Key changes to the regulations and rules for foreigners to acquire real estate in Northern Cyprus are set to take effect any day now. They introduce the possibility for one person to acquire more investment properties, which will create even more demand and incentive for investors.
We ourselves have a lot of inquiries about how much real estate a foreigner can buy,whether shares in land are bought and how to secure this. This legislation will regulate this issue even better, at the same time it will trigger agreater demand in the market, which will increase apartment prices. More interest, is always ultimately a higher price – notes Szymon Darznik, co-owner of investcjenacyprze.pl, and adds:
A factor influencing the subsequent Investment price increments in the following years, are changes to local development plans. In some municipalities, new local development plans severely restrict the already truncated possibilities for construction on a given site. The main factor is the provision on biologically active area, which for each plot must be min. 35 or even 45 percent.
Restrictions in construction law a blow to investors’ pockets
Building heights will also be limited. As a result, in places where skyscrapers of 30 stories were being built it will now be possible to put up to 8-9 stories.. Where you could have 3 floors plus a so-called loft, that is, a floor that was about 2 meters higher than standard by having mezzanines, we will now be able to build up to the level of two-story buildings already without mezzanines. This means that the meters adapted on the ground can be developed less.
The cost of producing that meter has also become higher by raising the lowest national wage and raising taxes for developers. A square meter of housing already in the very making will be much more expensive and there will simply be less of it on the market – Szymon Darznik describes the plans for change.This drags with it further increases, further increases in the price of the finished square meter for the investor, and so will raise the interest of buyers when they probably belatedly see the coming opportunity and the changing regulations I mention– he adds.
Investors want more and more
Until now, the provision stated that one foreigner had the right to acquire one property in full land ownership, strictly one unit in his name. It took a lot of combining and playing it out in such a way that our investors who wanted to acquire more properties simply had to rewrite them, for example, to their relatives. Since the new regulations came into effect, this problem is disappearing.
Each investor will be able to acquire more than one property. The only catch in the whole puzzle is that in order to acquire more properties, the investor must acquire the first property he has on the island in full ownership for residential purposes. That doesn’t mean he won’t be able to rent it out. He will be able to acquire each subsequent one on himself as a vacation home. Such homes have a much more favorable tax rate at the time of registration and payment of taxes for their acquisition.These taxes are to be significantly reduced, and their amount has also been a bit of an obstacle for our investors– explains Szymon Darznik, investcjenacyprze.pl.
In addition, such real estate will be fully secured by registering with the relevant department. The investor will be sure that the developer is a verified, registered entity with a license that can perform this type of construction and sell it, all land titles are settled, the investment is reported to the authority. The investor will not have to go through all the procedures himself. In our case it was we who implemented these procedures for the investor – we checked the land, the developers’ license their financial condition, etc. Now it will actually happen automatically– he explains.
End of territorial dispute the beginning of a new era in Cyprus
An important factor influencing investor sentiment is the changing narrative when it comes to the topic of the island’s partition – ending the dispute between one part and the other. In fact, this has already been made final by the European Court of Human Rights, rejecting another request by the southern part to reconsider as to the amount of claims.
Compensation has been ordered for one party as well as the other, which actually results in the final closure and exhaustion of the legal legal route set forth in the law– describes Simon Darznik, and adds:In terms of any dispute settlement at the government level, the only way the southern side can use is to submit a request to the northern side, the Turkish Republic of Northern Cyprus, which the southern side does not recognize. On the other hand, by submitting such a request, it would automatically have to recognize this party, which again leads to the fact that it would completely exclude any further claims by this party. And here the circle closes.
This situation leads to such an impasse, with which the southern part has to come to terms with the recognition of the northern part, which has triggered further activities, such as negotiations between the two sides involving also the president of the southern part, the northern part and Turkey regarding the opening of more border crossings, the signing of agreements on cooperation on the island of both sides, for example, in the event that any natural hazards or disasters happen on one side as well as the other.
Natural goods key to investment success! RAW MATERIALS!!!
Another gamechanger in the market is the gas deposits found, the beneficiaries of which are both northern and southern parts and Turkey. The deposits are located in the territorial waters of Cyprus and just Turkey. Arrangements have already been made to begin production in 2027 and to build a transmission hub on the northern part of the island for these deposits to Turkey, among others. The Turkish side will therefore send billions of euros more to expand infrastructure in Northern Cyprus to secure its business and secure the area.
This will attract more investors – assures Szymon Darznik, then adds:The company that will take participation in the exploitation or exploration of these deposits is the American Exxon. This is a huge amount of money, and in fact each party will benefit from this situation, not only Southern or Northern Cyprus, but also the United States and Europe. The exploitation of these deposits is to replace the import of Russian gas to Europe – now that’s an eyesore for those in power!
Time plays against investors
At this point, North Cyprus is already seeing more interest in land, investment, including from Turkish citizens. We are talking about large investors who are buying up entire tracts of land for the construction of casinos, hotels and resorts. And when such capital enters the game, it definitely affects the development of the entire economy, not just the strictly hotel market, but what is going on around it – both the infrastructure and the increased interest in this tourist destination.
For the rest, statistics speak of a steady year-on-year increase in the number of tourists. One example is the airport on the northern part, in Ercan – it is a modern airport, recently expanded. It is already the largest airport in all of Cyprus and handles 4 million flights a year. In addition, several airlines have announced that they will start operating flights to Europe, which will further increase tourism and interest in this part of Cyprus An example of this is the Polish LOT and operators like wakacje.pl, which have added Northern Cyprus to their offerings– admits Szymon Darznik.
Cryptocurrencies – getting on the HOSSIE in 2025!
In North Cyprus it is legal to buy property with cryptocurrency we have a queue of investors who are already booking properties to realize their KRYPTO profits in a way that will not generate capital tax losses for them and at the same time allow them to remain anonymous.
This is a very strong group of people that will further drive prices and the market! And one of the last and most important factors that will change the investment property market in North Cyprus in the near future – in all likelihood, the first mortgage products for foreigners will begin to be offered next year who will want to invest on the island and finance the construction with a mortgage. This will cause a huge price shot and a huge increase in interest. Those who didn’t have enough cash to invest here and those who felt there was too much risk regarding investing their money in this very location will come into play. We’re talking about a 30-35% equity contribution and a construction loan.
We know very well that in any market, when bank loans come in, property prices go up 10-15%, sometimes 20% year-on-year. Even more so in this part of the island, where the market has not yet known such products, and everything has so far been based on cash. We are convinced that the real estate market in North Cyprus will grow significantly in the coming years, and now is the best time to take an interest in it– he concludes.
