Property Price Dynamics in Northern Cyprus: Trends and Factors
Real estate has always captured the attention of both investors and those seeking comfortable housing. Today, we’re closely examining the property price dynamics in Northern Cyprus, exploring the trends and factors influencing the market situation. We will also delve into a price growth table over the past decade, including the post-Covid-19 period.
Northern Cyprus, with its picturesque beaches, cultural heritage, and mild climate, has consistently attracted tourists and investors. Over the last decade, regions like İskele, Girne (also known as Kyrenia), Alsancak, Esentepe, and Lapta have shown significant growth in this sector. However, it’s important to note that the real estate market is sensitive to external and internal factors that directly impact prices.
In recent years, amidst a growing interest in the northern part of the island and the aforementioned regions, property price dynamics have demonstrated a confident upswing. Let’s consider several reasons “why”:
1. Passive Income from Purchasing Property in Northern Cyprus:
In Northern Cyprus, there are two types of rental options: short-term and long-term. By purchasing property within a managed complex, you can earn a stable passive income from renting out the property.
2. Foreign Investments in Northern Cyprus Real Estate:
Foreign investments also play a crucial role in property price dynamics. Investors from various countries are drawn to the favorable conditions and streamlined property purchase procedures in the northern part of the island, leading to increasing investments annually.
3. Demand for Seaside Residences Abroad:
Northern Cyprus is becoming an increasingly popular destination for those seeking residences abroad. Over the past five years, the northern part of the island has welcomed people from diverse cultures, contributing to the rise in prices.
In addition to the general trends, property prices in Northern Cyprus are also influenced by a range of factors:
1. Legislation of Northern Cyprus:
Local authorities are open to investor contributions in the island’s real estate. The parliament offers transparent laws regarding the acquisition and ownership of property by foreigners, as well as the attainment of Residency Permits.
2. Projects with developed infrastructure:
The development of infrastructure, tourist attractions, and entertainment venues enhances the appeal of regions and directly impacts property prices.
Speaking of specific figures, let’s compare the dynamics of the last 5 years: from 2018 to 2023, studio apartments and one-bedroom flats have grown on average by 233%, two-bedroom and three-bedroom units by 200%, and houses and villas by 240%.
|Average Price July 2023||Average Price 5 years ago||% of growth within 5 years||Average Price 10 years ago||% of growth within 10 years)|
|Студии и 1+1||£105.000||£45.000||233%||£16.000||656%|
|2+1 и 3+1||£150.000||£75.000||200%||£25.000||600%|
|Дома и виллы||£360.000||£150.000||240%||£110.000||327%|
Considering the dynamics of the last 10 years: from 2013 to 2023, studio apartments and one-bedroom flats have risen by an average of 656%, two-bedroom and three-bedroom units by 600%, and houses and villas by 327%.
The post-coronavirus era has been a breath of fresh air for Northern Cyprus, bringing both positive and negative aspects. What has changed?
Increased Cost of Living:
The cost of rent, housing purchases, groceries, utilities, and other expenses has risen.
2. Higher Tourist Influx:
Since the borders reopened, Northern Cyprus has been welcoming around a million people annually. The local authorities have even inaugurated a new terminal at Ercan Airport, capable of accommodating 2 million people per year.
3. Growth in Businesses and Infrastructure:
The aforementioned factors have led to the opening of numerous businesses in various sectors, contributing to an improved standard of living in the cities and regions of the northern part of the island.
The dynamics of property prices in Northern Cyprus are influenced by diverse factors, but the attractiveness of the northern part of the island remains unchanged. Regions continue to develop and appeal to both investors and those seeking a comfortable place to live.
While some anticipate a decrease in prices, the trend shows confident growth, making it an opportune time for property acquisition. However, before making a decision to purchase property in Northern Cyprus, it’s crucial to assess all information and consult with experts. Reach out to VELES company for detailed consultation and answers to all your questions.