Centuries of Wisdom: North Cyprus Real Estate Trends Through Time-Tested Family Insights

We discuss the real estate market trends in North Cyprus, from the past, current, and upcoming real estate market predictions. I intend to recount the past through the lens of two interconnected stories. The first one is the general political and fiscal movements in Cyprus and the World, and its impact on the shifting real estate market trends.

The second one is through a portion of my own family’s real estate experience in Cyprus through the generations, to analyze the factors that proved worthy of consideration in real estate investments in the long run, reflecting on the lessons learned through first-hand experience. We will end with an outlook on the upcoming market trends and what makes North Cyprus a lucrative real estate investment destination.

The Early 1900s

Hot Markets: Agricultural and Farm Land and Sea Port Towns

The British Colonial Era in Cyprus

In the early to mid-1900s, Cyprus was a British Colony with a minimal capital city population of mostly governors of the time. It has always been an important political strategic location. The majority of the settlement was in seaport cities for trade purposes and in the villages where food production in agriculture and farming took place.

[Messoria Plains, Early 1900s] My great grandfather at the time was in possession of vast lands in the Messoria plains, it was essential to be in ownership of land at the time which was a source of food produce, and rent. The typical residential real estate at the time comprised private internal gardens, barns and storage for carriages, and two-floor buildings supported with arches made out of wood and local bricks. Layout was functionally designed, to enable large families to live together in harmony. These traditional homes today are hard to come by, I am lucky to still be in possession of one which I inherited from my grandmother.

1940s- 1960s

Hot Markets: Varosha, Cyprus

Final Years of The British Rule

Cyprus was emerging as an affluent holiday destination, especially the Varosha district by the clear waters of Famagusta. Some describe it as the Monaco of its time. Members of the Royal Family, and Hollywood stars like Marilyn Monroe and Sophia Loren all were vacationing frequently here. Hence this strip of coastline had emerging high-end hotels and affluent villas gaining more and more popularity.

1960s

Decolonized, Single State of Independent Cyprus

In the 1960s, Great Britain decolonized Cyprus upon popular global movements and protests. Cyprus has gained full autonomy and independence. The majority of the population is made up of Greek Cypriots, with minorities of Ottoman Cypriots and Armenian Cypriots, all living harmoniously for more than 500 years. They have gained full authority of governance.

[Nicosia, 1950s] In the 50s, my grandfather owned the majority of a village; and was the ‘muhtar’, [the village chief] owning multiple businesses. He had a little more than 700 donums of agricultural land, residential housing, and gardens of olives that produced a variety that was mostly used in making the most flavorful olive oil I have ever tasted, dubbed “the liquid gold”. He also had a traditional Cypriot coffee shop, and a barber shop, and was doing overseas trade. He was able to build on top of his inheritance from his father through hard work and the power of education.

He was a respected businessman and tradesman in his time. Despite this, when he decided to buy land in the Capital City Nicosia in the 1950s to develop residential housing, most people were skeptical as the city was mostly underdeveloped and pretty much far afar from where the real money lay at the time in this island which was in the produce and exports.

His vision was later proven to be beyond his time…

1970s- 1980s

Hot Markets: Nicosia the Capital

Two State Governing Body

The single state became unstable in the early 70s and by the mid 80s practically a two-state governing body was established on the island. As a result of this, North Cyprus was mostly isolated from the 80s until 2004, which limited foreign investment and local development. This period still has implications today as some of the opportunities that laid in nearby Euro-Mediterranean destinations 20 years ago, still are present today in North Cyprus. This period put a temporary pause on the time for North Cyprus until 2004, and these opportunities are expected to be present in the market until prices and development are caught up with the next-door neighbor Republic of Cyprus and other destinations in the Med.

[Nicosia in the 90s] In the ’90s my grandfather’s Nicosia homes became one of the busiest locations as in the 80s the government buildings were built in close proximity and corporate and political jobs were now playing a significant role in the economy of North Cyprus. As the location became a hot spot, my father and his siblings, demolished the residential homes and built an apartment building with commercial shops on the ground floor and residential units on the higher floors. Between the 80s and 2004 was a time that most foreign trade and tourism slowed down and corporate and political jobs gained importance in the local economy, thus Nicosia in the North expanded in population during this time.

1980s-2000s

Hot Markets: Kyrenia, and YeniKent

EU Admission and The Annan Plan

As mentioned earlier, between the early 1980s and 2004, Northern Cyprus was for the most part isolated following the two-state division; hence foreign investors were not common. This changed when the Republic of Cyprus applied for admission to the European Union where the EU suggested a one-state admission for the whole island, not as a two-state governing body.

This attracted a lot of foreign investors [mostly British and Turkish] in Kyrenia both in the city center and the coastal towns to the west and east, which are very beautiful with rich nature and Mediterranean charm. To the East Karakum, Dogankoy, Bellapais, Catalkoy and Ozankoy and the west the towns of Karaoglanoglu, Zeytinlik, Lapta and Alsancak had seen a boom in development as it had stagnated until then due to the isolation period experienced in the previous 20 years.

There was a strong appreciation in Kyrenia’s real estate market, which despite maturing in recent years still has a stable year-after-year increase in value.

Another real estate market that had seen rapid growth during this time was the YeniKent district of Nicosia, with new shopping and commercial avenues and modern and affluent homes being built rapidly. Most buyers in YeniKent were locals where as in Kyrenia were expats. Expats historically has been mainly comprised of retirees or holiday home owners, hence their needs and preferences are different from locals who need access to their place of employment, and good schools.

In 2004, the one-state admission to the EU was to an extent achieved. More importantly, the isolation of the North has ended in the most part. The Cypriots on both sides of the island obtained EU citizenship and the Republic of Cyprus got admission into the EU, despite North and South still having separate governing bodies, where talks regarding the reunification continue. Multiple crossing points to North Cyprus have been established [8 in total today]. Thus, access to EU airports of Larnaca and Paphos has been granted which had a major boost to the economy, appetite for investors, and tourism also began gaining speed in North Cyprus.

[Early 2000s, Kyrenia] In the early 2000s, my parents were having disagreements over their next real estate investment location to be. They were torn between two options; Bogaz and Bellapais. Bogaz was halfway between Kyrenia City and Nicosia City, it was a nice suburban area gaining popularity as the majority of the corporate workers were in Nicosia (the only non-coastal city in North Cyprus) but the beautiful life and fun were in Kyrenia. At the time Bogaz was a popular destination among the residents of Nicosia City to have a second-home with garden space a bit away from the City but not too far that the commute would be manageable (well 10 minutes to be exact). It was an ideal second home location for a working family. So most locals were buying in Bogaz; vast plain fields were turning into a suburban town and my mother’s vote was on this.

My father on the other hand liked the natural topography of Bellapais, a town on the mountains of Kyrenia overlooking the Mediterranean Sea, famous for its Gothic era Bellapais monastery and abbey, nearby beaches, and a tranquil life. This location was more popular among British expats. My father had the vision to see the natural beauty of this location and the scarcity of the available land for living spaces as the topography and nature only allowed for limited development. In addition, there were building restrictions in this location that ensured a controlled population growth which in turn meant a cleaner, safer living zone.

Versus Bogaz being mostly plain fields in between the two cities has had a lot more room to be built in. We ended up settling with the option in Bellpais at the time after careful consideration. This has proved itself to be the best decision as Bogaz over time lost its popularity with the shifting job markets. The corporate and political jobs lost their popularity with the devaluation of TL, and tourism on the other hand picked up with easy travel becoming available after 2004; the border crossings provided easy access to the European Union zone airlines of Larnaca and Paphos.

Bellapais retained its beauty over the years and has since been an ultimate destination for residents who could find something up for sale as the availability became scarce the prices soared. Today the prices have reached levels that are around 10 folds what we had paid in the early 2000s.

2004- 2019

Period Between EU Admission and the Pre-Pandemic Era

North Cyprus has seen steady growth and development in various industries. Being an island had its limitations in the production sector as shipping goods adds a layer of expense that makes goods exported more expensive in the overseas markets when compared to other agricultural and industrial nations.

However, this naturally re-directed the highly-educated Cypriot population into the service industries. Thus, tourism and hospitality, international educational institutions, healthcare tourism mainly high-tech fertility treatments, and real estate niches such as retirement homes, digital nomad homes, and vacation homes have gained popularity. People loved spending time on this warm island, with beautiful beaches, that had a safe, affordable, and healthy lifestyle for its visitors and residents. ?

[Mid to late 2010s, North Coast] In 2018, I returned to North Cyprus after completing my academic studies in England. Airbnb was recently gaining popularity at this time among other economy-sharing platforms like Uber, and I was looking at cash flow-generating investments. I invested in a unique British colonial-era home that was in really bad shape, but the location was amazing and the larger size of the land was also a bonus.

The Kyrenia mountain range was on one side, and the Mediterranean Sea was on the other, with a quaint sandy beach. It was located in a quiet town called Akanthou, on the North Coast of the island, just a short drive from the coastal cities of Kyrenia and Famagusta. I flipped the house and listed it on Airbnb, which has been generating a steady cash flow ever since, reaching 50% ROIs in recent years as the investment matured. Eventually, I ended up buying the adjacent plots of land. In the following years, this area developed further. The lands, including the corner plot facing the main road and junction road, became an important piece of commercial real estate. This investment is now valued over 8 times its original price tag that I paid, a mere half a decade later

Early 2020s

Hot Markets: Long Beach, Iskele, and The North Coast

Post Covid Surge In Demand & Key Factors Driving North Cyprus Real Estate Demand

In the early 2020s, as we have all experienced firsthand, the World had seen a deadly pandemic. This brought with it, deadly spikes in the big cities, to which most governments reacted with really harsh restrictions and a strict vaccination campaign of a vaccination with minimal long-term trial. Nevertheless, a fast solution was needed, as all of the major cities in the World were not self-sustainable and there were major supply chain disruptions in food, hygienic goods, and eventually energy and fuel.

The restrictions on movement and travel emphasized the importance of our access to good healthcare, social spaces within our smallest communities or homes, a healthier and more natural lifestyle, access to the outdoors, and a more self-sufficient, less population-dense way of living, ultimately highlighting the intrinsic value of local, sustainable, and resilient living environments.

The appetite for life or investment in a location like North Cyprus that ticked all of the boxes listed above all of a sudden saw a surge. North Cyprus, being one of the cheapest of these options available when compared to similar destinations like Portugal, became a rare gold dime. The pandemic really pushed people to put things into perspective, take a step back, and look at the bigger picture. A safe, Mediterranean lifestyle was attractive for many when all things were considered, and the working-from-home schemes that were highlighted by the pandemic made it a possibility for not only retirees but also working families and individuals.

In light of all of this demand and new-found demand drivers, two locations emerged in the North Cyprus real estate landscape. The first one is Long Beach, in Iskele which had seen rapid construction, to supply for the increase in demand. This location is characterized by resort-style living with many indoor and outdoor amenities offered to its residents within its gated community. It is located to the North of the famous Varosha town that was highly popular in the 50s and 60s. These resorts often offer modern apartment units that have sea or amenity views. Indoor, outdoor, and water sports, rejuvenation and relaxation services, and social areas became a staple in these resorts. The prices have seen a positive correction, and appreciation in Long Beach has been very strong.

The second location that emerged was the North Coast of the island. This location is characterized by its more private and quiet living spaces surrounded by nature. The North Coast is a hidden oasis that has breathtaking natural landscapes and captivating topography. From its mesmerizing beaches to its majestic mountains, the North Coast offers a unique blend of natural beauty that reflects the Med’s authentic charm. To preserve the inherent beauty and ensure responsible development while maintaining the region’s nature, various building restrictions are put in place in this zone. This also ensured a sustainable population growth in the area. With a shortage of coastline plots on this small island, opportunities to live or invest in this idyllic location are becoming increasingly rare nowadays.

2024

Hot Markets: Gaziveren, West Coast

Outlook On The Upcoming Market Trends

The west coast has been an agricultural location for decades, most famous for its citrus production. In previous centuries, this was a busy location for copper mining, that has been deserted for decades. The tourism and residential settlement here has been minimal apart from the local population of the villages that relied on agriculture and farming. In the 90s an international university was established, which provided an additional source of cash flow into the town with the international students increasing in numbers since the early 2000s.

Gaziveren, is a coastline in the West Coast that was mostly bare. In the year 2008, an international investor who later became a key player in the property development industry started developing a resort-style living in this location. This location has a similar landscape to the Long Beach region in Iskele with a small exception that in Long Beach the resort-style developments are separated from the beach with the four-lane highway, but the West Coast resorts are situated right at the beach.

From 2008, until 2023 majority of this coastline belong to the earliest investor of this location, the pioneer developer in the region. In 2023, five other key developers from?Iskele and the Alanya purchased the adjacent plots to this developer, currently most of these are at an off-plan stage, soon to be developed at a rapid speed.

Lessons Learned Through The Generations of Cyprus Real Estate Investments

As significant investors engage in substantial transactions in Gaziveren, West Coast, this naturally picturesque coastal stretch is poised to transform into not just a popular destination but also an immensely lucrative opportunity for stakeholders. The long-term fate of our families’ generations of investments in locations with scarce availability of natural treasures has taught me that opportunities like this are best-taken advantage of at their earliest phase. This undervalued locale presents an opportune moment for investment, especially for those looking to initiate the development of a wealth-generating asset portfolio in the foreseeable future.

Invest with insight,

Soylem Coli

Local Expert

Date: 1 January 2024

Soylem Coli

Email: ?? [email protected]

Phone: ?? +90 533 864 1652

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