Experts from Northern Cyprus predict further growth of the local real estate market in the second half of this year. The key factors that will facilitate this are high demand from overseas investors, the emergence of new projects, and the government’s soft tax policy. Let’s take a closer look at them.
Since June 2022, average property prices have risen from £1,013 ($1,310) to £2,533 ($3,276) per square metre. Given the high demand and small development area, analysts at Real Capital Analytics believe that prices for apartments in Northern Cyprus are in for the same long-term growth as for real estate in Spain and Dubai.
In 2022, foreign nationals purchased 5,800 properties in the TRNC (more than 40% of total sales). Thanks to the interest of investors from European countries, purchase and rent prices for real estate continue to grow and in some areas have almost doubled, experts say.
Investors are attracted by still relatively low prices, mild climate, beautiful views, and constant demand for housing. Other important factors are the improving economic situation in the republic, the emergence of many new construction projects, and the growth of tourism.
Local authorities strongly support overseas injections into the economy, so investors enjoy a soft tax policy and many programmes for naturalisation through investments. In addition, green building practices are increasingly spreading in the republic, which help attract more investors from developed countries.
An additional factor will be the development of infrastructure against the backdrop of rising demand for real estate. Several large projects are currently being developed in the republic: scaling up airports, expanding the road network, and building new healthcare facilities.