Buyer’s Guide to Northern Cyprus

Summary: With its near perfect climate, beautiful natural scenery and wealth of historic and cultural sites of interest, North Cyprus has seen a massive intensification of interest in its property sector in the past three years and yet real estate prices in Northern Cyprus remain the cheapest in the Med. This is Shelter Offshore's buyer's guide to Northern Cyprus.

Situated in the clear sparkling waters of the Mediterranean Sea, Northern Cyprus is truly an idyllic location for property investors, second homers and retirees alike.

With its near perfect climate, beautiful natural scenery and wealth of historic and cultural sites of interest, this particular Mediterranean destination has seen a massive intensification of interest in its property sector in the past three years and yet real estate prices in Northern Cyprus remain the cheapest in the Med.  This is Shelter Offshore’s buyer’s guide to Northern Cyprus.

Why NOW Is The Right Time To Buy Property In Northern Cyprus...

Since 2004 when the Republic of Cyprus joined the EU and the citizens of Northern Cyprus voted overwhelmingly in favour of a peaceful reunification of the island and for the acceptance of the terms of the Annan Plan, the situation across the whole of Cyprus has changed dramatically.

As a reward for voting ‘yes’ to the terms of the Annan Plan the citizens of the North have been rewarded with EU passports, EU and US economic aid and with an opening of direct trade routes - and so it finally seems that the years of political and economic isolation are coming to an end.

While there is still a long way to go to bring the two sides of Cyprus together there is an overwhelming feeling of optimism in Northern Cyprus and nowhere is this more prevalent than in the property sector. 

With property prices in the Turkish Republic of North Cyprus starting from just GBP 60,000 for an off plan three bedroom detached bungalow or GBP 35,000 for an off plan two bedroom apartment for example, prices are somewhere in the region of at least 50% cheaper than in southern Cyprus. 

For this very reason alone the amount of potential for profit and investment growth in North Cyprus is inimitable. 

The situation cannot remain where one half of an island prices its properties up to 50% lower than the other side and as it is not in the best interests of south Cyprus that prices in the north remain so low - why would anyone continue to buy in south Cyprus when they can get far more for far less on the north - the situation will not remain like this for long.

As proof of this fact - since 2004 property prices in Northern Cyprus have increased in many areas by up to 20%. 

But if you haven’t bought property in Northern Cyprus yet, fear not - prices have such a long way to go still! 

And those buying now are buying at a far safer time when certain types of title deeds in Northern Cyprus have been internationally recognised and when the entire island is benefiting from substantial foreign direct investment into infrastructure and amenities.

The Property Buying Process Explained

Because the whole of Cyprus was in the hands of the British for many years the legal system in Northern Cyprus draws a great deal from the traditional British legal system, and buyers who herald from the UK will find the buying process simple and easy to understand.

Firstly it’s important to understand all about the title deeds in Northern Cyprus and to ensure you’re buying property that you can legally own!  There’s a great article here: -

http://www.aboutnorthcyprus.com/index.php/feature/m/title-deeds-in-northern-cyprus/

...that explains all about the deeds.

Secondly you need to find estate agents in North Cyprus or developers who you can trust and who are building or selling in the areas you’re interested in.  One of the best places to start narrowing down your search is of course on the internet!  Take some time to look at which TRNC estate agents are offering properties you’re interested in and then arrange a trip to go out to Cyprus and meet up with your short list of agents and developers.

Don’t be afraid to ask them plenty of questions about the build quality, location, guarantees, title deeds etc., etc and when you finally find a property you like you will be asked to sign a preliminary contract and pay a deposit of up to 10%.

It is usually at this point that buyers appoint a solicitor.  Ensure you find your own solicitor - don’t use the builder, developer or estate agent’s solicitor as you need to make sure whoever you use is acting in your best interests.  Your lawyer will run the usual searches and surveys to make sure all is okay with the property you’re buying and often buyers from overseas give their solicitor power of attorney to go on and sign the final contract to buy if they find that everything is in order and the sale can go through.

If you’re buying off plan it is normal to make stage payments throughout the build process, if you’re buying a resale property it is usual to make final transfer of all monies upon contract completion.

After you have the keys to your property your permissions to own and your title deed transfer will have to go through and these are just standard legal and administrative procedures that can take anything from six months to a year to complete. 

Those buying property in Northern Cyprus now are benefiting from choice, value and quality immediately, and from a fantastic medium to long term investment vehicle. Properties are currently returning their owners anywhere in the region of 10% rental yields annually are they are growing in value by up to 20% a year.

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