Why Investing in North Cyprus

The demand for residential properties in North Cyprus in 2023 is vibrant and growing, influenced by a multitude of factors:

• Natural beauty : The preservation of North Cyprus's pristine beaches, plains, and mountains due to low population density, coupled with the Mediterranean climate, enhances its allure for potential investors and residents alike.
• Low crime rate :
• Based on the study conducted at 2015 by New York-based global insurance company, North Cyprus considered as one of the safest places to live and visit among countries with a population of under 5 million. All the reports are indicating that North Cyprus has a very low crime rate, especially compared to other countries in the region. This is due to a number of factors, including the country's strong police force, its low population density, and its traditional values of hospitality and respect. According to some specific statistics:
• The murder rate in North Cyprus is 0.9 per 100,000 people, which is significantly lower than the global average of 6.2 per 100,000 people. The robbery rate in North Cyprus is 0.3 per 100,000 people, which is also significantly lower than the global average of 6.9 per 100,000 people
• Affordable living conditions : With a cost of living lower than most European countries, North Cyprus presents an attractive option for investment and habitation. Some collected information from different sources suggested that the cost of living in North Cyprus is significantly lower than in most European countries. For example, the cost of food, housing, transportation, and utilities is typically 20-30% lower in North Cyprus than in Western Europe.
• Property affordability: The average property prices in TRNC are significantly more affordable than those in European countries, ranging from 700 GBP per M2 in city centers to 2000 GBP per M2 outside of city centers in luxurious residential complex.
• Room for development : Despite its existing developments, North Cyprus still possesses a potential for further growth due to its low population density and ratio of existing land by constructed land (18%). Investing in the real estate and hospitality sectors could be fruitful as the country's popularity continues to rise
• Rental income potential : Properties, especially those near the coastline, can yield high return rates due to the country's appeal as a holiday destination. Daily rental prices range from 50 GBP to 400 GBP based on the property's features. Annual rental prices for new studio flat in Iskele region start from at least 4000 GB.
• Increasing foreign investment : The TRNC is attracting substantial foreign investment due to its strategic location, favorable climate, and foreign investment-friendly government policies. Until 2022, Turkish Republic citizens were the majority of buyers. However, the recent trend has shifted towards Russian and Iranian buyers, with the proportion of Turkish buyers dropping from 90% to around 70%. The leading buyers of property in TRNC were from Russian-speaking countries, Iran, Germany, the UK, and Turkey. This shift was notably influenced by geopolitical factors, such as sanctions imposed on Russian investors.
• Infrastructure development: Governmental investment in infrastructure has made the region more accessible and livable, boosting its appeal as a real estate investment destination. For instance, one of the most notable infrastructure projects in the TRNC is the development of the new Ercan International Airport. This airport, the largest on the island of Cyprus, has a capacity to handle up to 10 million passengers per year, which can be expanded to 15 million. The project, which cost €450 million, makes Ercan the single largest investment and the largest infrastructure project ever undertaken in the TRNC. Also, The European Union has been actively involved in improving the infrastructure in Northern Cyprus. This includes projects aimed at expanding and enhancing infrastructure, particularly in areas such as energy, transport, water supply, and telecommunications. The projects are part of an aid program for the Turkish Cypriot community, with the EU subsidizing various economic and social projects
• Favorable government policies : The government's attractive taxing condition and residency programs stimulate demand for residential complexes in some developing areas. Obtaining a residence permit in Northern Cyprus through the purchase of property is a feasible and relatively straightforward process. Both commercial and residential properties qualify for residency. This includes a range of options like hotels, offices, and residential homes. It's important to ensure the property is from a licensed developer and is free of encumbrances. Although you cannot obtain residency through a property purchase on mortgage. However, developers often offer installment payment plans, which are interest-free for several years. The average processing time for a residence permit is about 2-3 months if all necessary documents are ready.
• Forbes Recommendation: Forbes Magazine, in a 2021 article, highlighted the Turkish Republic of Northern Cyprus (TRNC) as one of the top destinations for real estate investment. The article, written by Kathleen Peddicord, pointed out the TRNC's advantages, such as high rental demand, short amortization period, and the convenience for foreign investors, especially in the Iskele-Long Beach region. The TRNC was recognized for its cost-effective living, affordable real estate prices, and potential for high returns on investment. Properties with sea views in the Iskele area were noted to be particularly attractive and considered as an excellent investment location with one of the world's most beautiful and longest coastline. Also, the Forbes article "The 5 Cheapest Places to Buy Property Abroad In 2024" spotlights Northern Cyprus as a cost-effective option for property investment. Converted to square meters, the average price in Northern Cyprus is approximately $1,270 per square meter which is 47% cheaper than the U.S. average. The region, known for its beaches and welcoming community, is seeing growth in tourism and development. Pre-construction deals are highlighted as particularly advantageous, with potential currency fluctuations enhancing the value for U.S. dollar investors.