Northern Cyprus — a Gold Mine for Investors? Interview with a Market Expert

340 days of sunshine a year and predictions of property values doubling by 2028 — over the past three years, Northern Cyprus has transformed from a quiet Mediterranean haven to one of the hottest real estate investment markets. But is now really the ideal time to enter this market? What pitfalls await unprepared investors? And what real returns can be counted on?

We talked about this and much more with Elena Kalenskaya, acting broker of GP Real Estate. Elena shares insider information about the real estate market of Northern Cyprus, tells us about real cases from practice, and gives practical recommendations for those who are considering investing in this promising region.

The North Cyprus Real Estate Market Right Now

— Elena, how would you characterize the current state of the North Cyprus real estate market? How much has it changed in recent years?

— Northern Cyprus is currently experiencing a real investment boom. Over the last year and a half, the demand for real estate has increased many times over, especially after 2022. Today, good properties are being sold at the excavation stage.

Statistics show that the number of transactions since 2023 has increased by 54%. The pace of sales at developers is breaking all records, and interest from foreign buyers is only growing. It is important to realize that Northern Cyprus is probably the last affordable paradise of the Mediterranean, where property prices are 40-60% lower than in Europe and the southern part of Cyprus, with a comparable quality of life.

— Is there seasonality in the North Cyprus real estate market?

— Absolutely. The peak of activity traditionally falls on spring (March-May) and fall (September-November). This is due to both comfortable weather for viewing properties and the tourist season. Many potential buyers first come as tourists and then decide to purchase real estate.

During these periods, there are also specialized exhibitions, investment tours, and various promotions from developers. In summer, activity is slightly reduced due to the heat, and in winter, due to unpredictable weather and holidays. However, in general, the market remains active all year round due to the 340 days of sunshine per year and mild climate.

Investment Potential of the Region

— Why do you think now is the best time to invest in North Cyprus real estate?

— Right now, we are witnessing an ideal investment situation. The real estate market in Northern Cyprus is in a phase of active growth, but it has not yet reached its peak. Analysts predict a doubling of property values by 2028. This is certainly a golden time for the investor.

There are a few key factors that make Northern Cyprus particularly attractive for investment right now:

Firstly, value for money. The cost of housing here is significantly lower than in other Mediterranean countries, with comparable or even better quality.

Secondly, infrastructure development. The island is actively building new roads, shopping centers, and medical facilities, which inevitably leads to an increase in the cost of real estate.

Thirdly, attractive conditions for investors. Developers offer flexible payment schemes, interest-free installments, which makes it much easier to enter the market.

— What real returns can investors expect under different scenarios?

— Depending on the chosen strategy, yields can vary significantly. In the case of long-term rental properties, you can expect 5-7% per annum in currency, which is already higher than bank deposits. If we talk about short-term rent, especially in high season, the yield can reach 10-12% per annum.

The most impressive performance demonstrates the strategy of resale of real estate at the construction stage. Here, capitalization can be from 20 to 40% for 1.5-2 years. It all depends on the right choice of the object and the moment of entry.

It is important to note that to maximize profitability, it is necessary to carefully analyze the market and choose projects from reliable developers in promising locations. That is why it is so important to work with professionals who deeply understand the local market.

Popular Properties and Locations

— What’s trending in the North Cyprus housing market? Which properties are in the highest demand?

— A clear trend in recent years — complexes with developed internal infrastructure. Buyers want to get maximum amenities within one area: swimming pools, spa centers, fitness halls, restaurants, and co-working spaces. Projects on the first and second lines from the sea are especially popular.

There is also a noticeable increase in interest in villas and penthouses with panoramic sea views. This is especially characteristic of investors who plan to rent out the property or consider the option of resale in the future.

If we are talking about specific projects, I can single out the top 5 complexes that are in particular demand now:

• Grand Sapphire is a large-scale project on the shores of the Mediterranean Sea, divided into three phases with full infrastructure: the already completed Grand Sapphire Resort, the under-construction Grand Sapphire Resort 2 (14 floors have been built), and Grand Sapphire Blu, which is at the excavation stage.
• THE ONE — a unique project where villas are offered at the price of an apartment.
• Habitat — a project that offers installment payments even after the completion of the project.
• Caesar Resort — a complex with full infrastructure, in two minutes from the famous Long Beach.
• Courtyard — a modern project with an optimal price-quality ratio.

— Who mainly buys property in North Cyprus? What is the portrait of your typical buyer?

— The main demand today is formed by citizens of Russia, Kazakhstan, Ukraine, European countries (especially Germany and Poland), as well as Iran and the Gulf countries. Recently, buyers from Turkey have become more active.

If we talk about the ratio, foreign buyers account for more than 80% of the total number of transactions in the primary market. Natives of the island mainly buy secondary real estate or housing outside the resort areas.

As for the portrait of a typical client, it is a person 30–55 years old, often with investment experience, or an entrepreneur. Many are looking for a reliable asset with returns above bank instruments or real estate for vacation and possible relocation. Also among the buyers are many families with children, freelancers, and digital specialists who see Northern Cyprus as an alternative to Turkey or Dubai due to its more comfortable climate and peaceful atmosphere.

Legal Aspects of Transactions

— What legal nuances face foreign buyers in Northern Cyprus?

— Buying real estate abroad is always associated with certain peculiarities, and Northern Cyprus is no exception. Among the key legal nuances, I would highlight the following:

Firstly, there is a restriction for foreigners — you can own no more than one piece of real estate without registering a company. This is important to consider when planning long-term investments.

Secondly, it is necessary to be attentive to the currency of the transaction. Contracts may be concluded in Turkish lira, pounds, or euros, which affects the final value and may create certain currency risks.

Thirdly, not every property has a clean title and is correctly registered in the cadastre. This is one of the most important points that requires careful checking.

— What installment terms are available when buying property in North Cyprus?

— Installments are one of the main advantages of the North Cyprus real estate market. Almost all developers offer interest-free installments for the construction period, which is usually from 1 to 2 years. Some developers are ready to provide installments even after delivery of the object.

The standard down payment is from 30 to 40% of the cost of the object. It is important to note that there are flexible payment schedules, which can be adapted to the specific financial capabilities of the client.

Especially favorable installment terms are offered at the start of sales of new projects. During this period, developers are ready to make maximum concessions to attract the first buyers and launch sales.

Case Studies

— Could you share a real case study from your practice that illustrates the specifics of working in the Northern Cyprus market?

— Of course. Recently, we were approached by a couple from Germany. They had independently found an inexpensive apartment with a sea view on the secondary market and were sure that it was a great opportunity. However, after the initial due diligence, several problems were discovered at once:

• The title had not been fully formalized due to an inheritance dispute between the previous owners. 
• There was a bank encumbrance on the property. 
• The previous owner had not paid taxes, which could create problems in the future.

These people were one step away from making a serious mistake. Thanks to our experience and extensive database of properties, we promptly offered them an alternative — a ready-made apartment in an already completed complex with clean documents, full furnishings and a 12-month installment plan.

We organized a viewing the very next day, agreed on individual installment terms, and as a result the clients purchased a safe and liquid object. Now they are not only enjoying life by the sea, but also actively recommend us to their friends and acquaintances.

— What recommendations would you give to those who are just planning to invest in real estate in Northern Cyprus?

— First of all, I recommend that you thoroughly research the market and define your investment objectives. North Cyprus offers a variety of opportunities, but it is important to understand what exactly you want to get: a stable passive income from rent, quick capitalization at resale, or comfortable housing for your own use.

The second important point is to choose a reliable partner. The North Cyprus market has its own specifics, and it is easy to make mistakes without the support of an experienced agency.

The third thing is not to rush into a decision. Even if you have found, at first glance, the ideal option, it is necessary to carry out a legal check and make sure that the documents are clean.

Finally, it is important to assess the development prospects of the area in which the chosen object is located. Infrastructure, plans for the development of the area, proximity to the sea, and other important facilities — all this directly affects the future liquidity of real estate.

Northern Cyprus today is a truly unique investment opportunity with huge growth potential. And now is the perfect time to become part of this market.