The property market in North Cyprus has experienced a remarkable shift in the past year, transforming into a sellers’ market, particularly for cash buyers. This trend is akin to other booming Mediterranean property markets post-COVID. Notably, there is a shortage of affordable “old price” properties, especially villas built 10-18 years ago, which are in high demand and becoming more expensive.
For property investors, this remains an opportune time to buy, as prices continue to rise. However, acting swiftly is crucial to securing the best deals in this competitive market. The surge in North Cyprus’ property market is not on par with Dubai’s (yet!), but it has come a long way in a short time. As more investors flock to the region, the market is expected to grow further, making it an exciting prospect for property enthusiasts.
Key details about the North Cyprus property market:
Property prices vary from €100,000, making it an attractive and affordable option compared to other European countries.
Foreign investment has increased due to the government’s measures, including a citizenship program and tax incentives, with British and Russian buyers being the most active.
Properties range from apartments, villas, townhouses, commercial properties, to land for development, with coastal properties being highly sought after.
Non-Cypriot residents can own property in North Cyprus, but there are restrictions on land purchase, requiring government permission in certain areas.
Mortgages are available, but terms and conditions vary depending on the lender and individual financial situations.
Buyers should expect to pay fees and taxes, ranging from 5% to 15% of the property price, including transfer fees, stamp duty, legal fees, and agent fees.
The rental market is growing fast, providing potential rental yields of around 10%, depending on the property type, location, and condition.
In 2023, the North Cyprus real estate market continues to demonstrate a positive outlook for property investors and owners. The surge in prices over the past year has been remarkable, largely fueled by the increasing interest from Turkish citizens and investors from the United Kingdom, Russia, Germany, Ukraine, and the Middle East. With prices soaring and inching closer to Dubai’s property prices, the market is drawing comparisons and has earned the nickname “new Mallorca” of the 2000s.
As demand continues to rise while land supply remains limited, experts predict that North Cyprus property prices may rise similarly to Spain and Dubai in the coming years. The region’s unique blend of stunning natural landscapes, a favorable investment climate, and long-term growth potential have attracted discerning buyers from various parts of the world.
The influx of international buyers has driven rapid price escalation, doubling property prices within the past year. This transformation has turned North Cyprus into a highly lucrative investment opportunity. However, as prices rise, concerns about overpriced properties and ill-informed investments arise. To mitigate risks and ensure secure investments, buyers are advised to work with trusted local-based real estate agencies like Senilk Real Estate, possessing in-depth knowledge of the Northern Cyprus market.
Several factors contribute to the increasing demand and soaring property prices in North Cyprus. After the lockdown, the region experienced steady price growth, offering more affordability compared to many other Mediterranean destinations. Prime locations like Esentepe, Alsancak, Catalkoy, Bafra, Lapta, Iskele, and Karpaz are particularly sought after, contributing to price appreciation. With an improving economy and ongoing development projects, property prices are projected to maintain a positive trajectory in 2023, making it an opportune time for investors and potential homeowners.
North Cyprus presents a range of investment opportunities for those seeking to diversify their portfolio or capitalize on the thriving real estate market. The government’s commitment to promoting foreign investment, along with favorable tax incentives and residency programs, adds to the region’s allure. Infrastructure development is also driving the growth and attractiveness of the market, with ongoing projects enhancing the region’s livability and accessibility.
Moreover, the tourism sector plays a significant role in North Cyprus’ real estate market, attracting a substantial number of visitors each year. The growth in tourism not only drives demand for short-term rental properties but also creates opportunities for commercial investments such as hotels, resorts, and holiday homes. With ongoing efforts to promote North Cyprus as a year-round destination and the focus on sustainable development and eco-friendly practices, the region’s real estate market is poised for continued growth and appeal to environmentally conscious buyers and investors.
In conclusion, the property market in North Cyprus has undergone significant changes, offering lucrative opportunities for buyers and investors. Despite the current challenges with a shortage of affordable properties, the rising prices and potential growth make North Cyprus an appealing destination for property investment. Acting quickly and seeking professional advice are advisable for securing the best available properties in this evolving market.
