North Cyprus: Poised to be Europe’s Number 1 Property Market?

A recent article in Forbes magazine has revealed some pretty fascinating findings relating to the best and worst property markets in Europe in 2007 - 2008.  Unsurprisingly the report has Ireland in first place as the biggest loser in terms of price movements, but the report, which is based on findings from the Royal Institute of Chartered Surveyors, has Cyprus in the number two spot currently for fastest-growing housing markets in Europe.

Adding to these findings is the fact that the property market in Northern Cyprus has just enjoyed its busiest two month period since 2004 according to those in the know, which perhaps suggests that North Cyprus is actually poised to be Europe’s number 1 property market in 2008?

The report from Forbes discusses Cyprus as a whole, but the photograph it uses to illustrate the island is of the Northern Coast.  This is significant because it is in Northern Cyprus that there has been a strong amount of positive movement in the market in terms of buyer activity during the first quarter of 2008, with the strongest movements made in the last two months to date. 

Buoyed up by positive developments on the political front, European investors have been heading to Ercan airport and the Northern Coast for inspection trips and to enquire about purchasing anything from villas to commercial premises.  And they are following hot on the heels of the Russians.

As Lance Nelson from Jet2let recently reported in an article in the Telegraph, if you as an investor want to know where to buy for continued positive price growth even in these trying times, follow the Russians!  And they are land banking and investing in significant residential, resort and infrastructure projects in Northern Cyprus.

The number of bookings with estate agents on the island for inspection trips and viewings later in the year are up significantly on 2007 figures, and it seems there is a strong level of sustained interest in North Cyprus property in 2008 so far.  In part local agents believe this has a lot to do with people hoping to cash in quickly before political movements make the market move upwards dramatically, and in part they believe that it is because mortgage financing is finally available on pre 1974 title deed property.  This is already having a positive effect on the prices of real estate with this type of deed, but it also bodes well for the long term status of the market as a whole.

So, if you were to take a bet on it, would you have Northern Cyprus down as Europe’s number 1 property market in 2008?  No?  Well, perhaps you should think again my friend!!