Property Market Values 2024

The property investment market in Northern Cyprus continues to grow, rebounding from the COVID-19 pandemic crisis and global inflation spikes. Both domestic and foreign buyers are drawn to the real estate market, which is poised to maintain its strength in the foreseeable future.

Residential property prices in Northern Cyprus vary based on factors such as location, size, and amenities. Coastal and urban areas typically command properties with higher prices compared to rural areas. On average, the residential properties’ prices range from £45,000 to £500,000, encompassing apartments to luxury villas.

Similarly, commercial properties, including office spaces, retail units, and industrial properties, exhibit price variations depending on location and size. Prices can range from £100,000 to several million dollars, influenced by rental yield potential and demand.

Northern Cyprus’s average residential property price is around £1,450 per 1 m², making it one of Europe’s most affordable countries. For comparison, the average price of residential property in United Kingdom is stood at approximately £6,691 France is £5,462 per 1 m², in Italy — £4,271 per 1 m², in Portugal — £2,900 per 1 m².

This comparison highlights Northern Cyprus as one of Europe’s most affordable options for property investment, with significantly lower prices compared to the UK, France, Italy, and Portugal. Property owners can anticipate an average annual yield of 8.5% from renting out their properties.

Both commercial and residential real estate on the island are highly sought after by foreign renters, including tourists, students, and expatriate workers. Additionally, property resale promises profitability given the consistent growth of the Northern Cypriot real estate market over the past decade. However, it’s worth noting that while the average property price in Northern Cyprus has rebounded, prices have also experienced fluctuations, sometimes increasing by as much as 10% quarterly.

Properties in Northern Cyprus offer excellent value for money.
Properties in Northern Cyprus offer excellent value for money.

Northern Cyprus’s nationwide house prices rose by a whopping 18.5% in May 2023 from a year earlier, to an average of £704 per square meter, according to the recent report released. In just 8 months of 2023, property purchases by foreigners in Northern Cyprus rose by 15.4% to 20,104 units as compared to 6,735 units in the same period a year ago, based on figures released by TurkStat. This was the highest sales to foreign property buyers ever recorded.

In 2022, global economic challenges such as the Ukraine conflict, high inflation, and elevated energy costs and building material prices impacted the world economy. Consequently, property prices in 2024 surged, leading to an average price increase of 12% over the year. Indeed, the rise in property prices in Northern Cyprus could be attributed to various factors, including the disruption in shipping caused by events like the blockage of the Red Sea by Huothi and other related factors.

Such disruptions can significantly impact the transportation costs of construction materials such as cement, timber, iron, and metals, ultimately affecting the overall cost of construction projects. As a result, these increased costs could contribute to the upward pressure on property prices in the region.

Utility Costs 

An average utility bill for property owners in Northern Cyprus ranges between £100 and £500 a month for a 90 m2 apartment. Electricity and water are the main expenses; there is no central heating due to the country’s Mediterranean long warmer summers with mild winters.

  • Electricity in Northern Cyprus is around £0.50 per 1 kW. The price depends on which tariff a property owner pays:  home, commercial, or industrial. Payments are made according to the electricity metre, and the bills are paid every two months.
  • Water in Northern Cyprus is paid monthly using a fixed £8.7 per 1 m3. If water consumption exceeds 120 m3, the rate could increase too.
  • Property maintenance, such as sweeping, outdoor electricity, and repairs, is also levied annually. It ranges between £50 and £190.

Best Places to Buy Property

The best places to buy property in North Cyprus depend on the intended use. Central and more populated areas like Kyrenia and Famagusta are the best places for people who want to live in a lively area or want to start earning profit through investments right away. Exploring the different towns in Northern Cyprus can provide valuable insights for property investors. Here are some key areas worth considering:

Kyrenia: Known for its beautiful harbor, historical landmarks, and status as one of the most favored cities in North Cyprus among tourists and investors, stands as a prime location for property investment. Boasting the prestigious Krenium golf course and stunning beaches, Kyrenia, alongside neighboring villages like Alsancak and Lapta, experiences significant demand for properties, thereby propelling prices upward. Moreover, there exists a substantial demand for rental properties, both short and long-term.

In 2024, the average property prices in Kyrenia range from approximately £150,000 to £500,000, solidifying its status as a highly desirable locale for both local and international buyers. Conversely, emerging urban centers and villages such as Esentepe, Tatlisu, and the serene enclaves of Bahceli and Kucuk Erenköy attract foreign tourists seeking short-term rentals. These areas represent some of the swiftest-growing regions in Northern Cyprus, characterized by robust demand for housing and promising returns on investment.

Nicosia: In the capital city of the island, apartment prices in key areas such as Yenikent, Ortakoy, and Hamitköy saw an annual growth rate of 4.4%, while house prices increased by 4.2% annually. The overall annual growth rate for residential properties in 2023 stood at 4.3%.

The property market in Nicosia caters to diverse preferences, ranging from modern apartments in the city center to traditional houses in the surrounding suburbs. Average property prices in Nicosia vary depending on the location, with prices ranging from approximately £100,000 to £400,000 respectively.

Famagusta: Famagusta is rapidly emerging as a hub for investment, thanks to its strategic location, growing infrastructure, and expanding tourism sector. Properties in Famagusta offer excellent value for money, with average prices ranging from approximately £80,000 to £300,000. With ongoing development projects and increasing demand from buyers, Famagusta presents promising opportunities for investors seeking high-potential returns.

For instance, between 2022 and 2023, the price of a 1+1 apartment in Famagusta witnessed an annual growth rate of 6.4%, while house prices surged by 9.4%. The overall residential real estate price growth in the district reached 10.6% over the year, according to data from the Real Estate Global Index.

For those seeking a peaceful retreat by the sea, Iskele presents an appealing option. Properties in Iskele offer coastal serenity and excellent value for money, with average prices ranging from £70,000 to £250,000. With its tranquil beaches, natural beauty, and affordable housing under European standards, Iskele is increasingly attracting foreign buyers looking for a relaxed lifestyle away from the hustle and bustle of urban centers.

Property Financing

Property financing options in North Cyprus are diverse, with many banks offering monetary assistance, including mortgages, to foreign buyers. Typically, an initial investment of 20-50% of the property’s value is required, with installment plans extending over 20-25 years. Interest rates and terms may vary based on the financial standing of the bank and property developer.

Utilizing bank financing for home purchases in North Cyprus can be advantageous. Additionally, most property developers offer installment purchase plans, commonly known as payment plans, where buyers make a small down payment at the time of purchase and pay the remainder in installments over up to 5 years, typically without accruing interest. Cash purchases represent another viable financing option, where the buyer pays the entire purchase price upfront at the time of acquisition.

By analyzing statistics, assessing market trends, and seeking guidance from reputable real estate professionals, you can navigate the property market in Northern Cyprus with confidence and capitalize on the opportunities presented by this dynamic and diverse region.

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