Property Sales in Northern Cyprus – TOP 10 Tips
Why is 2022 a Great Year to Invest in Property Sales in Northern Cyprus?
The Turkish Republic of Northern Cyprus (TRNC) is the third-largest island in the Mediterranean Sea that joins three continents: Asia, Europe, and Africa. Due to these obvious reasons, Northern Cyprus has become a hotspot for property investment in 2022. The property value has been widely increased among buyers from Europe, Canada, the UK, and the Middle East who recently invested in North Cyprus property for sale.
With time, Northern Cyprus has become one of the most popular spots for investing in real estate. Especially for people from those countries whose national currency value has decreased over the past few years. In such a crisis, it is an excellent idea for people to invest their assets in the property of Cyprus before it gets more decline.
This article will explore why it is high time to invest in property in Northern Cyprus and how other global factors affect the property for sale in North Cyprus. Let’s have a detailed analysis.
Reasons Why Northern Cyprus is a Good Place to Invest in Real Estate
The primary reasons why the majority of the people these days prefer to stay in Northern Cyprus apart from vacations are:
1. Retirement in Northern Cyprus
Many people who plan to move to Northern Cyprus permanently may have visited the place a few years before for a vacation and analyzes that this can be a perfect place to live a life after retirement.
10,000 British, Europeans and other expats relocated to Northern Cyprus after retirement. Moreover, 350,000 Turkish residents live in Northern Cyprus due to its easy property buying policies and low costs for luxury villas and apartments than in other parts of the Mediterranean Sea.
The primary reasons behind the popularity of Northern Cyprus are its moderate weather conditions, low property prices of private healthcare procedures, and unlimited leisure activities a retiree can avail of, including gold courses, paragliding, and mesmerizing mountain peaks.
2. Easy Residence Permit
Northern Cyprus happily accepts residents from all over the globe with minimum to no fee required. Compared to Southern Cyprus, where the minimum fee charged from a person, there is no fee for a residence permit in Northern Cyprus, and the entire process takes only 3 weeks to complete.
Furthermore, homeowners over 60 years can live in Northern Cyprus without applying for a residence permit. To initiate the residence permit process, the homeowner has to open a bank account and declare a certain amount per family member. The residence permit must be renewed each year, while permanent citizenship can be granted after 7 years of stay in Northern Cyprus.
3. Europeans New Real Estate Investment Hot Spot
Europeans are fans of living close to nature, in sunny areas where the sunshine can reach them without any hassle. With this charm of unspoiled nature, Europeans have made Northern Cyprus one of the hotspots of real investment.
Moreover, they have various options to choose from. For example, whether they want to buy a property and live their retirement life near the countryside or live in the middle of the city and enjoy a luxurious life with the minimum expenses and easy access to all the tourist spots.
Subsequently, the most famous sight for the European investor is the coastal beach near Famagusta and Karpaz Peninsula to enjoy water surfing and other beach activities. Europeans can find all kinds of weather they love and enjoy while settling in Northern Cyprus.
4. Profitable Investment
Over the past few years, the property prices in Northern Cyprus have increased rapidly, making it a clever and beneficial investment. Approximately every year, the rate per square foot rises by 10%.
Therefore, the most profitable property investment would be the one with zero construction when the owner sells it at the least price. Once the neighboring plots are constructed (almost in a year or two), the property cost with zero construction will increase accordingly—usually, the selling price of the property increase by 30% in a year.
5. Pay Low Taxes
The tax rates on real estate properties in Northern Cyprus are relatively low than in other parts. Some of the details about the taxes on property are stated below:
- While signing the sale contract, the stamp duty tax is about 0.5% of the total property cost.
- The value-added tax you have to pay while receiving the keys to your house or apartment is 5% of the total property rates.
- The transformer charge for water and electricity communications is 1200 to 2000 GBP, depending on your property.
However, there is a list of other payments required when purchasing a North Cyprus property for sale. But still, they are comparatively lesser than other countries.
6. Beneficial Property Rental Yields
There’s no doubt that commercial shops and houses bring more benefits for the investor than any other real estate property. Though the risks are relatively higher as it’s a heavy investment, it returns more than the investment.
Consequently, the prices of residential properties in Northern Cyprus also increase each year. Additionally, many homeowners offer their houses during the vacation seasons, which returns 10% of the total house costs each year. Popularly, the one and two-bedroom studio apartments are rented frequently. Nowadays, the maximum profit an owner can yield through short-term renting is about 15% per year.
7. A Non-Eurozone
Being non-eurozone status of northern Cyprus has made it a hub for property investment for many foreign buyers and investors. All the properties in Northern Cyprus accommodate stable pound sterling, which is the International currency in Northern Cyprus. The money is also accepted in restaurants, hotels, markets, and shops.
In North Cyprus, the buyers and investors have both the best worlds by getting the property value fixed into a stable currency while benefiting from leading a lifestyle with low costs, making purchasing a new real estate in Northern Cyprus affordable.
8. Easy Transportation
Northern Cyprus consists of one operational airport in Ercan, Lefkosa. Any investor or foreign property buyer can quickly enter Northern Cyprus if he owns a wealth passport or Schengen visa.
Moreover, there is no requirement for buying an advance visa. Therefore, people can easily reach there and purchase a permit on arrival while coming from Turkey and without a Schengen visa.
9. Everyone Feels Welcomed
Northern Cyprus welcomes people from all across the world of any nationalities. They can conveniently enter Northern Cyprus and easily purchase and rent the property there.
Whenever you have a permanent address in TRNC, you can easily apply for the residence, which takes only 21 days. The residence permit needs renewal once every year unless you are ready to support yourself financially and do not have any severe disease.
10. Living Close to Nature
One of the significant attractions for Europeans, British, and Canadian people who are investing in real estate property for sale in North Cyprus, is it’s the best place for people who want to stay closer to nature and enjoy its beauty.
The city properties of TRNC have instant access to the attractions, including Kyrenia harbor with its complete restaurant nightlives. However, the countryside offers the look of the fields, the beautiful smell of flowers, and a hometown feel. The city is only 30 minutes away by car.
Regardless of living in the countryside or central city, the residents of Northern Cyprus can never stay away from nature for extended periods. Whatever the environment you love, you can choose your property in that location.
11. Rich Culture and Civilizations
Overall northern Cyprus is an entirely blend of different cultures, customs, and traditions. It offers its residents a mixture of classical music and Turkish culture. In the Mediterranean, you can enjoy the annual music festivals and the mesmerizing views.
Moreover, the rich history of castles, ancient stories, tombs, temples, and palaces adds to the entire beauty of Northern Cyprus. People of all interests and tastes can have a wonderful life there. The passion for living close to many tourist spots attracts property buyers in Northern Cyprus.
12. Development in Educational Sector
Northern Cyprus has developed itself with universities and many active students. Around 18 operational universities exist in Northern Cyprus, and many more are to open soon and reach this number of 26.
According to TRNC, the total number of active students has crossed the figure of 100,000. The figure is increasing by approximately 12% to 15% every year, resulting in significant opportunities for real estate investment and improving its economy.
13. More Tourism
According to the stats released by TRNC, tourism has increased rapidly in the span of the last 12 months. The percentage of top countries visiting Northern Cyprus are:
- 20% Europeans
- 20% from UK
- 40% from TURKEY
- 10% from RUSSIA
Thus, more tourists mean more property will be required for rental purposes and more opportunities for the investors to buy property for sale in North Cyprus.
Effect of Global Inflation on Property Rates
Globally, it’s a high time for inflation. However, the numbers we see aren’t very high then how we experience when the prices exceed our daily amenities.
Since the global pandemic has hit so badly worldwide during the past two years, property sale in Northern Cyprus has also been affected enormously. According to the stats, property sale prices in Northern Cyprus have increased by 7.38% for apartments and 1.08% for villas across Northern Cyprus.
Unfortunately, these numbers don’t give the price information as this data is only based on the evaluation in the past two years. Besides, the resale property in the most famous area of Northern Cyprus, Kyrenia, is shrinking at a very high range. Finding a resale house in Kyrenia directly from an owner below 150,000 GBP has been challenging.
On the contrary, the new construction developmental programs in Northern Cyprus begin from 225,000 GBP for a small plot. For the modern and advanced constructed properties, the maths says the amount is about 1500 GBP per square meter with an average of 996 GBP.
Moreover, the apartment rates in the central city of Kyrenia range from 1000 to 1200 GBP per square meter, while outside the city, they are about 800 to 1000 per square meter.
Subsequently, the private villas in Catalkou and Karsiyaka are approximately 1200 to 1500 per square meter. Overall, the prices in entire Northern Cyprus are increasing rapidly, but among all, properties in Kyrenia are growing more quickly than others.
Effect of Increased Property Prices on the Property Sales in Northern Cyprus
The real estate market of Northern Cyprus has never been so unique and promoting for the buyers and investors. Though, it is an island and has