Will Property Prices Drop Due to New Regulations?

Will Property Prices Drop Due to New Regulations?


Is it the right time to buy?

Is it the right time to sell?

Where should I buy property in North Cyprus?

Let’s discuss the impact of new property laws on the North Cyprus real estate market;

This content was supposed to be the second part of last week’s property update about the new property laws. However, it’s still early to make part 2 because there are unclear clauses in the new law that even lawyers are struggling to understand. A group of property lawyers is working to take this law to the high court to revise it for more fairness for investors.

Last week, I promised to send the German and English versions of the law. However, due to the complicated clauses, I decided to hold off because even the Turkish version is difficult to understand. So, make sure to subscribe to our channel and email list to be informed about new updates.

As I always say, “location, location, location.” Last week, with the new property laws in North Cyprus, we have witnessed again that the right location and property prices always win in the short and mid-term. We need short and mid-term gains, not long-term plans, because in the long term everyone wins or at least doesn’t lose, but we all have a short life span.

For those who don’t know, short term is usually 3-12 months (mostly for buying and selling houses for a quick return, called flipping), mid-term is considered 3-6 years, and long term is 7-12 years.

Now, going back to today’s video subject: **Will Property Prices Drop Due to New Regulations?**

**My short answer is yes.**

The new property regulations in North Cyprus will make buyers sell their extra properties within the next two years. It’s estimated that around 1,000 properties were bought without following the one-property rule, mainly in the Iskele, Esentepe, and Tatlisu areas. (This is my estimate, so don’t take it as grand investment advice.)

We expect a sharp drop in property prices, up to 30%, in the Iskele, Esentepe, and Tatlisu regions. This is because many properties will be sold to follow the new rules, increasing supply and lowering prices. The many new developments in these areas will also push prices down.

On the other hand, property prices in the Kyrenia region will likely keep rising slowly or, in the worst case, stay steady if purchased at market price. Limited new developments in this area and the new rules will not fit all properties with the current rules. Properties must have title deeds, and new projects without title deeds can only be sold until 2025. This will create a shortage in the eastern and western parts of Kyrenia, such as Catalkoy, Bellapais on the east and Lapta, Alsancak, Karsiyaka on the west, leading to price increases.

So, to answer the question: **Should I sell my house now?**
Yes, you should sell or transfer your multiple properties to someone you trust; otherwise, you may face fines up to 500,000 STG. You have two years to do that, but consider that a well-priced property gets sold in approximately six months. But if you have no issues with these regulations and you are not in these areas, I believe there is no need to panic. That being said, we don’t know if tomorrow we will have any global problems.

**Is it the right time to buy now in North Cyprus?**
My answer is no. The best time was yesterday. As they say, the best time to buy is now, but let me repeat: the right location, the right project, and the right price are the keys to successful investment and happy relocation. Some folks may need to sell their property quickly due to the new laws, so you may find good opportunities if you are interested in buying now.

If you want to be alerted to our new listings with below-market prices for quick sales, click the link below where it says “Yes, I am a shark investor” so we can notify you of hot sales.

AS I SAY, the new property laws will have mixed effects on the North Cyprus real estate market. Some areas will see a big drop in prices because of the forced sale of multiple properties owned by one person. Other areas with limited development OR RESALE inventory listings will see prices go up due to less supply. Buyers and investors should consider these factors when making decisions in the Northern Cyprus property market.

Cutting the story short, my main content in this video is for investors. When I insist on location and prices, it’s crucial for investment returns. However, if you are looking to retire in North Cyprus, location and price don’t matter as long as you are happy with where you will buy.

Cenap Turgut

If you have any questions about Northern Cyprus Property  market or need more help, please contact us. We are here to help you understand these new rules and keep your investments safe.

Join The Discussion

Compare listings