Investment Property in Northern Cyprus

Published on 19 January 2005
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As property investors look ever further for new markets with high growth potential many are setting their sights firmly on North Cyprus (TRNC).

With property prices for homes still as low as 30% of the cost of a villa or apartment in other Mediterranean resorts such as Spain, a great opportunity exists for both investors and people seeking a second or permanent home in the sun.

More and more people are discovering the wealth of beauty, history and culture that Northern Cyprus has to offer; the absence of high rise building and the presence of thousands of years of history put Cyprus on top of any prospective Mediterranean home seeker’s agenda.

About North Cyprus

Northern Cyprus is located in the Eastern Mediterranean just 70 miles south of its closest neighbour Turkey; on a clear day it is possible to see the huge mountain peaks of the Turkish mainland across the beautiful blue waters of the Mediterranean. The Turkish call Cyprus the Green Island because unlike many Mediterranean islands a reasonable rainfall during the winter months ensures that nature is fully restored during the spring months. From February to April Cyprus is green and lush with abundant varieties of orchids and many other wild flowers adding a mass of vivid colours to the island.

The summer months are long and hot, with never ending blue skies and warm sultry evenings that are so pleasant and peaceful that many visitors to the island confess to never wanting to leave. Blend the heavenly climate with fine Cypriot cuisine and the friendly hospitality of the Turkish Cypriot community and it’s no wonder that so many people who visit, return quickly to make it their new home in the sun.

New Investment in North Cyprus

Over the past couple of years the amount of investment in North Cyprus has increased significantly. Since North Cyprus voted ‘yes’ to the Annan plan in 2004 the EU have provided grants and will continue to invest heavily in the forthcoming years into infrastructure redevelopment. This year sees new power stations coming on line that will hopefully put an end to the power cuts that Northern Cypriots have dealt with for many years. New hotels are being built including 5 star hotels that offer levels of luxury and comfort that would be hard to find anywhere on the Mediterranean. Just visiting the beautiful old town of Kyrenia and seeing the narrow streets being carefully restored and the regular new openings of ever higher quality restaurants soon convince many would be property buyers that now is the time to act.

How long will it last?

Homes and real estate will always be available, however the huge investment potential may be relatively short lived, prices tend to catch up quickly and now that the word is out about the value for money offered in purchasing property in TRNC it will only be a matter of time before momentum gathers and the opportunities diminish, therefore if you are serious about finding a second home, a retirement home or an investment property in Cyprus now would be the best time to visit.

A brief word about the “Cyprus Problem”

You’re probably aware of this issue and have seen many press articles about the illegal purchase of property in North Cyprus. Shelter Offshore is not qualified to give an authoritative opinion about all types of property purchase deal; however, we can tell you that both the Greek and Turkish Cypriot communities agree that certain types of land purchase in the north are 100% legal with correct application.

Internationally recognised legal property purchase in Northern Cyprus

1: Property that has a clean freehold title. Property that was owned by British or foreign nationals pre 1974. The title deed (kocan) must clearly state this. Such a property purchase is internationally recognised and you will not encounter any problems whatsoever.

2: Clean freehold title “Turkish Cypriot” pre 1974 where deeds clearly state that the property was owned by Turkish Cypriots before 1974, again such a property purchase is 100% safe.

Deeds subject to a final resolution

The next types of deed are TRNC deeds, in the majority of cases they can be considered safe, however there is an element of risk until a final resolution is made. We recommend that you visit Cyprus and speak to a lawyer or barrister so that you are able to make your own appraisal of the situation. No one can tell you the exact outcome, however it is a point to remember that the two communities are moving ever closer to a peaceful and long term resolution, therefore extremes in either direction are highly unlikely.

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