North Cyprus Properties - Time to Invest?

Prices of North Cyprus properties are currently under market value in Mediterranean region and are expected to rise in following years. In this article we will briefly go over history of North Cyprus and then review the current market situation and the expected changes in next few years.

Background

The geographical location of Cyprus has made a it favourable location for life and business. The country enjoys 300 days of sunshine throughout the year. Many parts of nature are untouched and preserved, especially in the North. Cyprus has two official languages, Greek and Turkish. English is widely spoken in both sides of the island. The island has expat friendly culture due to many years of tourism, trading and being a bridge between West and East. The culture accepts both Eastern and Western views.

Because of internal conflicts between Turkish Cypriots and Greek Cypriots the island was divided into two parts in 1974 with majority of Greek Cypriots moving to south and majority of Turkish Cypriots moving to North. Both sides of the island established their own government however only Greek Cypriot side managed to get internationally recognized.

There have been island re-unification efforts throughout the years, the most important one took place in year 2004 and reached a final solution for the Cyprus problem called "the Annan Plan". The Anna Plan was put in referendum. Turkish Cypriots voted in favour of the plan and Greek Cypriots didn't; therefore the plan was not put into action.

The whole island joined the EU in 2004, however due to problem between South and North; EU rules are not completely enforced in the North until a solution is reached. The North Cyprus government is voluntarily modifying the rules and regulations to the EU format.

Since 2004 North Cypriots when voted in favour of Anan plan for Cyprus solution international embargoes on North Cyprus are being eased. Borders restrictions have been lifted for all EU citizens and many other countries' citizens. Tourists and locals are free to travel to whichever side of the island they wish through gates. Large international companies such as HSBC Bank, Mercure hotels, Nike ... have already started their presence in North Cyprus.

Property market in recent years

Property market has gone through enormous growth since 2004. In the period between 2004 and 2006 price of properties doubled, and had has steady growth till today. Currently the average price of property in North Cyprus is about 1/3 of properties in southern Spain and half in South Cyprus.

Many expect that a final solution to the Cyprus problem to be reached as soon as 2008-2009, as leaders of the both sides have already agreed to engage in fully integrated peace talks starting on 3rd of September 2008. It is worth noticing that Nicosia is the EU's only divided capital and EU has special focus on Cyprus issue in order to accelerate the process.

Some concerns exist regarding the status of title deeds when the island unifies, however there are ways to make sure that your investment is safe. You need to know which title deed you are buying. There are basically four types which are explained on the author's website.

If a solution is reached by the end of 2008, sharp increase of values on all properties is expected.

There are excellent Buy-to-rent opportunities in North Cyprus. You can buy your property; enjoy your summers in Cyprus and then rent it out rest of the year. There are number of good property management service providers that can help you make sure your home is safe and the rents are paid on time while you are away