Cyprus is divided into the Northern third of the island and the Southern two thirds; this report deals specifically with Northern Cyprus as it has a very different real estate economy to Southern Cyprus.m
In 2006 a series of unprecedented and exciting developents occurred to boost the appeal of the property market in North Cyprus and going in to 2007 the effects of a number of these factors will come in to play and mean that North Cyprus property is one of the most exciting investment commodities in Europe for an investor seeking sharp capital appreciation and long term investment potential.
There is an ongoing dispute between North and South Cyprus about land and property on either side of the border and in 2006 events unfolded that suggest in the future the former Greek Cypriot owners of abandoned land and real estate in the North will be able to seek compensation for their loss of use of property from the Turkish government. This will make the Southern Cypriots happy and remove a cloud that hung over the property market in North Cyprus for many years. No longer do investors and those buying holiday or retirement homes have to worry that they may have to stump up compensation money to the former owners of their small parcel of Cyprus.
Furthermore North Cyprus has an airport that it is not allowed to use for direct flights – Turkey made a grand offer to open its ports and airports to Greek Cypriot traffic in return for the airport in North Cyprus being open to direct flights and many in Europe are behind this offer. It is expected in 2007 that Britain will be the first country to begin direct flights and this will see the fledgling tourism industry in the North boom.
Northern Cyprus is a stunningly beautiful and diverse nation and ahead of any decision to allow direct flights and create a tourism industry which contributes hugely to the economy, private and public money and military assistance is being poured into improving the appeal of the North. Everything from road building and infrastructure improvement is underway, beaches are being cleaned and the environment protected so that when the tourists do arrive they will want to return and some will even want to stay and buy holiday villas or retirement properties.
Currently properties in Northern Cyprus are at least one third of the price of properties in Southern Cyprus or Spain and yet the Northern part of Cyprus is so much more beautiful and so much less developed. For a property investor North Cyprus in 2007 has to be the place to target and there are so many angles of approach that they can take. They can land bank, they can invest into emerging tourism projects such as hotel projects, they can commission constructors to build multiple properties that they then sell directly, they can buy apartments to let to the huge international student population in North Cyprus, they can buy holiday villas to rent out, they can renovate traditional village properties for rent or resale or they can even purchase commercial or residential stock suitable for letting out or leasing to local demand or they can buy off plan and flip on to other investors or property purchasers.
In conclusion, in terms of appeal and potential you will not find a more attractive market in 2007 than the property market in north Cyprus.
