In early 2024, Northern Cyprus Property Market is experiencing a significant 70% decline in its property market activity compared to previous years, signaling a notable slowdown. Despite some positive momentum at the start of the year, particularly in January, with a brief boost in home valuations and inquiries, the overall buyer interest has dropped sharply. Many potential homeowners have delayed their purchasing decisions, mainly due to new tax regulations and ongoing affordability issues, impacting the broader property market in Northern Cyprus.
The number of properties listed for sale remains lower than expected. While there are still inquiries from prospective buyers, these have decreased substantially by 70% compared to the same time last year. This drop has created uncertainty within the market, as fewer properties are being bought and sold, and the general market atmosphere feels more cautious.
North Cyprus property expert, Cenap Turgut, emphasizes that while there are still motivated buyers actively seeking homes, the majority of prospective homebuyers in Northern Cyprus are now taking a more conservative approach. Factors such as rising interest rates, new tax policies, and a less favorable economic environment have led to this more cautious attitude among buyers. Although the market is seeing a downturn, there are variations depending on the buyer demographic.
The once-thriving Russian and Iranian segments of the Northern Cyprus property market have noticeably slowed down in 2024. Economic and political challenges within these regions may have contributed to the reduced interest. However, despite this slowdown, there are still positive signs from other international markets. The German and English buyer segments remain active, showing sustained interest in Northern Cyprus properties, even as other parts of the market weaken. These groups are drawn to the attractive investment opportunities and lifestyle benefits that Northern Cyprus continues to offer.
Additionally, there has been a notable rise in Turkish buyers entering the Northern Cyprus property market. This increase is helping to stabilize certain areas of the market, as more Turkish citizens look to purchase homes or investment properties in the region. Their activity is providing some relief in what would otherwise be a much more challenging market environment.
When it comes to property prices, the market remains relatively stable in Northern Cyprus, even with the decline in overall activity. Average prices for different property types offer insight into what potential buyers can expect. A one-bedroom apartment (1+1) is typically priced around £70,000 GBP, while a two-bedroom apartment (2+1) averages £110,000 GBP. Villas, which attract a more affluent segment of the market, are priced from £320,000 GBP and up, depending on the location and amenities.
These prices, while appealing compared to other Mediterranean regions, reflect a property market that is still accessible for many international buyers, despite the slowdown. However, with fewer transactions happening overall, sellers may need to adjust their expectations and pricing strategies to align with the current market conditions.
Cenap Turgut advises potential sellers to be realistic about pricing their properties in 2024, as buyers are now more price-sensitive due to economic constraints. The rise in Turkish buyers is a positive sign, but the broader Northern Cyprus property market remains in a period of adjustment. Sellers who price their properties competitively are more likely to attract interest in what is expected to be a challenging year for real estate.
In conclusion, while the Northern Cyprus property market is currently experiencing a 70% decline in activity, there are still areas of opportunity for both buyers and sellers. The rise of Turkish buyers, coupled with continued interest from the German and English markets, provides some optimism. However, the market remains sensitive, and both buyers and sellers will need to navigate it carefully as the year unfolds.
