Low costs, high return
The low cost of education, low cost of living, and cheap student rental housing, with many universities based on English language instruction, make studying in North Cyprus very affordable and attractive to foreign students.
Annual rental yields reached more than 10% between 2016 and 2020, but due to the global pandemic, this figure has dropped dramatically to 5%, and with the depreciation of the TL against the exchange rate, this figure is likely to remain stable for a few more years.
However, this does not mean that real estate investments are no longer attractive! The facts show that real estate investment in the Kyrenia region, the most popular residence and investment location especially for expats such as British, Russians, Germans, Iranians and Scandinavians, will continue to be more profitable than ever. The main reason for this is the limited number of building sites and the size of available plots. Not to mention that the TRNC’s Urban Planning Department has enacted a new law that limits and reduces the number of units to be built specifically in and around Kyrenia’s city center.
Promising real estate market
If you are looking to buy a property in North Cyprus, it is not difficult to understand that with the growing number of foreign students, the tourism industry and a healthy number of foreign workers, the demand for rental properties in Kyrenia and the surrounding areas such as Karaoaoglanoglu, Lapta and Alsancak in the west and Ozankoy and Catalkoy on the eastern side of Kyrenia city center will increase again. Demand and supply will drive developers to build more properties for investors, but under new building codes, the number of units will be limited to building land only.
This new rule will only increase costs for units. Given the impact of global inflation in construction materials, real estate investments in Northern Cyprus in the Kyrenia region look promising and can generate capital appreciation of over 30% in the near future.
So if you make an investment of 70,000 GBP in Kyrenia city center, you can walk out with a profit of almost 50%, including a minimum income of 5% for 5 years and a 30% increase in value.
According to Forbes magazine, the Iskele region of Northern Cyprus has been voted the best seaside location in the world for buying or investing in real estate abroad. However, Kyrenia alone will continue to be more profitable than any other city, not only in the Northern Cyprus real estate market, but worldwide.