Updated: Aug 22, 2021
Why Cyprus is Advantageous for Real Estate Investment?
Recently, North Cyprus has become a star shining in real estate investments. Of course, education and tourism investments lie in the infrastructure of this shining. Let us examine the causes of this rise together.
The recent market instability and unrest in Turkey and policies. With the decline in the real estate sector, the decrease in rental income and therefore the rental depreciation times have increased considerably. Cyprus known as Motherland is case attracted the attention of real estate investors in Turkey. In North Cyprus, where peace is at its highest level, we share the reasons for investing below you.
1- Constantly rising values in Cyprus:
In the last five years in North Cyprus, house prices have risen by 10% – 12% a year. For example, in 2012, the 45-50 m2 studio apartments sold between 22,000 – 24,000 pounds in the Iskele region are being sold today in the vicinity of 35,000 pounds and in the completed apartments around 40,000 pounds. In the same way, 2 + 1 Apartments sold at 35.000 pounds at Famagusta Center are now around 55,000 pounds. This ascension in almost every part of the island does not run out of sight.
2- Rental Return:
One of the most important reasons for investing in Northern Cyprus is rental depreciation. In a city like Istanbul, the minimum rental depreciation period is 25 years, while in Northern Cyprus this period varies between 10-16 years. For example, in Kyrenia, a monthly rental income of 2 + 1 houses is around 500 pounds. That means 6000 pounds per year. The increase in apartment prices in Kyrenia real estate market has increased the rent amortization period by 16 years. The most important reason for this is the restriction of construction rights along with the orders and the excessive price of land. But there are still high rent depreciation areas. In Famagusta and Nicosia rent depreciation starts from 12 years. In a mega city such as Istanbul, rental depreciation periods are 25-30 years, while rental depreciation times in North Cyprus are quite attractive for investors.
3- Quality Education Center:
There are approximately 100.000 local and foreign students in Cyprus. Starting from secondary and high school, these students receive undergraduate, graduate and doctoral education in our universities. The universities accepted by Council of Higher Education (YOK) and offering education in world education standards are the lifeblood of the TRNC economy. In recent years, since primary school education, there has been an increase in demand for private schools offering foreign language-based education. Especially families who are concerned about the education system in Turkey, moved to Northern Cyprus, half the price of private schools in Turkey have started their children to these schools. As a result, children grow up in a peaceful and secure environment in Northern Cyprus, and they are also trained in English-based Cambridge standards.
4- North Cyprus’s Possibility to Enter the EU:
Cyprus peace talks have been going on for years. If the Cyprus problem is resolved, North Cyprus will enter the European Union. In the case of favorable conditions, those who invest in real estate in northern Cyprus will be deemed to have property in the EU land and will be able to obtain a residence permit. The fact that house prices are 4 times higher than in Northern Cyprus and Southern Cyprus is one of the most important points attracting real estate investors. Currently, almost 90% of Turkish Cypriots holding EU passports. I can say that with the emergence of natural gas deposits in Cyprus lands and seas, the solution is not compulsory and not at all remote. Many local and foreign investors who believe in it continue to invest quickly. The most important point that should not be forgotten is that it is known that the Turkish Cypriots have legal rights to all the rights of the Greek Cypriots. Therefore, the solution is not at all remote.
5- The Characteristics of Cypriot People:
Apart from the reasons mentioned above, I think one of the most important reasons is that the people of Cyprus are friendly, educated and tolerant people. The people of Cyprus are nationalist, democratic and social people. Our people, who love to help, meet their guests from many nations with sincerity and friendliness without discrimination. Because the island is small, people have social values, and they do not do things that easily hurt their reputation. I can say that our society is honest and trustworthy at a high level. Cypriots can not tolerate injustice. In the municipalities, whoever makes a mistake or mistakes a judge, they will never forget to vocalize, if necessary, to fall into the squares. It is not possible to divide the people who believe in democracy, to get in and separate them.