Real estate in Northern Cyprus by the sea is the best investment option for those who are not ready to lose their savings.

There are various investment strategies that bring different returns, and if you invest wisely, you can get a capital gain of 30-40%, and sometimes 60%.

In this article, we will talk about an investment strategy that allows you to get the maximum income.

1 Purchase at the excavation stage

Obviously, an apartment under construction costs much less than a finished one. Capital gains directly depend on the stage at which you invest.

And if you are planning to buy property in Northern Cyprus for investment, consider projects at the initial stage of construction.

On average, real estate from a developer in Northern Cyprus will increase in price by 30-40% during construction, but in successful projects this indicator reaches 70%. To achieve this growth, real estate must be unique, with a limited supply on the market.

Let’s consider how much you can earn on real estate from the start to completion.

For example, the purchase of a studio in Northern Cyprus at the excavation stage in one of the investment projects will cost £70,000. By the time construction is completed, in 2-3 years, the market price will rise to £120,000. So, you will earn at this stage about £30,000-50,000.

In some cases, you can make money by buying property in Northern Cyprus, receiving an annual return on investment in the form of cashback. Its size is 6% of the down payment.

If the apartment cost £100,000 and you paid the full amount, then during the construction period you will earn

£100,000 х 6% х 3 years = £6000 х 3 = £18,000

This is 18% of investments.

2 Investments period

To get the most from your investment in property in Northern Cyprus, after the key collection, it is better to either sell the property or rent it out for a couple of years, receiving an average of 8% per annum of the cost of housing.

If the apartment costs £100,000, then the guaranteed rental yield is:

£100,000 х 8% х 3 years = £8,000 х 3 = £24,000

This is another 24% of the investment.

After this, it is necessary to sell the property, because after 3-5 years of operation it will lose its presentation and decrease in price.

Therefore, if you want to earn the maximum, consider buying real estate at the foundation stage and selling at the “peak” price, and we will help you select the most liquid and investment-attractive projects.

3 Uniqueness of the project

The investment property that you are going to buy should be unique, there should not be many similar properties on the market. Limited supply increases rental demand and price growth potential.

Several factors influence the uniqueness of an investment property:

Location:

In order for real estate to be sold or rented out as profitably as possible, you need to choose the right region with high demand for housing and low competition. First of all, these are tourist destinations, such as Iskele or Esentepe, where a large flow of tourists is guaranteed.

Also take a closer look at real estate on the first coastline, as the number of land plots is limited, so real estate by the sea in Northern Cyprus will always increase in price.

If there are many free offers in the region, this is a wake-up call, meaning that it will be more difficult to rent or sell a property.

Infrastructure:

One of the key points important when choosing an investment property is the infrastructure of the residential complex.

Modern architecture, well-thought-out layouts, view from the window, proximity to the beach, the presence of a swimming pool, shops and restaurants add to the attractiveness of the apartments, which means it increases the chances of selling real estate at a higher price.

The best objects for investment:

What objects are the most attractive from an investment point of view? Studios are the most affordable property in Northern Cyprus and have the highest purchasing power. But in the real estate market of Northern Cyprus there are not many offers of large apartments and villas, in which the percentage of occupancy is 90% versus 60% of small apartments. Therefore, if you have a large budget, it is better to consider apartments 2+1, and more, as well as villas.

4 Risks of buying real estate

Buying property at the construction stage is not only a higher income, but also greater risks, so first of all you need to choose a reliable developer who will fulfill his obligations. We work only with trusted companies that have built many projects and have a reliable reputation.

In this article, we have shared an investment strategy that allows you to make the most of your investment in real estate in Northern Cyprus. We hope that we have fully answered the question, is it worth buying property in North Cyprus for investment. You can always contact our experts for a free consultation and take the first step towards buying your dream home in Northern Cyprus.