Sale of foreign real estate
Kyrenia, Korshiyaka street, Özyalçin 192 complex
Park Heights Square 1, Dubai, UAE
69, 67 1 Soi Kokyang, Rawai, Muang, Phuket
Grand condo 7, Chroy Changvar, Phnom Penh
Jl. Dukuh Indah No. 606, Bali 80361, Indonesia
1 Sherifa Khimshiashvili Str., Batumi
Çağlayan Mahallesi, Barınaklar Bulvarı 5, 07235
St. Petersburg, Moika River embankment 36, office 18
C/El Montículo 8, 29631, Benalmádena, Spain
Hungary, Budapest, Merleg St. 12
Pulawska Street 17, Warsaw
10b Trg Dara Petkovića, Tivat, Montenegro
Jacques Chirac st., Al Saadiyat Island, Abu Dhabi
Belgrad, Vidovdanska 3, lokal 2
Kazakhstan, Astana, Turkestan str. 14 A

Is it profitable to invest in North Cyprus real estate in 2024?

Home page » News » Is it profitable to invest in North Cyprus real estate in 2024?
North Cyprus real estate investment, modern houses on the background of picturesque mountains.
Author of the article:
Anastasia
Northern Cyprus
Real Estate Specialist
Date:  29.04.2023
Updated: 10/14/2024
Reading time: 13 min.
Views:  2,147

Northern Cyprus, officially known as the Turkish Republic of Northern Cyprus (TRNC), is located on the northern part of the island of Cyprus in the Mediterranean Sea. Despite the fact that the TRNC is recognized only by Turkey, it attracts the attention of many investors and entrepreneurs with its economic opportunities and unique geographical location.

The purpose of this article is to understand the question of the profitability of investing in Northern Cyprus. We will analyze the economic situation in the region, consider the main investment opportunities and determine how attractive Northern Cyprus is for investors.

The relevance of the topic is due to the fact that many investors are looking for promising markets to invest in, and Northern Cyprus can offer unique opportunities and advantages. However, before making an investment decision, it is important to consider all aspects related to this region, including the political situation, risks and potential returns. In this article, we will try to provide all the necessary information for an informed choice.

1. Economic Overview of Northern Cyprus

Is it profitable to invest in real estate in Northern Cyprus in 2023?

Economic growth and stability

Over the past few years, the economy of Northern Cyprus has shown steady growth. According to the World Bank, the region's gross domestic product (GDP) in 2021 was approximately $ 4.5 billion, which is 3.1% more than in 2020. GDP per capita in 2021 reached $ 16,500, which indicates an average level of well-being of the population.

Main branches of the economy

  1. Tourism: Tourism is one of the main components of the economy of Northern Cyprus. In 2019, the island attracted more than 1.5 million tourists, generating revenue of about $ 1 billion. Northern Cyprus is famous for its beautiful beaches, historical monuments and hospitality.
  2. Agricultural industry: Agriculture is also an important sector of the economy of Northern Cyprus. The main products are vegetables, fruits, and cereals. About 8.4% of the labor force is employed in agriculture, and the sector contributes approximately 7% to the country's GDP.
  3. Construction: The construction sector is actively developing due to the growing demand for housing and commercial real estate. In 2020, the volume of investment in construction amounted to about $ 450 million, which is 6% more than in 2019.

Political situation and impact on investment

The political situation in Northern Cyprus remains difficult due to the unresolved Cyprus conflict and the lack of recognition of the TRNC by most countries. However, despite this, Turkey actively supports the economic development of the region, providing financial assistance and investment.

Is it profitable to invest in real estate in Northern Cyprus in 2023?

Political instability may affect the investment of foreign investors, as some countries may impose restrictions on cooperation with Northern Cyprus. However, there are a number of international companies that successfully do business in the region, and some investors see potential in the economic growth and benefits that Northern Cyprus offers.

In conclusion, the economy of Northern Cyprus continues to grow, and industries such as tourism, agriculture and construction offer opportunities for investment. However, before investing, investors need to carefully study the political situation and assess the possible risks and limitations associated with investing in this region.

2. Investment in real estate and construction in Northern Cyprus

Is it profitable to invest in real estate in Northern Cyprus in 2023?

The real estate market in Northern Cyprus continues to grow rapidly and attract investors from all over the world. Here are some figures and useful information for those who are considering investing in real estate and construction in this region:

Interested in real estate in Northern Cyprus? See the full list of current real estate

  1. In 2021 the volume of investments in the construction sector Northern Cyprus amounted to about $450 million, an increase of 6% over 2019.
  2. On average, the cost of housing in North Cyprus increased by 7.2% in 2021 over the previous year. This growth indicates the stability and outlook for the real estate market in the region.
  3. Residential properties on the coast are especially in demand among investors. The average cost per square meter in such areas is about $ 1,300. However, in central urban areas, the average cost per square meter is about $ 900.
  4. The rental rate of housing in Northern Cyprus is also showing growth. On average, renting a one-bedroom apartment in the city costs about $ 300 a month, while renting a villa on the coast can reach $ 1,500 a month or more.
  5. Under the government's construction investment promotion program, investors who invest in construction projects worth $ 500,000 or more can expect tax breaks and other benefits.
  6. Due to the active development of tourist infrastructure, the demand for housing and hotels in the resort areas of Northern Cyprus is steadily growing, which creates additional opportunities for investment in construction and real estate.
Is it profitable to invest in real estate in Northern Cyprus in 2023?

Overall, real estate and construction in Northern Cyprus offer attractive investment opportunities. Given the growing demand for housing and commercial real estate, as well as the development of tourist infrastructure, investors can expect stable growth in their investment in real estate and construction.

  1. The commercial real estate market also continues to develop. On average, the cost of renting an office space in the city is from $ 10 to $ 15 per square meter per month. Industries such as tourism, trade, and information technology contribute to the growing demand for commercial real estate, which makes this sector attractive for investment.
  2. Construction companies in Northern Cyprus offer a variety of services for investors, including land selection, design and construction of properties, as well as management and rental of real estate. This allows investors to save time and resources by delegating most of the work to professionals.
  3. An important aspect of investing in real estate in Northern Cyprus is the legal framework. Despite the difficulties associated with the political situation, the Government of the Turkish Republic of Northern Cyprus actively cooperates with investors and offers various support measures to ensure transparency and protection of investments.

Our experts will help you choose a registered property that you like for free. And everything is absolutely free — go to website, answer 4 questions and get a selection of objects for you

When considering investment opportunities in real estate and construction in Northern Cyprus, it is important to take into account the local specifics and risks associated with the political situation. However, attractive growth opportunities and a variety of investment projects make this market interesting for those who are looking for stable and promising investments.

Tourism and hospitality

Is it profitable to invest in real estate in Northern Cyprus in 2023?

As already mentioned, tourism is a key sector of the Northern Cyprus economy. In 2019, the tourism sector generated revenue of about $ 1 billion. Investments in hotels, resorts and other tourist infrastructure can bring good returns. For example, the average occupancy of hotels in Northern Cyprus is 65%, and the average cost of a room in a 4-star hotel is about $ 100 per night.

Infrastructure projects

Northern Cyprus is actively developing its infrastructure to ensure long-term economic growth. The investment plan for 2021-2025 provides for projects totaling about $ 1.5 billion. Among the priority areas are the development of transport infrastructure, utilities and energy. Investing in infrastructure projects can provide long-term growth prospects and stable returns.

Innovation and high-tech industries

Northern Cyprus is also committed to developing innovative and high-tech industries. As part of the development strategy for 2021-2030, it is planned to create technology parks and innovation centers that will contribute to the development of science, technology and business in the region. Here are some key aspects and prospects for the development of innovation and high-tech industries in Northern Cyprus:

  1. The main areas of innovation in Northern Cyprus are information and communication technologies, biotechnology, energy, medicine, education and environmental technologies.
  2. The Government of Northern Cyprus allocates funds to support innovative projects and enterprises. In 2021, the volume of state support for innovation amounted to about $ 20 million, which is 15% more than in 2019.
  3. As part of the development strategy for 2021-2030, it is planned to create several technology parks and innovation centers. These facilities will offer businesses and research organizations favorable conditions for developing and implementing new technologies and products.
  4. Northern Cyprus actively cooperates with international organizations and companies in the field of innovation and technology. North Cyprus regularly hosts international scientific and technical conferences and exhibitions that help attract foreign investment and exchange experience.
  5. The education system of Northern Cyprus is also focused on supporting innovation and developing high-tech industries. Local universities actively develop research activities and cooperate with industrial enterprises and research centers.
  6. Investors interested in high-tech industries and innovation can consider setting up joint ventures, investing in startups and developing innovative products in Northern Cyprus.

In general, Northern Cyprus is actively striving to become a regional center of innovation and high-tech industries. Thanks to state support, infrastructure development and cooperation with international organizations and companies, the region provides attractive opportunities for investors interested in innovative projects.

Is it profitable to invest in real estate in Northern Cyprus in 2023?
  1. Northern Cyprus is also attractive for investors due to its geographical location, which facilitates access to the markets of Europe, Asia and Africa. This can significantly simplify the expansion of international cooperation and the creation of a network of partnerships for innovative companies and startups.
  2. There are several technology incubators and accelerators in Northern Cyprus that help aspiring entrepreneurs and startups develop their ideas and products. These organizations provide mentoring support, assistance in attracting investment, and access to partner networks.
  3. Some sectors that can offer particularly interesting opportunities for investment in innovation and high-tech industries in Northern Cyprus include software development, artificial intelligence solutions, medical technology development, and renewable energy technologies.

By exploring opportunities to invest in innovation and high-tech industries in Northern Cyprus, investors can find a wide range of promising projects and sectors to invest in. Together with active government support and infrastructure development, investment in innovative projects can be profitable and ensure stable growth in the long term.

3. Advantages and risks of investing in Northern Cyprus

Is it profitable to invest in real estate in Northern Cyprus in 2023?

Advantages:

  1. Low taxes: Northern Cyprus offers an attractive tax system for foreign investors, with a corporate income tax rate of 20%. In addition, the Government provides various tax incentives and incentives for investment in certain industries and regions.
  2. Business development opportunities: Due to its strategic geographical location, Northern Cyprus offers access to the markets of Europe, Asia and Africa, which can significantly contribute to the development of international business.
  3. Accessibility to foreign investors: Northern Cyprus is open to foreign investment and offers reliable infrastructure, quality services and access to qualified professionals, which creates a favorable business environment.
  4. Infrastructure development: The Government actively invests in the development of transport, energy and communications infrastructure, which improves the conditions for doing business and attracting investment.
Is it profitable to invest in real estate in Northern Cyprus in 2023?

Selection of properties in Northern Cyprus https://worldestate.homes/podbor-quiz/cyprus/

Answer 4 questions and get a selection of places for you

Disadvantages:

  1. Political instability: The political situation in Northern Cyprus may have an impact on the investment climate. Due to the non-recognition of the Turkish Republic of Northern Cyprus by most countries, investors may face certain risks associated with political uncertainty.
  2. Regulatory restrictions: Investors should be prepared for the fact that there may be certain regulatory barriers and bureaucratic obstacles in Northern Cyprus that may make it difficult to conduct business and attract investment. However, the Government is actively working to simplify administrative procedures and reduce barriers to foreign investors.
  3. Possible sanctions: Due to the international political situation and the non-recognition of the Turkish Republic of Northern Cyprus by most countries, investors may face the risk of possible sanctions or restrictions by some countries or international organizations.
  4. Limited access to finance: Due to the political situation and the non-recognition of Northern Cyprus, foreign investors may face limited access to international finance, such as loans from international banks or financial institutions.
  5. Dependence on Turkey: The economy of Northern Cyprus is heavily dependent on Turkey, which is the main source of investment, tourist flow and trade. This dependence can create risks for investors in the event of changes in political or economic conditions in Turkey.

In general, investing in Northern Cyprus has its advantages and risks. Foreign investors who want to invest in this region should carefully study all aspects and assess possible risks in order to make an informed decision and ensure a successful investment.

Recommendations for potential investors

Is it profitable to invest in real estate in Northern Cyprus in 2023?
  • How to choose suitable investment properties: Study the market and industries in which you plan to invest. Conduct a comprehensive analysis of potential investment properties, taking into account their financial condition, growth prospects and stability. Also pay attention to the political and economic situation in the region, which may have an impact on investment.
  • The importance of investment diversification: Investment diversification is a key factor in reducing risks. Diversity in the portfolio reduces dependence on individual assets or industries, which reduces the likelihood of investment losses due to unfavorable market conditions.
  • Tips for working with local partners and consultants: Working with local partners and consultants can facilitate the investment process and speed up the implementation of projects. Choose reliable and experienced partners who have a good reputation in the local market. They can help you navigate local laws, regulatory restrictions, and cultural backgrounds, as well as provide access to the resources and contacts you need to run your business successfully.

4. Results and prospects of investment in Northern Cyprus

Northern Cyprus is an interesting region for investment, with many opportunities in various industries, such as real estate, tourism, infrastructure projects and high-tech industries. Despite certain risks associated with the political situation and currency fluctuations, the advantages of investing in Northern Cyprus include low taxes, accessibility to foreign investors, developed infrastructure and a strategically favorable geographical location.

Is it profitable to invest in real estate in Northern Cyprus in 2023?

For a successful investment in Northern Cyprus, it is recommended to conduct a thorough market analysis, select suitable investment properties, diversify your investments and cooperate with local partners and consultants. It is also important to take into account the risks associated with political instability and regulatory restrictions, and build your investment strategy with these factors in mind.

In the long run, with the improvement of the political situation and further development of the economy, Northern Cyprus can become an even more attractive region for investment. Investors who closely monitor market developments and adapt their investment strategy will be able to take full advantage of the opportunities and prospects that Northern Cyprus offers.

Frequently Asked Questions

Answer 1

Answer 2

Question 1

Answer 1

Question 2

Answer 2

    Find the best properties - just fill out the form

    By clicking the "Submit" button, you agree to the site's privacy policy

    Contacts

    Do not miss the start of sales of residential complexes at the best price
    Subscribe to a group on WhatsApp

    Leave a request

    Please fill in the phone number in international format

    Didn't find what you were looking for?

    Answer 4 questions (it will take 30 seconds) - get an individual selection of relevant real estate objects + Guide " How to choose a property abroad”

    Interesting? Click " Start selection”

    Start selection process

    Or just email us at WhatsApp - our specialists will answer all your questions

    Didn't find what you were looking for?
    Answer 4 questions - get a personalized selection of objects for you
    Start selection process
    en_USEnglish