Day 37: Real Estate In Northern Cyprus

Dear 40 Days To Your New Life In Europe Student,

Northern Cyprus is the part of Cyprus that is more Turkish in language, culture, and politics. The island is under the control of a single government, and there is no difference in the citizenship of those from the North as opposed to those from the South, but the North is a self-governing body densely populated by Turkish-speaking Cypriots.

Despite the political issues, business continues as usual on both sides of the (unrecognized) border… though prices remain more affordable on the Turkish side.

Northern Cyprus also has the advantage of holding most of the island’s coastline. As well as attracting sun worshippers, it has a strong casino industry and a burgeoning medical tourism sector. The newly upgraded international airport here is a testament to the increase in visitors. And all of this means an increase in demand for tourist accommodation.

This, therefore, is the area where we see the most potential right now—and the best property prices, which run between a quarter to half of what you would pay elsewhere in the Mediterranean. In Northern Cyprus, with the low entry cost—and the chance to spread payments over a number of years—you could put your new home in the sun on your credit card.

The best deals we’re seeing here are in pre-construction projects at coastal resorts where your investment can be fully turn-key. Prices start from around US$75,000 and net rental yields are in the 8% to 10% range—a level you’d struggle to find in other parts of Europe. On the popular Spanish Costas, for example, average yields are in the 4% to 6% range. To get those, you’d be looking at a minimum entry of US$350,000.

Though Northern Cyprus takes up just one-third of the island’s land area, it has the most coastline. But it’s not just beach enthusiasts that flock here. Gambling was legalized in Northern Cyprus in the 1970s (only legal in the South since 2018). Since the 1990s, a steady stream of gamers has been hitting the region’s casinos. It’s been dubbed the “Las Vegas of the Mediterranean”… yet it’s still possible to enjoy a quiet, relaxing break here.

Medical tourism is another growing sector. First-class hospitals and health centers offer a range of procedures from IVF to hip replacement to dental implants at a fraction the cost of the United States and Europe.

Of course, the two million tourists that flock to these northern shores—whether for health reasons or pure beach time—need somewhere to lay their heads…