Why Invest in Northern Cyprus?

A staggering 200,000 people emigrated from the UK last year. One of the most worrying stories to emerge this month is the announcement from the UKS pension commission that houses are unlikely to provide an alternative source of income for retirement – except, perhaps for those who inherit property. Thinking beyond retirement, to what you will leave behind, choosing a location with a favourable inheritance tax law could save your family thousands. The age of mass commercialism and mass tourism but there are simpler pleasures such as delightful choices of restaurants, tavernas and bistros, where cuisine ranges from traditional Cypriot with Turkish influence to gourmet international dishes. Prices and costs of eating and shopping will give you a pleasant surprise.  

Finding a place that ticks all the boxes is always going to be difficult but knowing which boxes must be ticked is a good start.  Look for the property and location that will not only work for you in your absence but will grow into the kind of place you want to live in retirement.  As housing prices in the UK slow down, and mortgage applications decrease, property investors are increasingly investing in property overseas. 54% of respondents believe that overseas property presents the greatest opportunity for investors. 

22% of property investors are planning to invest in property overseas. Investing in Northern Cyprus has become far more attractive due to rising interest rates which have made UK properties more expensive, and exchange rates which allow UK investors to get more for their money. As a retirement option, overseas property not only provides potential capital gains and a regular source of rental income but also somewhere to look forward to which boasts a better climate and cheaper cost of living. Many sources in Northern Cyprus admit the “sky is the limit” on the prospects to this island. They feel that “the boat has not even left the harbour yet” and our advice is to “not miss this boat” The current television trends in the UK are “Relocation Relocation” “No Going Back” “Place in the Sun”and “Grand Designs abroad” 59% of Brits declared a desire to emigrate from UK (Property Overseas) Circ. A further survey took place to reveal that one in eight Britons are considering purchasing a home in the Sun in the next five years. The North of the island is truly unspoilt, and uncommercialised with people renowned for their hospitality and their warm, friendly welcome.  With its delicious local cuisine, its natural untainted beauty and its resorts free from crowds, this is a unique holiday destination.  Located in the Mediterranean, just 40 miles off the Southern Coast of Turkey the islands strategic position has meant that Cyprus was the stepping stone between East and West, the historical cross roads of the ancient world. 

Almost dwarfed by the dramatic range known as the Five Finger Mountains, North Cyprus is surrounded by impressive scenic beauty in an area steeped in compelling history.  The castle of St Hilarion perches high above the town, surveying the coastline below, with its rocky caves and sandy beaches.  North Cyprus is a place you have only dreamed of, it is a unique, unspoilt holiday paradise. The southern part of Cyprus is far better known by British holiday makers and investors.  South Cyprus receives approximately three million tourists per year, but individuals have criticised for having become expensive and over commercialized, although arguably it is a beautiful and stunning island.   Northern Cyprus, like Taiwan is an unrecognised Country, however inadvertently creates a real opportunity for investment and property enthusiasts. Combined with the forthcoming unification it still remains an undiscovered secret, retaining natural beauty and Cypriot character with beautiful sea and mountain views stretching along the coast of Aphrodite’s island. Although there is something of a property boom in progress in the North it is still highly undeveloped offering prices approximately 50% lower than their equivalents in the south and at a fraction of the price of more developed Mediterranean countries..

Expected returns have provided up to 30% or more in one year from plans to completion in the surrounding Kyrenia district with healthy holiday rental returns. The new up and coming area is East of Kyrenia, Esentepe, Bacheli and Tatlisu is an area which is attracting foreign investment.  There are discussions underway regarding the proposed islands first 18 hole international golf course, a shopping complex and a large marina at planning stage. All the projects in this area are located close to the sea combined with the most stunning dramatic mountain backdrop

Property is no longer considered an ‘alternative investment’ but a way of reaching excellent returns on initial capital. Northern Cyprus is at the beginning of the growth potential spectrum and therefore can provide excellent returns in a very short period of time. Property investors who have invested in North Cyprus, confidently share that their pledge to invest is based on affordable properties both in terms of potential growth and rental income   

NORTHERN CYPRUS – POPERTY HOTSPOT

Northern Cyprus is one of the few remaining ‘undiscovered secrets’ of the Mediterranean. It has a rich tapestry of unspoilt natural beauty, ranging from crystal waters and golden beaches to pine-clad heights of the Besparmak Mountains. For centuries, Cyprus has been influenced by the culture of many nations resulting in an island with a rich and diverse historical and architectural heritage.

The Turkish Republic of Northern Cyprus (TRNC) was created following the conflict of 1974, but as of yet it is not been recognised by the international community. Consequently, the economy has been slower to develop and property prices are now lagging behind those in the south of the island by up to 50%. However, following the admission to the EU by Greece and the southern half of the island, expectations of more rapid progress towards recognition have been heightened, and property and land prices are beginning to show an upward trend.

North Cyprus Property Market

With exemptions on income tax, import duties, corporation tax and little or no council tax, Northern Cyprus is a tax haven waiting to be discovered. Many grants are offered by the government to help with the setting up of business, particularly tourism. Government statistics say that from 1999-2002 there were over 6,000 foreign investors. Property prices have risen more than 120% in the last 3 years making Northern Cyprus one of the best places in the Mediterranean for property investment.

Why invest in Northern Cyprus Property?

• Wonderful Mediterranean climate and superb sea and mountain view locations
• Rich and diverse architectural and historical heritage
• High educational standards with international universities
• Costs for Health care facilities are much lower than the UK
• A combined benefit of low cost and high standard of living
• Property prices are constantly on the increase
• Average prices are less than a 1/3 of the prices in mainland Spain
• Holiday homes are considerably lower in price than other EU countries
• A typical two bedroom beach facing apartment with stunning views will cost as little as £50,000 and has excellent capital growth potential
• Very low utility charges and cost of living
• Ninety percent of Cypriots speak English
• The cost of living is much lower than the U.K and many other countries of the world
• The law is based on British legal system
• Property prices in Northern Cyprus represent excellent value for money as they are up to 50% cheaper than other areas of Europe.
• Frequent flights from various UK airports means North Cyprus is just 4 hours away.
• With long hot summers and short mild winters there are approximately 300 days of sunshine a year.
• Low cost of living is a great attraction for holidaymakers and retirees alike.
• English is widely spoken throughout the Island and the resident British community numbers 7,000.
• Strict building regulations limit the height of new developments as well as retaining green belt areas.
• With an increasing number of UK and European tourists visiting every year both rental and property markets are set to boom

Visitor numbers and available accommodation

A number of factors are now contributing to a significant increase in the number of visitors to the North. Since the border restrictions were relaxed last year the North has become more accessible. The publicity surrounding the referenda on the Annan Plan has brought the North to the public’s attention and this has encouraged more visitors and investors to want to come to the North. There are also indications that the ban on direct flights to Ercan may be relaxed – countries as diverse as the United States and Azerbaijan have already approved some direct flights to the North and the general approach of the European Union is to encourage an ending to the thirty year long isolation of Northern Cyprus. 

The Government of Northern Cyprus is now predicting that there will be substantial increases in the number of visitors to the North over the next few years. A major concern is the lack of hotel beds. Indeed the Government is now suggesting there is a need for at least 30,000 hotel beds within the next two to three years and as many as 50,000 by the end of the decade – that is a 500% increase in the present availability.