Investment Property In North Cyprus
North Cyprus house prices have been predicted to double over the next 3 years by sources giving the following reasons as market drivers:
North Cyprus is a great holiday and investment destination and is already very popular with British holidaymakers. It has an English Legal system (all contracts will be in English) house prices are in Pounds sterling and English is widely spoken throughout. You drive on the left hand side and do not need an adaptor for your plugs
Strong political indications that direct flights will be allowed to the newly built Ercan International Airport within 18 months – Richard Branson has already been in talks with the TRNC (Turkish Republic of North Cyprus) and British governments and America earlier this year gave a clear signal by flying 2 congressmen directly there for talks with the TRNC government (who were met by the US ambassador at the airport) much to the dismay of the South side.
Possibility of political settlement with South as Turkey needs to resolve the North Cyprus situation to enter the EU and America and UN are bringing strong pressure on to the Greek side to accept an Annan Plan based solution.
Strong likelihood that if the Greek side continue to drag their feet (they have been wrong footed since they rejected the Annan plan which the Turkish side accepted) there will be independent recognition of North Cyprus from the USA and then the rest of world. America helped finance the renovation of Ercan Airport and has its eye on Getickale Airport in the North (with runway long enough for B52’s) and a sea base in the Karpas peninsular in exchange for recognition.
Prior to either of the above embargo likely to be eased or completely lifted.
Only a matter of time before first mortgages available which in itself will send what is currently a cash buyers market into orbit.
Title insurance also likely in the near future which will fuel the market even further.
Prices are currently half the price of the South and less than a third of the price of Spain.
Is It Safe To Invest In North Cyprus Developments?
There has been some confusion and misinformation regarding investment in North Cyprus with several companies and articles declaring the area un-wise for investment because of the possibility of the investment becoming worthless in the even of land disputes over correct lineage. Typical statements are similar to the one below:
"When a settlement to the division of the island comes, as it will, anyone who has bought a property without correct lineage - for example one that should rightly belong to the Greeks.
This information is actually not accurate and misleading. There was an international adjudication under the Annan plan in April 2004 which was accepted by the Turkish side in a referendum and rejected by the Greeks. This will form the legal basis for any future settlement and means Greek Exchanged land (Esdeger) will have no compensation paid by either party if the exchange was done correctly and Expropriated Greek land by the TRNC government will have a compensation based on the 1974 land values plus interest. In most cases this is likely to be 2 or 3% of the current property value. The only possible threat (under human rights law) would be for someone to buy a Greek property in the North that was built and occupied prior to 1974 as opposed to buying a property subsequently built on farm land that has no prior occupation rights.