How rewarding are the investment opportunities in North Cyprus?
Property values in North Cyprus have remained constant and are currently growing by over 10% per year in major investment zones, despite the global financial crisis. This is due to the fact that they were developed using private funds rather than bank loans. There has been a consistent increase, whilst prices in the Greek Cypriot South have dropped by an average of 40%. Even though there are no bank mortgages for foreign persons, several developers offer minimal deposit and simple payment options.
Until 1960, both parts of Cyprus were British colonies, with Greek and Turkish Cypriots coexisting under British control (hence English is still an official language on both sides). Unfortunately, the Greeks launched their ENOSIS campaign against the Turkish Cypriot minority (about 28 percent) in the 1950s and 1960s, resulting in the island’s partition into the Greek South and the Turkish North. Unfortunately, there is still a lot of disinformation coming from the south of Cyprus regarding what is going on in the north. Both Turkey and the European Union invest in North Cyprus. Turkey has been a major donor to North Cyprus since 1974; nevertheless, it is crucial to note that the European Union (via its European Enlargement plan) has provided the TRNC with $259 million in recent years. Furthermore, Turkish Cypriots, like Greek Cypriots, are European citizens.
The reason for the European money is that it is expected that the island will soon be reunited into two zones, putting Cyprus in a far stronger political and economic position, given its already strategic importance in the Eastern Mediterranean as a result of the recent discovery of vast oil reserves.
This is why investing in North Cyprus is such a smart idea. One of the reasons why many international investors are racing to acquire property in North Cyprus is that any favorable referendum for bi-zonal reunification will almost certainly result in a massive boost in the value of property in the north. By the end of 2015, this referendum is anticipated to take place. If the Greek Cypriots vote NO, as they did in 2004, the North is likely to obtain recognition and direct flights, making it a win-win situation.