Why Is Real Estate Investment in Cyprus Advantageous?
North Cyprus has become one of the fastest-growing real estate markets in the region in recent years. Thanks to its economic stability and high quality of life, TRNC offers attractive short- and long-term returns for both local and international investors. Below are the key reasons behind this upward trend.
1 – Continuously Increasing Property Values:
Property prices in North Cyprus have been rising consistently. With an annual average increase of 10–12%, investors benefit from steady and secure capital growth. For example, studio apartments that were sold for £22,000–£24,000 in 2012 now approach £40,000. Similar price increases are seen across Girne, Famagusta, and Iskele.
2 – The Advantage of a Sterling-Based Market:
Most property transactions in TRNC are conducted in British Pounds. Over the last five years, GBP has gained approximately 65% in value against the Turkish Lira. This allows investors to profit significantly from currency appreciation alone. An investor who bought a £50,000 property in 2012 would have gained substantial value purely from exchange rate fluctuations.
3 – High Rental Income and Short Payback Period:
North Cyprus is one of the most profitable regions in terms of rental yield. While the rental return period in Istanbul is around 25–30 years, it ranges from 10 to 16 years in TRNC. For example, a 2+1 apartment in Girne typically rents for around £400 per month, offering strong annual income and fast return on investment.
4 – Strong Demand Driven by Education:
TRNC hosts nearly 100,000 students. Universities, international private schools, and the overall safe living environment create continuous demand for rental and residential properties. This keeps the rental market active and supports long-term investment stability.
5 – Potential European Union Membership:
If ongoing Cyprus peace negotiations reach a positive outcome, North Cyprus could join the European Union. In such a scenario, investors who own property in TRNC would hold real estate on EU territory, which would significantly boost property values. Additionally, property prices in South Cyprus are nearly four times higher than in the North, making TRNC an attractive alternative.
6 – Safe, Peaceful, and Welcoming Lifestyle:
Cyprus is known for its educated, friendly, and hospitable community. The low crime rate, peaceful environment, and strong social values make the island an ideal place to live and invest. The high level of trust within the society is one of the most important reasons many foreign investors prefer North Cyprus.