Above-Average Appreciation In A Mediterranean Haven

I first found out about Northern Cyprus from Lief Simon back in 2018. I’ll admit that I didn’t know much about this tiny territory in the eastern Mediterranean back then.

But Lief made a strong case for it, so I got up to speed quickly. It’s not every day that he identifies a new breakout market for global property investment.

All the evidence stacked up for Northern Cyprus’s investment potential, including:

• Desirable, high-quality property at super-low prices
• Leverage options, including pre-construction deals
• Diverse buying and selling pools, meaning more liquid markets and more reliable rental yield
• A healthy middle class, so more market activity for sales and rentals
• Cash flow and appreciation potential

On top of this, Northern Cyprus has strong tourism appeal, with warm year-round weather, clear blue waters, and over 400 miles of coastline.

The summer here is the longest in Europe, beginning in March and lasting until October, even November, with over 300 days of sunshine a year…

English is spoken well by locals, and the culture and history are rich. The food is light and fresh; fish and salad are served with every meal, and the coffee is strong and aromatic.

To top it off, life—and real estate—is as affordable as it gets in Europe. That was especially true at the time when Lief first recommended it to readers.

Back then, you could buy quality real estate for as little as $60,000 (or the equivalent, as property is priced in British pounds here). Those who acted on Lief’s recommendations and snapped up homes in Northern Cyprus have enjoyed strong rental returns, but more exciting is the sky-high appreciation (at least on paper) in such a short time span.

For example, those who bought studio apartments at Crystal Resort, a beach development with five-star amenities in the Iskele area on the east coast, have seen appreciation of over 116% on their units since 2021.

Similar stories of above-average appreciation have played out all along the east and north coasts, including with the unit Lief himself invested in…

These astronomical increases in value are hard to match anywhere in the world… but little Northern Cyprus continues to hold surprises. Another chance to profit is on the horizon.

Where Profit Potential Lies In Northern Cyprus Today

Northern Cyprus’s property investment potential is found along its coasts.

Beachfront or beachside real estate commands the highest value and demand because almost everyone wants to be near the sea… which makes perfect sense considering that the sparkling blue waters of the Mediterranean Sea are surrounding.

There are three stretches of coastline in the territory: the east coast, the north coast, and the west coast. There’s no south coast because this is where you find the territory’s border with the Republic of Cyprus.

Development along the coastlines has followed a predictable pattern, according to my contact on the ground…

Developers think decades into the future and buy up tracts of land in tomorrow’s areas of opportunity, locking in their purchases at the lowest possible values. They hold the land until the local building codes change in their favor and allow for residential development.

When the codes change to allow them to build higher structures, for instance, they start to develop the land for residential use, which eventually attracts commercial development (spurring an influx of shops, restaurants, malls, etc.).

A desirable community takes shape, which significantly increases the value of real estate in that area.

This is what my contact has seen play out in Northern Cyprus over the past 15 years, starting with the north coast…

The main anchors here are Kyrenia, which offers high-end hotels, shopping, and arts and culture, and the Karpaz Peninsula—the finger of land renowned for its beautiful, soft-sand beaches.

The building codes changed around 2015, and residential development took off, followed by commercial development. These areas are now known for their golf courses, vineyards, and premium real estate prices, which appreciated steeply and quickly. The price per square meter in Kyrenia is now 2,700 pounds ($3,540).

Next, it was the east coast and the Iskele region specifically, which followed the same pattern, starting around 2018. Real estate prices caught up with the north coast and now command almost the same price per square meter of 2,600 pounds ($3,410).

Though these areas still generate strong rental yields, they’re now considered mature markets in the context of Northern Cyprus. So where should you look next to make profits in Northern Cyprus?

If you weren’t among those investors who got in on Northern Cyprus early, here’s another opportunity…

Introducing The West Coast…

The west coast is one of the few undeveloped areas remaining in Northern Cyprus. Currently, it consists of beautiful beaches and undeveloped land, with a scattering of small residential complexes with few people relative to the north and east coasts.

Price per square meter in this region is currently at 1,447 pounds ($1,900). But forward-thinking developers (including the one we work with) have held land here since the early 2000s, waiting patiently for the building codes to change in their favor.

The codes finally changed last year, so the west coast is about to take off, and its outlook is incredibly exciting.

Residential and commercial development are coming and will include amenity-rich private communities (with pools, restaurants, spas, gyms, and more), five-star hotels, a mall, marinas, shops, restaurants, and much more…

The government is supporting this development by building a road to the capital, Nicosia, which will cut travel time to about 25 minutes. Nicosia is rich in historical sites and cultural experiences, including shopping, traditional markets, Turkish Cypriot cuisine, and nightlife.

In five years, the west coast is going to be unrecognizable, so now is the time for forward-thinking real estate investors to stake a claim. If the west coast follows the same pattern that the north and east coasts did, the potential for capital appreciation will be massive.

In fact, my contacts on the ground expect property values to double or even triple in a few years’ time. Check out this chart, which shows how price per square meter has changed in Kyrenia, Iskele, and the west coast over the years up until 2024.

Keep in mind that undeveloped coastline is scarce in Northern Cyprus, and the west coast has the last remaining stretch of it. Sharp appreciation of waterfront property is a recurring phenomenon, not just in this territory but across the world.

If you’re connected to the right developer on the ground, prices can be so low that making a purchase is a no-brainer… They can be so low that they almost match the prices that were available when Lief first recommended Northern Cyprus years ago.

But you need to act quickly to catch this rising tide. Mark your calendar for Sept. 11, when Lief will host a free webinar focusing on opportunity on Northern Cyprus’s west coast. You won’t want to miss this one.

To smooth travels and successful property buys,

Sophia Titley

Editor, Overseas Property Alert