by Northern Cyprus Property 
North Cyprus Property Market and Prices
The North Cyprus property market in 2025 and beyond is a subject of increasing attention, especially after the substantial foreign interest triggered by the COVID-19 pandemic. However, as of 2024, a major shift has occurred due to newly implemented laws that are severely impacting foreign buyers. These regulations have nearly brought the market to a halt. Currently, there are three legal cases related to these laws that are expected to go to the Supreme Court soon. Despite the apparent rise in property prices, which many attribute to foreign buyers, the real issue lies in the insufficient housing supply and limited land development opportunities in the region.
The economy doesn’t need a complete overhaul, as the forces of supply and demand ultimately determine the market. When supply is lower than demand, prices inevitably rise. In the case of North Cyprus, the government should have focused on increasing the supply of available properties to meet the growing demand, particularly from foreign buyers. The obvious solution would be to develop more land, but this remains a challenge as there is limited land available unless large-scale land reclamation from the sea is considered.
However, there is an alternative. By increasing the zoning allowances for the existing limited land, without compromising environmental considerations, the government could create more affordable plots. This would be a way to boost the supply of property and prevent the market from becoming overheated due to the lack of available land.
The issue of foreign buyers and their impact on the market is also complex. One approach to slowing the influx of foreign capital would be raising taxes or imposing other financial disincentives. However, simply raising taxes is unlikely to solve the problem. Another solution might have been to restrict foreign property purchases to specific zones or introduce quotas in certain regions. While this would have limited the impact of foreign buyers on the market, the government has instead implemented measures that have harmed the overall economy and investor confidence.
The current government’s approach has significantly disrupted the market. The new laws, which include raising property taxes from 8% to 17.5%, are damaging for both foreign and local investors. Additionally, those who had already signed contracts for property purchases and paid taxes, but who have yet to receive the necessary permits due to the government’s delays in issuing foreign buyer permits, are now facing further financial burdens. These investors, many of whom have been waiting for 2-3 years, are being asked to pay additional taxes without receiving the properties they legally purchased. This situation has caused frustration and disillusionment among investors, and for many, it marks the breaking point. The lack of consultation with real estate experts or adherence to international law in creating these laws is a mistake that only seems to happen in regions like North Cyprus.
Another controversial move by the government has been the introduction of a fine for foreign investors, amounting to half a million euros. This decision has given North Cyprus a reputation similar to that of a rogue state in the eyes of international investors. This move will likely cost the region its reputation for at least the next decade, causing a long-term loss of investor confidence.
Currently, looking at the number of properties for sale in North Cyprus, we observe a significant decrease in new projects, with some even being halted. Behind the scenes, we hear that many developers are struggling to pay employee salaries, and several companies have started to lay off staff. This is a clear sign that the property market is facing difficulties due to these new restrictions.
So, the big question is: Will property prices decrease in the current market conditions? Based on my 20 years of experience, I do not expect any major drops in the prices of new projects, at least for the next 12 months. However, there could be some bargain properties available in the market as individual sellers, who need to sell quickly, might offer their properties at discounted prices. According to the latest figures from 101 Evler, there has been an average increase of about 3% in property prices over the last three months, although this is skewed by the inclusion of newly added properties that are priced above market value. Despite this, there is still a slight sense of optimism because these new properties are often sold for higher prices than their market value, which signals that there are some buyers willing to pay more.
For a more detailed perspective, here are the average Property prices for property sales in North Cyprus:
North Cyprus Property Prices
**Properties for sale in Lefkoşa:**
– **For Sale Apartments in Nicosia:** 8.06% increase, £904.41 per square meter
– **For Rent Apartments:** 5.43% increase, £5.28 per square meter
– **For Sale Villas:** 1.91% increase, £1226.98 per square meter
**Properties for sale in Girne:**
– **For Sale Apartments in Kyrenia:** 2.75% increase, £1582.64 per square meter
– **For Rent Apartments:** 5.83% increase, £8.29 per square meter
– **For Sale Villas in Kyrenia:** 1.66% increase, £2029.39 per square meter
**Properties for sale in Gazimağusa:**
– **For Sale Apartments:** 0.86% decrease, £1084.44 per square meter
– **For Rent Apartments:** 2.33% decrease, £5.35 per square meter
– **For Sale Villas:** 0.4% increase, £1565.14 per square meter
**Properties for sale in İskele:**
– **For Sale Apartments:** 2.95% decrease, £1801.85 per square meter
These figures show that while there is some fluctuation in property prices in certain areas, the overall trend in North Cyprus is one of rising property values. This suggests that despite the challenges, the market remains relatively strong, particularly in areas like Lefkoşa, Girne, and Gazimağusa.
In conclusion, the future of the North Cyprus property market remains uncertain. While recent legal changes have had a negative impact on foreign investment, there is still potential for growth, especially in the long term. The government must focus on increasing the supply of land and properties, as well as ensuring that the regulatory environment supports sustainable growth. Only then can the market truly thrive and regain the trust of both foreign and local investors.
