Everybody wants to know about the ideal time to buy a property in Cyprus. Buyers and property investors have become increasingly concerned about the real estate prices in Northern Cyprus. How would the real estate market behave in Northern Prices? Will the real estate prices in northern Cyprus rise? Is this the best time to buy a property in Northern Cyprus? Is real estate investment in Northern Cyprus a good option?
The real estate prices in Northern Cyprus have been volatile in recent years because of a number of reasons. However, some stability has been reached in recent times, and it seems like an ideal time to purchase properties in Northern Cyprus. Before we explain the reason behind the ideal timing, let us take a look at the general trend of real estate prices in Northern Cyprus.
Real Estate Decline in 2020 and 2021:
The real estate prices in Cyprus experienced a downward trend in 2020 and 2021. The reason behind the negative trend was the emergence of the Covid-19 pandemic. The crashing markets, the lack of opportunities and the lockdowns were the primary reasons behind the decline in the real estate market of Cyprus. People were laid-off from their jobs. Businesses had to shut down or limit their operations while the opportunities for work had reduced drastically. As a result of all these limitations and constraints, there was just not enough cash for people to invest in houses and properties. Due to limited cash and earnings, the Real Estate Market experienced a decline because of the limited buying power of buyers.
Declining Tourism in Northern Cyprus led to a declining Real Estate Market:
In addition to the declining economy, another major factor that led to the downfall and decline of the real estate market in Northern Cyprus was the ban on traveling. Northern Cyprus is primarily a tourist destination, with tourism generating huge sums of revenue for the population and driving a number of professions. In Covid lockdowns, tourists and visitors could not travel to Cyprus due to travel restrictions. As a result, the tourism sector declined sharply during times of covid-19. The whole tourism sector and its associated professions had crashed in the country. This meant that there was no money flowing into the country’s economy from external sources. As tourism-related professionals had no jobs during those times, a significant portion of the population had lost their jobs and sustenance.
Moreover, a number of people sold their properties as they needed money during the testing covid-19 times. They had no other choice but to sell their properties at lower prices. This led to a direct devaluation of their properties.
In addition to that, it is important to mention that a number of tourists and visitors invest in properties and houses in Cyprus. The primary reason behind their investments is that they find Cyprus a great holiday destination and choose to invest here for their own houses. Therefore, it is safe to say that a considerable portion of the real estate buyers in Northern Cyprus is visitors and tourists.
During lockdowns and restrictions, these tourist buyers and Real Estate investors exited the Real Estate market of Cyprus. This means that the number of buyers had reduced significantly, directly contributing to declining property prices in Cyprus.
All of this contributed to a decline in the real estate market of Northern Cyprus. This was the reason why the real estate prices kept on falling for most of 2020 and 2021.
Statistical Figures that show a similar trend:
In the first quarter of 2021, Real Estate prices fell by 5.8% in Northern Cyprus. On the other hand, the real estate prices in the rest of the European Union grew by 6.1%. The direct dependency on the tourism sector was obvious as the effects of Coronavirus lasted for much longer.
Resurgence in 2022 – The Real Estate Prices in Northern Cyprus are Rising:
Since the beginning of 2022, an upward trend has been observed in the prices of Real Estate in Northern Cyprus. The economy seems to have recovered from the declines of the past two years, and Real Estate prices have been on the rise this year.
Real Estate Prices Rise in the First Quarter of 2022:
In the first quarter of 2022, Real Estate prices in Cyprus rose by 1.1%. This was seen as a huge positive for the Real Estate Market and properties. This was the first time that Real Estate prices had increased in the past few years. For most of 2020 and 2021, the prices kept on declining. But the start of 2022 had put an end to the declines. The rise in the first quarter of 2022 showed where the real estate industry was headed.
The rise continued of the Real Estate Market in the 2nd and 3rd Quarters of 2022:
The rise in real estate and property prices in Northern Cyprus continued for the second and 3rd quarters of 2022.
In the second quarter of 2022, the prices rose by 4.7%, which was an encouraging figure in the recovery of real estate market. The upward shift led to a rise of 6.5% in the 3rd quarter of 2022. These statistics show that this is the best time to Invest in Houses and Properties in Northern Cyprus.
The prices are expected to continue rising as foreign investors are investing huge amounts of money in Northern Cyprus. House sales in Cyprus have been on the rise as investors from Russia, Ukraine, Germany, the UK, and Turkey have invested heavily in Northern Cyprus.
The war between Russia and Ukraine is another factor in the rising prices of houses and properties in Northern Cyprus. People are taking their money out of Russia and Ukraine and investing that in Northern Cyprus and other European states.
Moreover, the rates of houses and properties in Northern Cyprus are lower than the other European Nations. So, this certainly is the ideal time to invest.
If you are looking to buy a house or real estate property in Northern Cyprus, this is the ideal time for you to invest, as the market is booming.
