Property prices in Northern Cyprus have been slowly but steadily rising over the past five years and are projected to continue rising until they come in line with the prices across the rest of the Southern Mediterranean region.
It’s likely that these price increases will remain steady rather than surging because of the unique political situation in Cyprus, and it means that property in North Cyprus is probably one of the best bets for consistent long term capital yield, with villas in Northern Cyprus offering the best additional potential from the rental yield market.
The proof that the market will steadily rise rather than booming in the short term came this year when the market readjusted itself from last year’s sudden and unrealistic mini boom. The boom was unsustainable and resulted in a short term slow down while the market readjusted and reabsorbed the price rises introduced by some developers. Now once again the real estate market is stable and because it is seeing constant and strong foreign direct inward investment it is rising steadily once again.
Villas in Northern Cyprus are the most popular commodity in the real estate market at the moment because of the current affordability of property in the TRNC in general. Major investment into apartments and duplexes only comes when villas are out of most people’s financial reach or space for villa development is limited. Because the abundance of undeveloped land in North Cyprus is high and land costs are generally low in comparison to elsewhere in the entire Mediterranean region, villa prices remain within reach for most investors.
If you want to buy property in North Cyprus you can expect to pay from GBP 100,000 to GBP 150,000 for a well constructed three to four bedroom villa home on a plot large enough for a pool in the most desirable areas of Northern Cyprus which include Ozankoy, Bellapais and the outskirts of Kyrenia. These prices can of course go up to in excess of GBP 200,000 with the addition of special features including underground car parking, Jacuzzis, roof terraces, outdoor spa baths, polished marble flooring finishes etc., etc.
If you simply want to purchase a basic villa suitable for summer living and letting which is close to the beach or a pool but not necessarily close to the major town of Kyrenia then prices can drop as low as GBP 50,000 which makes affording to purchase a villa in Northern Cyprus within the reach of many people nowadays.
If you are buying to let in North Cyprus you must think about the people you will be renting your villa to. If you are hoping to attract a family market for short term summer lets your villa will need to have a pool and be close to the facilities and amenities offered in and around Kyrenia. If on the other hand you’re looking at letting out your property for most of the year to older couples or retirees who are looking for a relaxing holiday away from it all and where they can have access to the beauty and nature Northern Cyprus is famous for you may be able to purchase a more remote property with fewer facilities for far less money and still service your target market.
In terms of what you can expect to generate in yield from renting out your villa in North Cyprus, a modern villa sleeping up to six people which is located near Bellapais and which offers access to a communal pool, satellite TV and air conditioning throughout can be rented for between GBP 450 a week to GBP 550 a week throughout the summer months. Such a property could be let out for between GBP 500 a month to GBP 600 a month for long term letting.
