North Cyprus property market - advantages and benefits of investment

Contents

North Cyprus property market - advantages and benefits of investment

In a short time, Northern Cyprus has become one of the most promising places for investment in residential and commercial properties. One of the reasons is that local currencies change their value in different countries. It naturally leads to the need for a long-term investment. Real estate is known to be one of the best options for saving and increasing the capital with the least risk.

Why do buyers choose real estate in North Cyprus?

The increase in the cost of real estate is almost 10% per year. These numbers are lower than in popular Turkish resorts or the southern part of Cyprus. Due to the low price, most of the residential properties from reliable developers are sold at the construction stage.
 
The Turkish Republic of Northern Cyprus is interested in tourism and additional financial income. Therefore, many large-scale infrastructure projects are taking place next years: tourist complexes, hotels, golf clubs, nightclubs and casinos, marinas, etc. Foreigners come here not only to have a good time but also to buy housing for permanent residence. Most of the properties on the market are apartments or houses. The price includes a dressing room, kitchen furniture and, in some cases, household appliances. It is worth noting the taxes, which create additional benefit for the purchase of housing in North Cyprus. For each m2 of space, the buyer has to pay only one TL (Turkish lira). These are all taxes that are required to be paid by the future owners of the property.
 

How do you purchase real estate in Cyprus?

There is an interesting fact. The island used to be a British colony once. Therefore, the regulations still have some specifics of British law. To own a home, a resident of another country has to have only a passport.
 
The next stage is making a deposit. The title documents of the seller or developer have to be checked. Then, both parties sign a contract. You need to pay for the services of a lawyer and 0.5% of the special stamp tax. The documentation goes to the Land Committee to receive confirmation of the legality of the agreement. After receiving confirmation, the client pays the rest of the amount. The payment has to be in cash. To obtain a loan, there is no need to present certificates and have a surety. Interestingly, loans in Northern Cyprus are not given by banks, but by the development companies themselves. Typically, the rate is around 7%.
 

How to get a residence permit?

Here, in the northern part of the island, it is easy to get a permanent residence. To do it, the owner of the property has to submit the relevant documents and obtain a residence permit within three months free of charge. For owners who are over 60 years old, it is not necessary to obtain a residence permit. A prerequisite is that the owner of the property opens a bank account with the required amount of money. It depends on the number of family members. One person needs to have at least 10,000 US dollars. Thus, you confirm your solvency. Also, you have to renew the residence permit every year. After seven years, one can obtain permanent citizenship.
 

What construction sites are the most profitable for investment?

As in any other country, it is very profitable to invest in commercial real estate - premises for offices, salons, shops, sports clubs, etc. In the future, it can bring a good income, given the grandiose plans for the active development of the region.
 
The second option is residential real estate, which, as we have already said, becomes more expensive every year. You can choose to live in your property or rent it out during the high season. Resort housing offers a chance of having about 8-10% profit. If you choose the right property, its location will help you successfully rent it out. This option implies a higher price and can bring about 15% per year.
 
For many buyers, the so-called Cyprus issue remains relevant. It is worth knowing that today most of the misunderstandings have already been resolved by the European Court of Justice. The Greeks have moved from the northern to the southern part and receive appropriate compensation. Another slight inconvenience is that you can get to Northern Cyprus only through Turkey, as the only state that has recognized its status. However, this inconvenience is more than offset by the low cost of real estate.
 
Today Northern Cyprus, despite its status, is an independent power that is actively establishing trade routes with many countries of Europe, Asia, America, Australia. Many real estate buyer are the British and residents of the Scandinavian countries, who calculate all the risks and benefits before taking such a step.
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