the top 10 sea front location to buy or invest property abroad globaly. However Kyrenia alone will continue to to be more profitable than any other city not only at North Cyprus real estate market but globaly.

10 Reasons to Invest in Real Estate in Northern Cyprus

Invest in Real Estate

Buying Property in North Cyprus has many reasons :

10 Reasons to Invest in Real Estate in Northern Cyprus

There are plenty of reason to count about relocating or investing at real estate in Northern Cyprus.

  1. Emerging country
  2. Fastest growing overseas students
  3. Growing Tourism industry
  4. Limited number of area and development land
  5. Geo-location position
  6. Overseas relocation expats
  7. Cheap real estate and low cost leaving
  8. Easy access from Europe, Asia, Africa and Middle east
  9. Offshore investment opportunities
  10. Growing number of blockchain and cryptocurrency investors hub
  11. Great Sunny and warm weather
  12. Fresh foods
  13. Friendly local residents
  14. Very Low crime rates

Why Should We Buy Property from Northern Cyprus?

There are two type of overseas property buyers in Northern Cyprus, investors and relocation expats.

Over the years the main reason to buying property in North Cyprus was the great sunny weather, low cost living, cheap properties, low crime and fresh foods.

Firstly mainly middle class expats choose to retire at North Cyprus followed by younger family’s looking for low crime, cheap and good schools for their children and this has made North Cyprus more popular than ever to buy property.

Now thanks to internet, power of YouTube and social media, more and more people are starting to discover North Cyprus and comparing property prices globally. This new era has increased the interest of international investors for the North Cyprus Property market.

North Cyprus properties is not only promising to be a good investment for investors but also becoming a popular destination to relocate and retire.

Unlike some other countries like Dubai, Portugal and Greece where they are selling citizenship or promising certain unrealistic facts to invest in property, North Cyprus has so many things going for it  that makes North Cyprus very popular and is constantly growing.

by Cenap Turgut

 

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