Why North Cyprus Properties on rise in EU?
The North Cyprus property market is currently experiencing an unprecedented surge in property sales, with a remarkable number of property sale contracts registered up until April 2023. The demand is particularly notable among Russian buyers, followed by German, Turkish, Iranian, and British buyers. This trend is a continuation of the record-breaking year in 2022, where foreign house sales reached an all-time high of over 5,600.
The cities of Iskele, Lapta, and Kyrenia in the Turkish Republic of Northern Cyprus (TRNC) have witnessed a significant increase in demand for property, as reported by real estate services firm Select Estates. Furthermore, local residents in North Cyprus have also benefited from this booming market, with property prices experiencing a substantial 70% rise in 2022.
These developments raise several important questions for individuals interested in investing in the North Cyprus property market. In the following FAQ section, we address some of these queries.
North Cyprus Properties
Q1: What is driving the sudden surge in demand for property in North Cyprus? A1: The surge in demand can be attributed to multiple factors. North Cyprus offers several attractions, including beautiful landscapes, a Mediterranean climate, lower property prices compared to other European destinations, and potential investment opportunities. Additionally, the relaxation of visa requirements, increased accessibility through flights, and political stability have further contributed to the growing interest in North Cyprus.
Q2: Why are Russian buyers leading the way in property purchases? A2: Russian buyers have been prominent in the North Cyprus property market due to various reasons. The country’s proximity to Russia, affordable property prices, potential for holiday homes or rental income, and a favorable investment climate have made it an appealing destination for Russian buyers. Furthermore, North Cyprus offers a diverse range of activities, including beach resorts, historical sites, and cultural attractions, which attract Russian tourists and investors alike.
Q3: What are the benefits of investing in property in North Cyprus? A3: Investing in North Cyprus property can offer several advantages. These include:
a) Potential for high rental yields: The thriving tourism industry in North Cyprus presents opportunities for property owners to generate rental income, especially during peak tourist seasons.
b) Favorable investment climate: North Cyprus has implemented investor-friendly policies, such as tax incentives and simplified property purchase procedures, making it attractive for international investors.
c) Lower property prices: Compared to other European countries, property prices in North Cyprus are relatively affordable, allowing investors to enter the market at a lower entry cost.
d) Growing market potential: The increasing demand for property, coupled with rising property prices, indicates a positive market outlook for potential capital appreciation.
Q4: What are the potential risks associated with investing in property in North Cyprus? A4: While the North Cyprus property market presents opportunities, it is essential to consider potential risks, which include:
a) Title deed issues: Due to historical complexities, some properties in North Cyprus may have unresolved title deed issues. It is crucial to conduct thorough due diligence and seek legal advice to ensure proper ownership rights and avoid potential legal complications.
b) Economic and political stability: Although North Cyprus has enjoyed relative stability, it is advisable to stay informed about any political or economic changes that could impact the property market.
c) Currency fluctuations: Investors should be mindful of currency exchange rates as they can affect the value of investments and potential returns, particularly for non-Eurozone investors.
d) Market saturation: The surge in demand may lead to an oversupply of properties in the future, potentially affecting rental income and property prices.
It is recommended that prospective investors consult with real estate professionals, legal advisors, and financial experts to assess their individual circumstances and make informed decisions.