Many dream of retiring to a beautiful home in the Mediterranean, and with the interest in self-builds, renovations, and home improvements, it's also increasingly an aspiration for retirees or families who'd love to create a unique, bespoke home perfectly suited to them.
While self-build projects have often been perceived as costly or complex, they remain more affordable in many destinations than purchasing a ready-to-move-into home. This makes construction projects highly appealing for those with a DIY talent or who finally have the time in retirement to put their skills to good use.
In this guide from the real estate specialists at Property Turkey, we’ll learn why North Cyprus is seeing sustained upticks in demand from foreign national buyers, the attraction of the destination for retirees, and why a significant proportion see the potential to either purchase a renovation project or buy land to create a self-build home.
The Northern Cypriot Property Market for Foreign Buyers
We support thousands of buyers and investors every year and appreciate that your priorities will always be specific to your circumstances. However, for many, North Cyprus represents one of the few remaining locations where quality homes in stunning surroundings remain highly affordable.
There are several variances between the north and the republic in the south, but the big contrast is that North Cyprus is less densely populated and has fewer tourist resorts with much of the same infrastructure and an identical climate.
That means properties are less expensive, there is greater diversity of choice in terms of location, and buyers can purchase a home, apartment, or parcel of land close to sandy beaches, charming towns, and all the conveniences at a fraction of the cost they’d expect to pay elsewhere.
In terms of pricing, North Cyprus's untapped potential is becoming a well-kept secret. Foreign buyers who purchased homes six or seven years ago now achieve sale prices significantly higher than the values they bought them for—partly due to increased interest in less obvious locations and partly due to investments in new-build complexes and developments.
Although foreign nationals are limited to buying one property, there are few other restrictions, and with lower property taxes and fees than in much of Europe, it isn’t hard to see why the levels of real estate investment are only anticipated to grow.
Affordability of Northern Cyprus Property in Comparison to the South
The latest property market averages indicate that the cost per square metre of buying a property in North Cyprus is as much as half of the price per square metre buyers pay in the south—largely influenced by the buoyant markets in major cities like Paphos and Limassol.
Developers and sellers in North Cyprus will often be happy to complete a property purchase in the currency of the buyer’s choice. Still, many British buyers opt to pay in GBP since the exchange rates offered against Sterling are extremely favourable.
That is because the North uses the Turkish Lira as its official currency, which makes a substantial difference when calculating the cost of a property and the associated fees in GBP, especially when the Euro is available at less advantageous rates.
Despite the real estate boom, the North remains incredibly affordable. As an indication, a generously sized villa with three or four bedrooms and a pool or spacious garden costs somewhere around 33% of the market value of a similarly sized home in the most popular parts of the south.
Buyers also need to budget for the expenses associated with purchasing a property. Alongside lower real estate costs, property taxes and stamp duty in North Cyprus are also considerably lower than in most other Mediterranean and European regions.
Adding these cost savings together showcases why so many retirees are turning their attention to the north, where a smaller budget can secure a more comfortable home in a coastal region and with lower long-term taxation and running costs than in most other countries.
Low crime rates, fewer crowds, and the peace and tranquillity of the areas away from the larger towns add to the appeal, since retirees commonly prioritise areas with guaranteed good weather and where retirement incomes can stretch further.
Exploring the Potential Self-Build Opportunity Within Northern Cyprus
We mentioned self-builds, and one of the developments we’ve seen over the last couple of years is a rise in demand for parcels of land, in compliance with the caps on foreign national real estate investment, but where buyers can create a residential home to their specifications.
A recent news report looked at a British buyer who purchased an acre of land some years ago, close to Kyrenia, and built an ample four-bedroom home with an orchard, outdoor pool and panoramic views. The total construction cost was around a third of the value the property would be expected to achieve today if the owner were to sell.
Foreign buyers are permitted to purchase land in North Cyprus with the same approval from the Council of Ministers as they would need to buy a home, with a maximum plot size of 1,338 square metres.
Although land prices are variable, and parcels of land often increase in price gradually each year, build and renovation costs remain competitive. Buyers can work with a developer to create a custom build within a planned development or decide to build independently, with most opting for the former to ensure the process is well managed.
With assistance from local contractors, the cost and outcomes achievable when designing and completing a bespoke build are accessible with even a modest budget.
We hope this guide has clarified why North Cyprus has become a hot spot for retirees, families, and self-build enthusiasts and highlighted some of the appeal of this quiet, low-cost spot in the Mediterranean.
Read more about Property Turkey – All You Need to Know About Buying Property in Turkey as an Expat
About Property Turkey: With 20+ years experience in the Turkish real estate market, team Property Turkey are your experienced, friendly and independent overseas real estate consultants. Our head office is located in London, UK with regional operational offices in: Bodrum, Fethiye & Kalkan, Antalya and Istanbul.
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Source Company: https://www.propertyturkey.com/
