Investment
Why to invest in North Cyprus?
Investing in real estate in Northern Cyprus offers investors a unique opportunity to invest in property along the Mediterranean coast at relatively low prices and generate a significant return on investment. Property prices in Northern Cyprus are much lower compared to the southern part of the island. Thousands of citizens from the UK, Sweden, Germany, the former USSR, Israel, and other countries come here to acquire a second home or relocate and connect their lives specifically with the northern part of the island. Personal safety, excellent education, a warm climate, the Mediterranean Sea, endless beaches, and numerous other factors influence people from around the world to visit Cyprus and invest their money in local real estate.
No other European country currently offers such diverse investment opportunities. The type of property doesn’t matter, whether it’s a studio, a two or three-bedroom apartment, or a villa. In most cases, these properties are located by the sea within complexes that offer full infrastructure and services.
Furthermore, the initial amount of funds available is not a significant factor since most developers offer interest-free installments for several years without involving local banks.
It is important to note the stable price growth observed over the past few years. For example, the difference between completed and under-construction properties averages around 30%.
Therefore, it is always advisable to review construction projects at the construction stage.
The payment terms for investing in real estate in Northern Cyprus can vary depending on the specific project and developer. In general, here are some typical payment conditions:
- When purchasing property at the early stages of construction or before construction begins, prices are usually 25-30% lower compared to completed properties.
- Developers offer the possibility of installment payments over a period of 36-48 months, and sometimes even up to 60-72 months. This allows you to spread the payments over a longer period of time.
- Installment plans are typically interest-free and not tied to any specific bank. The agreed-upon price at the time of purchase remains unchanged throughout the payment period.
- Payments can be made monthly using credit cards, bank transfers, or cryptocurrency.
- Alternative payment conditions may be offered for clients who prefer different payment arrangements.
Usually, payments are made in stages according to the progress of construction. For example, typical payment stages may include:
- 30% initial down payment upon signing the contract.
- 25% upon completion of foundation works.
- 25% upon completion of the chosen floor’s construction.
- 25% upon completion of finishing works, including flooring, bathrooms, and kitchen.
- 10% upon receiving the keys.
It’s important to note that these conditions may vary depending on the project and developer, so it’s recommended to consult with the specific developer or real estate agent to obtain detailed information about the payment terms for a particular property.
Example of an investment for passive income:
Northern Cyprus is one of the most beautiful and popular destinations for tourists and investors from around the world. If you are looking for an opportunity to invest in real estate and generate stable income with a reasonable level of risk, investing in rental properties in Northern Cyprus can be an ideal solution for you.
Developers in Northern Cyprus offer various types of properties for potential investors, including villas with stunning sea views and private land, apartments with private parking, and commercial properties such as hotels and guesthouses. Due to the large number of tourists visiting the region annually, there is a constant demand for rental properties, allowing you to ensure a steady and stable income stream.
In addition to stable income, investing in rental properties in Northern Cyprus can also diversify your investment portfolio and provide competitive returns on investment (ROI). With prices starting from £62,000 in popular coastal areas, you can acquire property abroad at a much lower cost than you might imagine. As mentioned earlier, even such a modest sum can be financed through installment plans over several years.
The annual rental income from properties can reach 5-8%, depending on the chosen project, property management company, investments in social media advertising, and other factors. Periodically, developers offer guaranteed rental income for up to 3 years or cash-back on the invested amount even before the property is completed, and sometimes both. We constantly monitor the market to provide our clients with the most advantageous offers at any given time.
Economy of Northern Cyprus
The European Commission and the International Monetary Fund have recognized the economic stability of the region and its local industries. Several sectors have been successful in their development in Northern Cyprus, including tourism, textile production, casinos, five-star hotels, agriculture, and a multitude of universities and colleges that attract thousands of foreign students annually. This is just a partial list of the industries that have established themselves in Northern Cyprus.
The advantages of a warm climate, personal security, and very low taxation allow foreign investors to generate significant income from rental properties and annual increases in real estate value. For example, summarizing the economic situation in 2023, clients who invested three to four years ago are now enjoying over 40% profit compared to the initial purchase price. Each year is different from the previous one, and there are always unique opportunities for investors to make profitable investments in the local economy.
Tourism in Northern Cyprus
Cyprus offers a variety of places that attract hundreds of thousands of tourists from around the world. The warm and dry Mediterranean climate provides ideal conditions for relaxation. Thanks to high temperatures in the summer months and a warm and comfortable climate in spring and autumn, Cyprus allows visitors to enjoy beautiful beaches and the sea for most of the year.
Magnificent mountain ranges and charming beaches create truly unique experiences. In winter, many people come to visit the ski resort on the southern slopes of the Troodos Mountains. In the morning, you can go surfing in the sea, and in the afternoon, you can go skiing.
Furthermore, Northern Cyprus has become a leading destination for hosting international poker tournaments featuring renowned players with a global reputation. These high-level tournaments are conducted in accordance with the highest standards.
