North Cyprus Property market today and Tomorrow 26.06.09
The property market in North Cyprus has seen steady growth over the last few years since the opening in 2003 of the border between Northern Cyprus and the South Cyprus of the island. This is true and can be seen certainly in some areas, more so than others, where prices have risen due to many different factors. If you are an investor, looking to retire, or one of the many holiday makers, choosing the right location can make all the difference.
Today the investor rental market is good due to the high foreign student population, with universities located in Kyrenia and other towns, with a total population of around 35,000 students. A net income is attainable of around 8-10% not including a minimum cap growth return of 25% per annum, better than actually having your money in the bank. North Cyprus standings in this area show that it is 3rd behind Dubai and Germany.
Growth in property prices over the last few years can also be seen with the sale of completed resale homes, due in most part to the lack of available land for new projects, land price increases and stringent building restrictions. It is estimated that aprox 200,000 people who are looking for a home abroad are choosing North Cyprus for its hospitality and climate not withstanding that it is still one of the cheapest places to buy a property in the sun. The British Ex-pat population of the South of the island is estimated at around 55,000 and the current population in the North is around 6,500 permanent residents.
Globally property markets have recently seen a down-turn due to the so called credit crunch, but as the prices of homes in the North Cyprus of the island are a fraction of what they are in the South and in general around the world the property market in North Cyprus has held its own. In actual fact has seen an upturn in comparison with this time last year. Property prices as well in the Northern Cyprus due to the reasons above with limited available land and what land is now available being sold at a premium, quite evident in the lack of new projects coming into the market place, this will not only help sustain the current values but continue to yield a cap growth year on year. The sustainability of the prices and capital growth has also in part been compounded with a strong Euro against the British pound, so buyers with Sterling currency are looking to the North Cyprus since the Euro was introduced in January 2008 in the South Cyprus. All house prices and rental money in the T.R.N.C is in British Pounds.
With Cyprus being an island the problems associated with over-building on the mainland areas across the Mediterranean, too many homes and not enough customers should not pose a problem in respect to house prices and rental here. Northern Cyprus development Land to build on these days comes at a premium and prices have soared. The simple fact of supply and demand affecting the market can be seen quite easily in this way.
The European Union recently has given a boost to the North Cyprus infrastructure in awarding money towards vital infrastructure improvements and this has spurred the private investors who have also seen a trend developing. This can be seen in such projects as the recently opened 18 whole championship golf course club house and marina at kucuk erenkoy.
North Cyprus tourism is an ever increasing quantity, a destination for the sun lovers and with much to do and see in terms of variety, the weather and climate make it a desirable destination, with flights from the UK and Turkey into the ultra modern airport in the North cyprusor the option to fly via Larnaca and travel across the border.
There are many Cypriots living abroad in the UK, America and Australia, who one day may wish to return to the island to visit older relatives and also buy retirement property for them selves as investment. The Middle East sees many ex pats living and working in the Saudi Arabian States looking to invest as they wish to escape the taxation of the UK economy. Putting money into property has always been seen as good investment. Even we see first time buyers who are not able to afford in the UK looking at a small apartment or maybe an affordable villa for a fraction of what they could look to buy at home.
Politically the future is positive, both sides are currently talking and moving forward to a mutual settlement that has divided the island in the past. Signs of this are the new borders being opened as a sign of trust on both sides.
And the TRNC is currently enjoying all this without the luxury of Direct flights so just imagine how the face of property , demand and prices will change when and it is inevitable we get Direct Flights.
A word on Direct flights! This is a popular topic however do we really want them?? people are moving here because of its affordability, Beauty yes Northern Cyprus has one of the most beautiful mountain ranges anywhere in the world and lets not get started on the rolling miles of glorious coastline, lack of prejudice, lack of crime, lack of crowded streets lack of crowded beaches, genuine hospitality at every turn the Northern Turkish Cypriots I have to say are a welcoming bunch! Do we really want to be a package holiday destination? Just food for thought……..
The Future is bright the future is North Cyprus………….just some of the things in the pipeline within the not too distant future in the Beautiful TRNC ……….New marina and Golf Course, not forgetting the kids of course there are plans to increase activities available to the children including new Go cart tracks and fun play areas with socializing areas for the parents!! The newly planned hotels being built to cope with the increase in tourism are being built with the best facilities in mind and best services. Not forgetting the new boutique style shops opening up and restaurants along the Essentepe thru karsiyaka coastal road and most importantly New legislation for North Cyprus Estate agents Union and builders alike has actually now made the TRNC one of the safest places to buy a property abroad!
