In Northern Cyprus, where Mediterranean charm blends with modern realities, real estate is becoming more than just an asset category – it’s a lifestyle and a source of opportunities.
To delve into the real estate market in Cyprus, we headed straight to the island and spoke with analysts from VELES PROPERTY, a company specializing in property development and sales in Northern Cyprus. We discussed the prospects and risks in this field.
Northern Cyprus is divided into five districts, and we recommend visiting each one to see the beauty firsthand. The Iskele district particularly caught our attention, surrounded by the Mediterranean Sea on all sides, but more on that later.
This article is filled with numerous figures, so our introduction is essential to break up the text.
The data was provided to us by the director of VELES PROPERTY, Julia Ozerdje.
Analysis of the Real Estate Market in Northern Cyprus
Julia Ozerdje provided us with the most current data for the second quarter of 2023.
Now, let’s dive into some dry statistics that reflect the prospects of Northern Cyprus. Investments require such pragmatism.
- The average cost of an apartment ranges from £1700 to £2200 per square meter, while villas will cost you between £3000 – £4500.
- Price ranges vary. For instance, properties on the secondary market requiring improvements can be found at much lower prices.
- This year, rental prices have increased across the country by an average of 10 percent per quarter.
- At first glance, it might take about 16 years to recoup an investment in long-term rental properties. In reality, considering the rise in property values and rental rates, the payback period can be expected in as little as 5 years.
- Overall, over the last 5 years, property prices have surged by 25 percent and continue to grow steadily.
Iskele: The Golden Zone of Northern Cyprus and Its Influencing Factors
Julia Ozerdje mentioned that property prices are rising in every district of Northern Cyprus, with the lowest figures in the Nicosia district and one of the highest in Iskele. Our consultant assures us that this is the most promising area for investments. In 2023, property prices in Iskele increased by 11.2%. This growth can be attributed to several reasons:
- Fantastic location: Iskele is surrounded by the sea on all sides.
- Tourist attractiveness: Beautiful beaches and ancient landmarks can be found here.
- Modern infrastructure: All essential social amenities are nearby, ensuring a comfortable life within the district.
These factors make Iskele a coveted area in the Northern Cyprus real estate market. However, it’s essential not to overlook other districts that are also actively developing. Northern Cyprus offers options to satisfy everyone’s needs.
Speaking of risks, Julia Ozerdje highlighted only one:
Avoid buying homes that belonged to Greek Cypriots before 1974. Such transactions won’t be considered valid, and you’ll lose property rights. Therefore, experts from the investment real estate agency in Northern Cyprus Veles Property recommend thoroughly examining property documents before purchasing and can assist you with this matter.
Investments in the Cyprus real estate market are reliable because it’s not just a piece of land with picturesque landscapes; it’s a place where real estate becomes the key to investments, opening the door to a world of possibilities.