As the North Cyprus real estate market keeps changing due to the effects of COVID-19, This articele is for people who want to invest in properties in North Cyprus and those who are curious to stay informed about the latest trends and predictions. We’ll discuss the most recent updates and forecasts.
We will provide you with a brief overview of what you can anticipate and learn in the North Cyprus real estate market for the remaining months of 2023 and into 2024.
We’ll talk about property prices, opportunities for investment, and how the global economic crises are influencing the world in a way that some are calling it the “great rrrset.” ……….
These factors will also impact how the local market develops. Will property prices keep going up, or will they go down?…..
We’ll also discuss which areas will be the best choices and most profitable for investors.
Lets dive in
**A Thriving Property Market**
With a population of about 400,000 people, North Cyprus has seen a huge jump in property prices in the last year. `So What caused this?……. There’s a growing excitement among people from around the world, including Turkey, the United Kingdom, Russia, Germany and the Middle East. In just 12 months, property prices have gone up a lot, from a low £1,200 per square meter to an impressive £3,500 and continually rising. This brings them closer to the most popular locations like Dubai, portugal and Spain.
Could North Cyprus surpass these countries?
It’s like looking into a crystal ball and seeing that maybe the prices of homes in North Cyprus will go up in a way that’s like what happened in places like Mallorca in Spain and Dubai. In fact, some smart investors have compared North Cyprus to the popular destination “Mallorca” from the 2000s–an idea that carries weight. We saw more people being interested in 2022 when about 5,800 properties were bought by people from other countries.
And now, pay close attention because this is important: up until now in 2023, halfway through the year, more than 4,200 properties were bought by people from other countries. This showes an increasing interest and clear indications that property prices are still rising in this beautiful part of the world.
**The Whirlwind of Price Escalation**
Many people from different parts of the world are attracted to North Cyprus, and it’s easy to understand why – this place has an irresistible charm. Picture the beautiful Mediterranean sea blending with the delightful weather, where time seems to slow down, crime rates are low, the sky is a bright blue, and the sun shines warmly….. It’s not just about the stunning setting, though – there’s also an opportunity to invest and turn dreams into reality.
You know what else? North Cyprus isn’t just about being a peaceful sanctuary with affordable prices and low crime rates. It’s also fascinating and exciting due to its distinctive political situation, maintaining strong ties solely with Turkey and lacking recognition from the EU or the global financial system. It’s akin to a captivating hidden treasure, existing away from the bustling global spotlight.
As a result of these intriguing qualities, an increasing number of individuals are contemplating the idea of investing homes here. Some envision a charming second residence, while others hold dreams of retiring in an ideal setting for raising their children with quality and cheap schools. Moreover, there are those who perceive limitless opportunities in this place, viewing it as an empty canvas ready to be adorned with their aspirations.
** Anatomy of the property Boom**
The impressive rise in property prices and the increase in international buyers didn’t happen by chance; they are the outcome of a combination of key factors:
Now Let’s take a closer look at the reasons behind the strong demand and rapid price increase in North Cyprus real estate….
The surge in popularity and prices can be attributed to a number of key factors, particularly why North Cyprus has become so appealing to international buyers and investors.
In the wake of post-COVID-19 , the world sought not only a more relaxed pace of life but also a chance to explore new places and for some new starts. This trend was fueled by YouTubers and bloggers showcasing the enjoyable aspects of life in North Cyprus – from fishing, hiking to cycling and swimming, even having barbecues in gardens. While much of the world faced lockdowns and shortages of essential items funy things like tuvalte paper and masks, North Cyprus presented a life of abundance and freedom. This kind of lifestyle display created a ripple effect, quickly gaining attention just after the lockdowns were lifted. In essence, the main reasons for its popularity and demand were:
- **Cheap and Affordable Properties:**
North Cyprus became a cheaper option compared to other places around the Mediterranean. This caught the attention of investors who want to spend less money and still make good profits from their investments.
2.**Emergence from Lockdowns and quality Lifestyle:**
The charm of the Mediterranean way of life, with its scenic beauty and relaxed rhythm, has attracted those seeking a second home, a retirement retreat, less monitored freedom life or even a potential rental property. As the world rebounded from pandemic-related lockdowns, North Cyprus became an attractive choice for those desiring a new start. The appeal lay in the promise of expansive living spaces, peaceful surroundings, clean air, fine cuisine, low crime rates, and friendly locals. These factors inspired individuals to consider real estate options in the area.
- **Prime Geographic Location:** Positioned at the crossroads of the world, North Cyprus holds a strategic geographic position. Situated between Africa and Russia, nestled in the heart of the Mediterranean, and located close to both the European Union and the Middle East, it becomes an ideal choice for relocation or remote work. Its central location offers the potential for easy connectivity and access to various regions.
- : North Cyprus’ unique political and economic situation arises from not being officially recognized and having no formal ties with any country except Turkey. While Europe sees it as part of its territory, it doesn’t officially accept it and has no direct connection with government of North Cyprus. This distinctiveness means that North Cyprus isn’t tied to the regulations of global organizations and nations, even if they might sometimes seem impractical. It doesn’t have links to central banks, direct flights, or even an official postal code, giving it an air of novelty. Surprisingly, these challenges, like negative embargoes and political matters, have turned into a significant advantage for a specific group of investors. They see North Cyprus as a chance to take a different investment path that’s not limited or monitored by traditional global systems.
In summary, the attractiveness of North Cyprus to international buyers and investors has been largely shaped by its affordability, its emergence from lockdowns, and its advantageous geographic location. These factors have not only driven the surge in demand but also contributed to the rapid increase in property prices in this region.
Now, let’s delve into why property prices skyrocketed after COVID.
Before the pandemic, the market was stable, with around 1200 to 1500 international buyers globally. These buyers were mostly interested in the Kyrenia region, with fewer numbers in places like Esentepe. During the pandemic, all development and construction activities came to a halt due to global economic uncertainties, supply chain disruptions, and inflation concerns. However, as soon as the lockdowns were lifted, a flurry of activity ensued.
Initially, local residents and high-net-worth individuals began looking for better and larger properties, sparking a surge in both resale and new development offerings. Developers swiftly entered the scene, rushing to acquire land as if there was a gold rush in 800tun hundreds in America. They bought up almost every available plot for new projects, creating an immense demand for land. Yet, unlike houses, land isn’t something that can be created anew. This scarcity and high demand led to a dramatic increase in land prices.
It’s important to know that North Cyprus covers only 3,355 square kilometers. Once you subtract mountains, roads, farms, and forests, the remaining usable land is quite limited. Not all of it has the necessary infrastructure or building permissions, further constraining development possibilities. This is where the domino effect began.
Moreover, the massive disruptions in the global supply chain and logistics compounded the issue. Material costs escalated faster than developers could anticipate, partly driven by rising petrol prices and geopolitical conflicts like those between Russia and Ukraine. When we factor in all these elements – limited land, supply chain complications, and increased costs – it becomes evident how building expenses surged. And with the constant high demand, it’s likely that property prices won’t cool down anytime soon.
So, what could occur with property prices if the world experiences a severe economic downturn? Moreover, how can one make strategic choices to minimize the risk of losing profit or investment in the face of a true crisis?
Firstly you must understand what creates a strong investment and discover the top places in North Cyprus that will keep growing in value.
To start, it’s important to recognize that investing in property is usually one of the safest options you can choose. However, you need to follow two basic principles that might seem simple but are mostly ignored by buyers or not fully understood: the location and the market price.
In times when the economy is uncertain, property values can go up and down. But there are some things that can help keep things stable, even when it’s turbulent. The first really important thing is where the property is. Properties in places that people always want, like places that are convenient, good for renting, have nice views, are close to things like stores, hospital’s, schools, nice restaurants and have low crime, usually stay valuable better than ones in not-so-good areas and far away from civilisations and facilities.
The second determinant is the market price. Purchasing a property at a reasonable market price is vital, as it establishes a foundation for potential growth. Overpriced properties can suffer more significant losses during economic crises, while properties acquired at or below market value typically have a buffer against market fluctuations.
In this video, we aim to clarify how the North Cyprus real estate market has been affected by COVID-19 and provide guidance for investors. We highlight the reasons behind the increasing property prices, which are driven by global interest, and draw comparisons to popular destinations like Mallorca and Dubai. The region’s affordability, emergence from lockdowns, and appealing lifestyle all contribute to its attractiveness. The distinctive geopolitical situation and advantageous geographic location also make it appealing to investors.
The surge in property prices after the pandemic is due to factors such as limited land availability, disrupted supply chains, and higher material costs. We emphasize the significance of making well-thought-out investment decisions, with a focus on the property’s location and market price. Properties situated in convenient areas with amenities are more likely to maintain their value. Buying at or below the market value is crucial for future growth. It’s recommended to work with established real estate agents, as they provide a safe and reliable approach, unlike following YouTube influencers who offer free property tips. In conclusion, the North Cyprus real estate market holds opportunities, but successful investments require careful consideration and a strong grasp of these fundamental principles.
It’s not accurate to predict future prices if the world undergoes a reset or if more global or EU problems arise. However, North Cyprus is likely to continue attracting more investors and those seeking to relocate here. Unlike some other countries, we have limited land for development. If you purchase property in the right location, you’re unlikely to make a mistake. To put it simply, having the right guidance from an estate agent and making a purchase at the right location and price is key.
Wondering how to make sure you’re buying the right property, at the right price, in the right place? I provide conveyancing services for those who want to make clever investments with high returns. It’s a private consulting service with unbiased advice. If you’d like to have me as your consultant, please take a look at the link below.
Cenap Turgut – With over 18 years of experience in the Northern Cyprus real estate market, Cenap Turgut is one of the most respected and sought-after agents in the region. His extensive network and deep knowledge of the local market make him an excellent choice for anyone looking to buy or sell property.
Cenap is real estate agent and property consultant in Northern Cyprus, have worked in the real estate industry over 18 years, working with from investors, first time to last time home buyers, and everything in-between. Providing property consultancy and marketing services to developers, property buyers, sellers, landlords, property investors in this field. Northern Cyprus, Turkey, UK (London).