Investment income

One of the main reasons for buying property, overseas in particular, is an opportunity to generate income. Foreign buyers have discovered Northern Cyprus, and there has been a great demand for property here for a few years.

Most often foreign property buyers are interested in the following:

1. the dynamics of price growth
2. income from property investment
3. rental income and the types of rent in Northern Cyprus

1.The dynamics of price growth

Steady growth in tourist flow, sustained demand for property as well as the lack of new housing units have led to the increase in real estate deals, and, as a consequence, increase in prices for residential property.

For example, the minimum cost of a standard 1+1 apartment in Northern Cyprus in 2005 was £30,000, in 2015 – £45,000, and in 2023 already about £70,000.

Given the steady rise in prices, the resale of new property in Northern Cyprus brings significant income (often in a short period).

2 .Income from property resale

The most profitable type of investment is the purchase of property at the construction stage, currently, the annual growth of the property value is 10-12% on average. Depending on the investment period the resale proceeds can reach the mark of 50% (when investing at the zero stage of construction).

In Northern Cyprus the resale takes place at the construction stage and even before the full repayment of the purchase price.

The changes in prices for a studio apartment during the construction period (from the initial stage of construction till the completion stage).

3.Rental incomeу

Rent prices in Northern Cyprus are growing as well. In Famagusta, for instance, rental rates have increased by 50% on average for the last 3 years.

There are the following types of rent in Northern Cyprus:

Long-term rent is more common for city property, where there are a lot of big universities*. The city property in Nicosia, Famagusta, Kurenia is rented out quite well. The tenants are mainly students (there is a lack of dormitories; moreover, often it's cheaper to rent a flat as the dormitory fees are quite high).

The income from long-term rent is 6-7% per year on average, but it also has some advantages. First, rental contract is concluded for at least a year. Second, an advance payment is usually made for 6 months or even a year.

*FYI. More than 100,000 foreign students study in Northern Cyprus universities annually.

A long-term rental income in Northern Cyprus (Famagusta, Kyrenia)

Short-term rent is more common for holiday property. It's popular during the tourist season, which is one of the longest in the Mediterranean. A short-term rent is calculated and fixed per one day. The rental prices vary depending on the season and reach the highest mark during the so-called high tourist season, which lasts from May to October (6 months). But owing to the local climate, there are a lot of tourists in April and November as well.

For getting the most of your rental property, you should choose up-to-date seafront complexes with a well-developed infrastructure.

Short-term rent is the most profitable rental option . In this case, you can earn much more from short-term rent in high season than from the yearly long-term rent in the city. An average income in this case is 10-12% per year. 

Guaranteed rent – is also a great option for holiday property. This type of rent is provided by many property developers in Northern Cyprus. The income from guaranteed rent to 8% per annum (depending on the project, property type and developer).

This rental option is great for those who want to avoid the hassle of addressing any rent-related issues (property maintenance, looking for tenants, rent collection, etc.). You just surrender your apartment to the management of the company.

To sum up, we can say that currently, the real estate market in Northern Cyprus has a great potential for sustainable growth and thus provides great investment opportunities.

When choosing a particular project, you should clearly specify your requests to choose an income-generating instrument that is most suitable for you.

Casa di sole investment LTD will gladly assist you in a comprehensive resolution of any issues and tasks related to buying real estate in Northern Cyprus.