Investment in north Cyprus is becoming one of the most celebrated overseas investment opportunities to have occurred in recent years, with property prices in the Turkish Cypriot north around a third and a half lower than those in the Republic of Cyprus, and far lower than those in other Mediterranean countries, this northern third of ancient Cyprus is becoming increasingly popular with both holiday makers, property investors and developers.
As the potential of north Cyprus as a holiday destination is now grabbing the attention of those looking into buying rental properties abroad thanks to the opening of the Green Line a few years ago – meaning that tourists now longer have to fly to Turkey and then make a connecting flight into North Cyprus – and also thanks to the growing amount of interest that the national media has been taking in the attraction to tourists that North Cyprus boasts.
As well as north Cyprus becoming well positioned in the attention of those booking holidays, the property market in the north of the Mediterranean island also poses longer term attractions to those interested in buying investment property thanks to an expectation that the high yearly capital appreciation values will continue well into the future.
Property prices have been climbing in northern Cyprus since 2003 when the property market was made accessible to overseas property investors. In fact, in one year prices rose by 20% – an unprecedented bump which firmly placed the north of the island on the map for overseas investment. In 2008, even against the background of international economic slowdown, property in north Cyprus is forecast to appreciate by 10%, only slightly down from last year’s 12%.
The division of the island that has seen Turkish North Cyprus completely separated from the Greek Republic of Cyprus for the last thirty years has affected the economy of the north, and that has had an immediate and obvious knock on effect on local property prices.
Now many property investors and developers are placing money into property in north Cyprus in anticipation for a bump in values similar to that that occurred in 2003, for the simple reason that the island looks set to continue moving forward toward reunification. Both Mehmet Ali Talat, the Turkish Cypriot leader, and his Greek Cypriot counterpart Demetris Christofias, ran to power on their pro-reunification stance, and both met in the months between Christofias’s election in February and the official start of reunification talks in September this year more times that the pair’s predecessors met in their entire political career.
With Turkey’s EU membership officially up for discussion again next year Ankara’s responses to the diplomacy on Cyprus are being tightly scrutinised. However, so far they seem positive, an appearance which is reconfirmed by the country’s recent admission into the UN Security Council for 2009, a position which it has not held since 1961.
The reunification of the island would boost the current rise in property prices in north Cyprus exponentially, as the international trade isolation that has dampened the development of markets for the last thirty years would disappear. For those buying investment property north Cyprus outshines traditional overseas investment locations both in terms of investment returns and the amount needed to enter the property market. As an additional consideration for property investors is the fact that property in north Cyprus is bought in pounds Sterling, meaning that the depreciation that currently welcomes the shift from pounds into Euros is neatly avoided.
Want to read more about Buying Investment Property in north Cyprus? Check out www.whiterocksbafra.com where news on property in Cyprus and on overseas investment in general is regularly updated.
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