What are the advantages and profitability of investment, types of investment income, dynamics of price growth, types of rent, and rental rates for different types of real estate – the key questions of the investor when choosing real estate for purchase.
Today Northern Cyprus is the leader among the countries with high investment potential. The rapid development of the island and its infrastructure attracts investors from all over the world. In addition to infrastructure, Northern Cyprus is gaining popularity as a tourist destination, thus increasing the demand for rental properties.
The main advantages of investing in North Cyprus:
- A large selection of real estate with affordable prices and the possibility of buying by installments and on credit;
- A minimum of bureaucratic complications and simplicity in the process of titling;
- The loyal tax system for real estate;
- Guaranteed rental income;
- Visa-free regime;
- Obtaining a residence permit when purchasing any real estate. Moreover, the residence permit is received not only by the owner of the home but also by all family members (husband/wife, children), with the prospect of obtaining citizenship;
- High level of education, well-developed social infrastructure, and quality medical care.
Types of real estate investments:
- Purchase of real estate for resale: Purchase of an object at the zero stage of construction at its minimum cost. Upon completion of construction, the object is resold at the market price of finished projects – it usually takes 1.5-2 years. For this purpose, it is necessary to analyze the market to find out which properties and in which area of the island is in high demand. Today, prices increase with a trend of 10-15% per year, which guarantees an increase of 20-30% in the value of the object upon completion of construction.
- Purchase of real estate to rent out: Short-term lease – resort real estate, relevant during the tourist season (from April to November). Long-term rentals – urban facilities, especially near universities. Guaranteed rental from the developer. * You can find out more about the types of real estate rentals in our blog.
- It is also possible to combine two options: buy a property, rent it out, receive rental income, and then sell it at a large profit.