North cyprus: the time is now

10 reasons why now is an excellent time to invest in North Cyprus…

North Cyprus has long been overlooked as an investment opportunity, with buyers looking to its Mediterranean neighbours instead. However, in light of ongoing reunification talks, there are a number of reasons why investing in North Cyprus right now could be a good move.

1. Reunification on the agenda

Last week, the Cyprus President, Demetris Christofias met Turkish Cypriot leader Mehmet Ali Talat to discuss upcoming reunification talks.  The two community leaders reaffirmed their commitment to a bi-zonal federation.  With the likelihood of reunification greater than ever, and the property market already strong, buying in North Cyprus now, before unification, will be extremely advantageous to property investors.

Should reunification happen, property prices will be given a substantial boost, as tourist levels are set to rise further, as the country opens up by way of direct flights into Ercan Airport in North Cyprus.  

2. Affordable properties

North Cyprus provides investment opportunities which more than rival established European destinations.  Investors will be able to secure a property at 50% less than South Cyprus and a third of the price of Spain, a definite plus in today’s market. 

Buyers who invest now will be able to capitalise on the current artificially deflated market, as a result of North Cyprus’ unusual yet stable political situation and can expect capital appreciation of 15-20% per annum over the next five years. 

Buyers can also take advantage of the favourable exchange rates of the Turkish Lira, in stark contrast to the strong euro.

3. Improved infrastructure

Since Turkish Cypriots voted in favour of the UN backed reunification of the country, North Cyprus has benefited from €400million economic aid for improving infrastructure¹. The government is also actively encouraging the development of the region as a fiscal and business hub.

4. Taxes

For those looking to retire to Cyprus, there are tax advantages. North Cyprus removed inheritance tax in 2006.  Furthermore, every individual or household is exempt of Capital Gains Tax once in their lifetime on the sale of one property.

5. Tourist hotspot

North Cyprus which is more tranquil and traditional than the South, with long-beaches, hilltop castles and ancient sites, is set to benefit from a surge of tourists from 433,000 to 2million in the next five years, as steps are made to unify Cyprus and its attractions are realised.

Famagusta Bay, which occupies most of the Eastern Coast of North Cyprus, offers long stretches of sand with watersports facilities already established. North Cyprus is also home to classical sites of Salamis, the Karpas Peninsula and Kyrenia’s Venetian fort and quay. 

6. Investor confidence

Since the borders opened between the North and South, applications from foreigners to purchase property in the North have increased ten-fold² as buyers look to secure properties for investment, as well as retirement and holiday homes.  Property International has already sold 20% of Palm Resort’s properties from the start of this year.    

7. Unspoilt

While North Cyprus is experiencing a property boom, the island has retained the charm and beauty which attracts both tourists and homebuyers.  The Turkish Cypriot government has strict planning and building regulations to restrict developments on, or too close to, the beach or in areas of outstanding natural beauty. 

High-rise hotels and apartments which dominate some European coastlines are strictly prohibited. Since May 2005, constructions higher than 170m above sea-level have not been permitted.

8. Five star luxury

Many developments in North Cyprus are being designed and built to an extremely high standard. There are a growing number of five star luxury hotel complexes across the region, such as the 2,500 bed Artemis Otel hotel. Additional planned complexes are attracting worldwide leading companies such as Hilton and Sheridan.

9. Climate  

North Cyprus experiences 320 days sunshine per year, making it a popular location for sun-seeking tourists and people looking to move to a warmer climate.

10. Added ease for investors

Investors in North Cyprus will also benefit from an English legal system, English widely spoken throughout the county and left hand-side driving.

Dermot O’Kane, Director of Property International, enthused:  “North Cyprus has long been overlooked by investors, who have traditionally bought in the South of the island.  The North has much more to offer, however.  It has not experienced the over development which has spoilt much of the beauty of the South, and the North Cypriot government has learnt from this, putting restrictions on new developments in place to protect the areas of outstanding natural beauty. 

“Not only does the region offer fantastic beaches, weather and beautiful scenery, but the cost of living is significantly lower than in the UK, and both property prices and rental yields are set to soar as further steps towards reunification of the island are made.”