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After a blisteringly hot summer, winter is again upon us and appears to have
brought renewed vitality to a somewhat flagging [Northern Cyprus] property
market.
Buying trends [in Northern Cyprus] have changed dramatically over the past few
months, with more and more people purchasing properties [Northern Cyprus
apartments etc.] in areas 'off the beaten track'. An example of this is the
village of Sadrazamkoy, previously dismissed as being too rural and too far
away from civilisation [Kyrenia]! With its quaint atmosphere and distance from
Kyrenia town centre, Sadrazamkoy had in the past been more renown for its bird
watching than its bulldozers; however, a recent flourish of interest in the
area [for Northern Cyprus properties] has seen more and more [Northern Cyprus]
construction companies heading east. Estate agents [of Northern Cyprus] all
over the TRNC [Northern Cyprus] are reporting a great deal of interest in the
less populated parts of the island [for Norhern Cyprus properties such as
apartments], leading us to ask the question: why?
Investors' Paradise
Many of the Brits moving to northern Cyprus prefer to be further away from the
bright lights of the city [Kyrenia] because they say they have had their fill
of the hustle and bustle in the UK, while others who are purchasing holiday
homes [Northern Cyprus apartments etc] say they just prefer the more rustic
north Cyprus experience. Whatever the reason behind the move, it's big business
for the [Northern Cyprus] estate agents.
Investing in property [Northern Cyprus apartments etc] in northern Cyprus has
taken off in a big way over the past year, with many opportunists buying whole
apartment blocks at a time or large chunks of holiday developments with a view
to reselling in a few years when [Northern Cyprus] property [apartments etc]
prices have risen. Places such as Sadrazamkoy and Kayalar are perfect for such
purchases as [Northern Cyprus] property [apartments etc] prices are still
relatively low and the initial outlay is reduced dramatically, which attracts a
lot of first-time investors. Many investors [of Northern Cyprus properties] are
interested in the possibility of using rental income [of apartments etc] to
offset their mortgage payments. Of course this is a possibility, but nothing's
written in stone. At present north Cyprus fledgling tourist trade seems to be
favouring all-inclusive package visitors (rather than independent,
self-caterers), although how this will pan out in the future is anyone's guess.
Rustic Charms
Few would argue that the area that has seen the most of the property
[apartments etc] boom in northern Cyprus is Esentepe. With the proposed 18-hole
golf course project and also the promise of a new marina, Esentepe is set to
become one of the hottest locations on the island [Northern Cyprus], with some
already having dubbed it 'Little Monaco'! There are numerous developments under
way in the area, and one of the most prominent developers in the area is
undoubtedly Northern Cyprus Properties, who have 5 separate projects in
Esentepe alone.
"Without a doubt, Esentepe is the one place where we sell the most properties
[Northern Cyprus apartments etc]," said Tahsin Özbağ, director of Northern
Cyprus Properties, "and we have many more projects planned in the area over the
coming months."
Esentepe boasts amazing views and its location is sufficiently far away from
Kyrenia so as to invoke the feeling of being "at one with nature", yet it is
just a 20 minute drive from the city centre [Kyrenia] , so it's not hard to see
why holiday makers and locals alike are flocking to the area to purchase their
dream houses [Northern Cyprus apartments etc]. However, the traditional focus
for home-buyers [of Northern Cyprus properties] has up until now been limited
to holiday apartments in Kyrenia and the surrounding coastal villages, but now
people seem to be broadening their horizons. Much of the property for sale
[apartments etc] in northern Cyprus is antiquated and it's just as easy to find
an old-world apartment oozing Ottoman charm or an isolated mountain hideaway
[in Kyrenia] in need of restoration. Construction work is feverishly trying to
match the anticipated housing boom, adding new developments to north Cyprus'
impressive property [of apartments etc] portfolio.
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The growing number of estate agents in northern Cyprus testifies to the stilI
burgeoning property [apartments etc] market. It seems that you can't go
anywhere without seeing a new estate agent [in Northern Cyprus], and many
already established agencies have opened second branches, such as Unwins,
Portland and Henry Charles Estates, which is surely testament to the fact that
there is still business there for the taking. In the last five years, more than
2,000 foreigners have bought property [apartments etc] in north Cyprus and this
number looks set to rise dramaticalIy over the coming years - if there is no
change in the foreign immovable property ownership law [of Northern Cyprus].
"Exaggerated Propaganda"
The unpopular 125 year leasehold proposal [of Northern Cyprus] has been met
with anger and disappointment by potential purchasers [of properties such as
apartments etc] and estate agents alike, who believe it will not only have
negative effects on the property market [of Northern Cyprus], but also on the
country's economy, as investments in the country [Northern Cyprus] will slow
down dramaticalIy, perhaps ceasing altogether. However, the proposal has been
defended by Prime Minister Talat, who says;
"We simply have many complaints about the growing number of [Northern Cyprus]
properties [apartments etc] being sold to foreigners. It is true that because
of exaggerated propaganda many foreigners have been buying in Cyprus. This has
created a lot of anxiety among our people. People started accusing us of
selling out the whole country. We have made some investigations and found out
that this practice is very normal, particularly among the British. We have even
adopted the same period of time, 125 years, for the leasehold as in the UK to
make foreign buyers [of Northern Cyprus properties] feeI more confident about
the whole matter."
Whether the bill becomes a law [of Northern Cyprus] remains to be seen, and
whatever the outcome it is unlikely to be finalised during the next few months,
as efforts are ongoing to form a stable government in the TRNC [Northern
Cyprus], with a proposed general election on February the 20th 2005 if the
current coalition initiatives fail.
Worldwide Recognition
Following the success of the Property Investor Shows in London and Manchester,
some north Cyprus estate agents are planning on peddling their wares at
international property exhibitions all over the world. Northern Cyprus
Properties reported a considerable amount of interest in the island when they
went to Dubai in September, and are planning to exhibit again at the next Dubai
Property Show in February, this time in a more senior position. They also have
plans to exhibit at [Northern Cyprus] property shows in Russia, Kuwait and Hong
Kong, as well as the Property Investor Shows in London and Manchester, surely
giving them the title of 'Most Travelled Estate Agents! [of Northern Cyprus]'
One thing is for sure, promoting the TRNC [Northern Cyprus] in different
markets can only lead to more growth and recognition for the country [Northern
Cyprus]. Although the last thing we want to see is apartment block on every
spare plot of land [in towns like Kyrenia ], the construction trade is an
essential part of the Turkish Cypriot economy and the more we can do to boost
this, the better!
By Cemal İmren
KUZEY KIBRIS HOME
ISSUE 24
DECEMBER 2004
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