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Property Investment in Northern Cyprus 2008

Northern Cyprus, one of the Mediterranean's few remaining secrets, is proving to be one of the most exciting markets in Europe for property investment; significant property price growth is predicted for the medium term, impressive levels of investment and the numbers of potential investors looking to enter the country are at an all time high, income tax, import duties and corporation tax are all exempt, and there is little or no council tax. The country indicates promising potential as a lucrative property investment destination.

Tourism figures have accelerated in Northern Cyprus since 2000, with the number of arrivals rising from 173,130 in Q2 of 2006 to 200,936 in Q2 of 2007, representing a 16.1% increase, according to the Central Bank, and with arrivals between 2002 and 2006 registering an average annual increase of 6.2%. Occupancy rates increased from 17.5% to 23.8% in the first quarter of 2007, as reported by the Central Bank of Turkish Republic of Northern Cyprus (TRNC).

"Property prices have significantly augmented during the past 3 years"

Northern Cyprus has seen impressive economic performance in recent years, with growth recorded at around 10.6% in 2006. During the period 2003 to 2007, the country’s economic growth averaged between 10% and 15% per annum; with 11.4% in 2003, 15.4% in 2004 and 13.5% in 2005, according to Turkish government figures.

Foreign investment is actively encouraged with no restrictions in any sectors. Private property rights are guaranteed by the government with equal rights for both natural residents and foreign nationals. Northern Cyprus second largest trading partner, the European Union, comprises 21% of total imports and 27% of total exports, and the country's closely linked financial system to Turkey's strong economic presence has shown a stimulating effect on foreign property investors.

Property investment in Northern Cyprus has been consistently strong with all indications forecasting a long-term upward trend. Property prices have significantly augmented during the past 3 years due to the influence of the increasing numbers of foreign investors present in the property market. However, prices still remain as much as 50% below property values in the south of the island, presenting incredible capital growth potential as the North converges with the South.

This promising growth in terms of return on investment, particularly when compared to other property markets within the EU and UK, is increasingly attracting significant attention from overseas property investors. Property investment in Northern Cyprus is currently enjoying a boom as prospective growth indicates significant return on investment over the next decade.