Even before January when southern Cyprus joined the Euro it was far cheaper to buy property in North Cyprus. Naturally this has to do with the fact the south has better infrastructure and is more easily accessible – but as anyone who has visited the North knows, you actually get far more for your money than just cash savings when you buy real estate in Northern Cyprus…
You get the best beaches, the more open landscape, more land with your villa, more square meters of property – and here’s a bonus – the euro’s recent surge has boosted the huge price gulf between property prices in North and South Cyprus by another 16% because property in North Cyprus is priced in pounds sterling, whereas property in Southern Cyprus is priced in the expensive euro.
In the last year to date the value of the euro in relation to the pound has risen 16%...this is because currency investor confidence in the pound was lost when the sub-prime mortgage market in America began to bite and people realised that there could be a serious knock on effect in the UK. Compounding this issue was the Northern Rock debacle and putting the lid pretty much on the situation is the fact that house prices in the UK are not exactly rising rapidly!
So, the euro has surged to new and heady heights against the pound…bad luck for anyone from Britain who wants to buy a property anywhere in the eurozone such as in Southern Cyprus for example! Good news for anyone who wants to buy in pounds – why? Because if you buy now, the expectation is that within a year or so the pound will bounce back against the euro because the British economy’s growth is predicted by the IMF to outgrow that of the eurozone’s.
So, all of a sudden, not only is property in Northern Cyprus about two thirds the price of real estate in Southern Cyprus…but it is a further 16% discounted.
The irony doesn’t stop there either – just when it is getting nigh on impossible to raise mortgages to buy property in the UK or in Europe, mortgages are Northern Cyprus are suddenly available, and the take up rate has been exceptional! Lenders are well aware that the situation in Cyprus is changing fast and for the better, and they are diversifying their risk by entering a whole new marketplace.
It seems that the time could not actually be better to consider buying a property in North Cyprus!
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