The Facts about Buying Property in North Cyprus

To gauge which of the world’s emerging property markets are currently most hotly in demand we like to examine which Amberlamb pages are currently appealing most to our site’s readers.  Of interest to us was a significant increase in the number of visitors seeking the facts about buying property in North Cyprus and so we approached local sources in the real estate industry in TRNC and they confirmed an intensification of interest in property for sale in Northern Cyprus in recent weeks.

Tourism numbers to the TRNC are apparently up at the start of the 2006 summer season; and of those arriving on the island a greater volume than ever are arriving with the specific purpose of finding investment property, retirement real estate or a second home abroad.  More property investors than ever are realizing the investment potential in North Cyprus it seems, and the island’s profile is subsequently being raised - but as a result there is a growing demand for a presentation of the facts about buying property in North Cyprus and so here’s Amberlamb’s review of the most important things to remember about the real estate market in TRNC.

Many people have been put off buying property in North Cyprus despite the excellent investment potential it seemingly represents as a commodity because they can’t get clarification of information about whether or not it is actually legal and safe to buy real estate on the Northern third of the island of Cyprus. 

Without entering into a political discussion we can report that there are actually two types of title deed in North Cyprus which are not only recognized by Turkey but by Greece, the Republic of (South) Cyprus and the international community at large.  If property in North Cyprus is being sold with either pre 1974 Turkish or pre 1974 foreign title deeds then the legality of the sale and purchase together with the security and validity of the title will be internationally recognized.  (Our article ‘The Property Buying Process in Northern Cyprus’ discusses all other types of title deed in depth.)

Properties and land for sale with pre 1974 Turkish or pre 1974 foreign title deeds are offered for sale at between a 10 and 40% premium however, and sometimes properties are marketed for sale as having such title deeds when in fact they hold exchange title!  It is essential that anyone considering making a purchase of real estate in North Cyprus employs the services of an independent solicitor – there are many reputable law offices in Kyrenia (Girne) and Nicosia (Lefkosia) – and that a thorough examination of the title deed for a given piece of immovable property is conducted.  Furthermore any preliminary purchase contract signed should be conditional to the solicitor’s confirmation that all is as expected with the title deeds.

The next most important fact about buying property in North Cyprus is understanding what is driving the tourism and real estate markets because whatever is driving demand in these markets will be largely responsible for the success or otherwise of any investment made into property in North Cyprus. 

Those buying property in North Cyprus as a fly-to-let holiday home investment should be aware that while TRNC’s Ercan airport has yet to receive the go-ahead for direct flights, an increasing number of tourists are flying into Larnaca and Paphos airports and crossing the border unrestricted into Northern Cyprus.  Furthermore Pegasos and Easyjet airlines are now providing cheap flights to North Cyprus with Easyjet flying from Luton into Sabiha Gokcen International Airport on the Anatolian shore of Istanbul and joining up with Pegasos cheap flights to Ercan.  If and when Ercan is allowed direct flights is no longer such a burning issue because those with properties to let out are receiving customers via the airports in South Cyprus and via cheap flights from London to North Cyprus meaning that demand exists for fly to let property in North Cyprus making this type of investment increasingly popular.

Those buying homes in TRNC to let out for the long term have increasing demand from students as the number and size of tertiary education institutes in North Cyprus increases annually.  Furthermore there has been an increase in the number of young individuals, couples and families moving to TRNC to live and work on the island who require property to let at least initially.  There is also continued and apparently continuous demand for long term lets from those awaiting the completion of properties that they have bought off plan and afforded by selling their former primary residence.

Anyone contemplating buying into the market for capital appreciation should be aware that their best chance of realizing strong property price growth in any real estate market in the world is by planning to hold assets for at least the medium term – and North Cyprus is no exception to this rule.  Whether the Cyprus problem is resolved or not is irrelevant to this discussion, but what is relevant is the matter of the price discrepancy between real estate in South and North Cyprus.  The two Cypriot economies cannot remain so far divided forever and therefore as the property economies balance out property prices in North Cyprus will rise – however, as stated, those purely in the market for capital appreciation should plan on holding their property assets for the medium to long term.

And finally, to keep fully abreast of developments in the real estate and tourism industries in TRNC and to find out the latest independent information about living and buying property in North Cyprus keep checking back to Amberlamb. 

Special Reports: Property News for North Cyprus

Northern Cyprus Property Buying Guide
Investors interested in property in Northern Cyprus should make themselves aware of the entire property buying process before committing themselves

Northern Cyprus a Property Investor’s Guide
A guide to investment into internationally recognised property in the real estate market in Northern Cyprus

Northern Cyprus Property Investment Potential
Of all the Mediterranean destinations Northern Cyprus has the most potential for substantial gains and income for property investors