If you’re thinking of buying a property in North Cyprus I’m sure you’ve done plenty of homework, you’ve thought about the title deed situation that affects both sides of the island and you’re aware of the developments in the political situation affecting the potential reunification of Cyprus. I’m also sure that you’ve encountered a lot of puzzled looks and confused questions from those who don’t understand your decision to buy real estate in Northern Cyprus.
Additionally, if you’re wondering why anyone would buy so called ‘risky’ property in North Cyprus and you really can’t see the appeal, this article is just for you!
The first thing anyone needs to know is that there are low risk ways to buy property in Northern Cyprus, you can buy on a development where there are rental guarantees if you want an investment property on the island, you can buy property that was formerly owned by Brits, other foreign nationals or Turkish Cypriots pre 1974 or you could buy real estate on the south side of the island and leave behind all the confused talk about title deeds.
The second thing that anyone needs to know is that the majority of land and property for sale in TRNC is now coming onto the radar for Russian property investors. That’s not to say the Russians are inhabiting the island – in fact, there are few Russians living full time in Northern Cyprus. Rather the Russians know a good property bet when they see one and they bag units, occasionally rent them out but usually sit on them until a market turns and moves upwards and then they resell.
Remember southern Cyprus used to be an affordable place to live? Yes, well, the Russians began buying in bulk in south Cyprus about a decade ago, just ahead of the huge boom in underlying prices that the market has just enjoyed. And as Lance Nelson from Jet2Let recently told the Telegraph newspaper, if you want to know where to invest in property for profit, watch what the Russians are doing.
So, if you want to know why to buy so called risky property in North Cyprus, the fact that the Russians are land and property banking could just mean that there are large profits predicted around the corner.
If following a particular crowd is not a good enough reason for you to buy in – even when the crowd has been so successful in the past – you could look at the reasons behind the massive Russian buy in.
In part it’s because Cyprus is one step closer to a peaceful resolution to all outstanding issues that currently keep the island divided now that the south has a new leader and political party in place. Or it could have more to do with the fact that there is an interesting ‘secret’ source of money ploughing massive funds into the northern third of the island and improving infrastructure and seemingly gearing it up for substantial change.
It seems that whilst the political wheels slowly turn, those who are more interested in economics and making money are already positioning Northern Cyprus to reap the dividends when the borders come down, free trade is allowed and direct flights can fly in – and their work is already boosting the lasting appeal of well constructed real estate stock in the north.
A couple of words of warning for anyone thinking about buying property on the north though – always use a reputable agent, ask to see completed examples of any developer’s work, see proof that the land you’re buying on is not mortgaged and ensure that the solicitor you use is independent and not in some way related to the developer.