Purchasing property abroad, especially in warm countries with the sea nearby, often becomes a dream for many. However, before taking this important step, it's essential to prepare thoroughly and consider several crucial aspects. Buying property in another country is a significant decision that requires attention to numerous details. In this article, we will explore some of the key points to consider when purchasing real estate in Northern Cyprus.
Northern Cyprus is the Turkish Republic of Northern Cyprus, which has recently started attracting foreign investors' attention. This region is a hidden gem in the Mediterranean, remaining relatively undiscovered by most of the world. It boasts all the attributes for comfortable living and relaxation: pristine nature, beautiful sandy beaches, developed infrastructure, and outstanding investment potential.
The cost of real estate in Northern Cyprus currently remains relatively low, making this region highly attractive to potential investors. While in some other Mediterranean coastal countries, the price per square meter has long exceeded 3,000 euros, in Northern Cyprus, it's still around 1,000 euros.
The first and most crucial step in buying property in another country is selecting the right property. First and foremost, you should determine your purpose for the purchase: whether you plan to invest for the long term or short term, whether you intend to reside permanently in the property or use it for vacations. Important factors influencing property prices include the number of rooms, the building's age, the view from the windows, the floor, proximity to infrastructure, and the availability of amenities on the property.
Northern Cyprus, formerly known as a vacation spot primarily for retirees and the Turkish elite, is becoming increasingly popular among buyers from the CIS countries and Europe. The region offers everything necessary for comfortable family living. It has several international schools and universities where instruction is in English, and diplomas are recognized worldwide. Additionally, Northern Cyprus has numerous world-class medical facilities, well-developed infrastructure, and clean ecology, thanks to the absence of major industrial plants. Moreover, the region boasts an extensive transportation network. Property prices start at around 50,000-60,000 euros for ready apartments and properties under construction. During the construction phase, you can also earn returns on investments since the price difference between the excavation stage and completion can reach 50%.
The average return on investment for real estate in Northern Cyprus is approximately 8-10 years. Half of foreign investors purchase property for investment purposes, while the other half does so for their own residence. The highest rental income can be generated by apartments in major cities such as Kyrenia, Nicosia, and Famagusta, where the demand for rentals remains stable year-round. For example, the income from a furnished two-bedroom apartment averages over 1,500 euros per month. Monthly rentals are popular in Kyrenia and Nicosia, while yearly rentals are more in demand in Famagusta.
Modern residential complexes with developed infrastructure, including water parks, private beaches, supermarkets, and beauty salons, are widespread in the suburbs of Northern Cyprus. Such offerings typically yield the highest rental income since they are convenient for short-term renters, such as those on daily, weekly, or monthly vacations. The climate in Northern Cyprus allows for year-round enjoyment of warm weather, with hot Mediterranean summers and mild winters, where temperatures remain around +20 degrees Celsius with soft sunshine. This makes the region appealing for various types of vacations, both for summer holidays and winter stays by the sea, taking advantage of indoor pools, jacuzzis, saunas, and steam rooms.
However, despite all the advantages, purchasing property in another country is a complex process that requires careful preparation and professional assistance. One crucial step is selecting a real estate agency and a lawyer. It is not recommended to rely solely on your knowledge and experience since real estate transactions in another country may have their specific features and nuances best handled by experienced specialists.
When conducting real estate transactions in Northern Cyprus, it is strongly recommended to use the services of a lawyer. A licensed lawyer registered with the Turkish Republic of Northern Cyprus Bar Association will provide legal protection for your transaction and guide you through all the necessary steps. The cost of a lawyer's services is approximately 1,500 British pounds (approximately 1,800 euros).
Another important aspect when buying property in Northern Cyprus is property registration. In the Turkish Republic of Northern Cyprus, it is known as "kochan." It's crucial to note that all real estate transactions in Northern Cyprus are entirely legal and have legal validity. Your property rights are securely protected, and no one can take away your property. When registering property rights, you'll need to pay a tax, which amounts to only 3% of the property's cadastral value.
Buying property in Northern Cyprus and moving to the seaside is a significant and important step. However, it also represents an opportunity to start a new, comfortable life in an amazing place. Relying on professionals, such as a lawyer, will help ensure that the transaction is conducted safely and successfully. Northern Cyprus is a region with tremendous opportunities and prospects, and with the right approach, it can become your new home or investment project.
