by Northern Cyprus Property 
North Cyprus Real Estate Market Outlook for 2025 and Beyond
The real estate market in North Cyprus has experienced significant changes over the past few years, particularly following the COVID-19 pandemic. In the years after the pandemic, foreign buyers started purchasing large numbers of homes and apartments, sparking a period of booming property sales. However, the market has taken a dramatic shift due to the introduction of new laws aimed at controlling foreign property purchases. As we move towards 2025, these changes have caused the market to slow down, and uncertainty looms over the future of property sales in North Cyprus. There are currently three ongoing lawsuits expected to reach the high court concerning these new regulations.
While foreign buyers have been a major topic of conversation in the real estate sector due to their influence on property prices, the root issue lies in the limited supply of available land and the constraints on development. Simply put, the laws of supply and demand are dictating the market. When supply is limited relative to demand, property prices inevitably rise.
The Role of Government and Land Availability
For North Cyprus to address the rising demand, the government would need to significantly increase the supply of land. One potential solution is to create new land, but this is not easy. Creating new land is primarily feasible through reclamation projects, such as filling in parts of the sea. However, increasing the zoning capacity on existing land while maintaining environmental standards is another way to add value to land without drastically impacting the environment.
In an effort to curb the inflow of foreign capital, the government has raised taxes and implemented quotas in certain regions to limit foreign property ownership. While this might reduce demand from abroad, it also risks discouraging investment in the region. The government’s approach to raising taxes from 8% to 17.5% and demanding that foreign buyers pay taxes despite not yet receiving approval for property purchases has resulted in frustration. Many investors who have already paid taxes are now waiting for approval from the government, and some have been waiting for years.
Unfortunately, the recent changes in legislation, which were enacted without consulting real estate experts, have only exacerbated the situation. These laws, many of which contradict international legal norms, are creating a perception of North Cyprus as a “pirate” state, potentially causing a loss of trust in the market for years to come. The addition of a half-million-euro fine for foreign buyers further damages the country’s image, and this could lead to a loss of investor confidence for the next decade.
The Impact on Property Sales
As a result of these legislative changes, property sales have been significantly impacted. Many new projects have been halted, and there has been a notable decrease in the number of available homes for sale in North Cyprus. Behind the scenes, some construction companies are struggling to pay salaries and have begun laying off staff. The question now arises: will property prices fall in the current climate?
Based on my 20 years of experience in the industry, I do not anticipate a significant decrease in prices for new properties over the next 12 months. However, there may be opportunities to purchase homes at discounted prices from individual sellers who need to sell quickly. Data from 101 Evler, a well-known property portal in North Cyprus, shows that in the last three months, property prices have increased by an average of 3%. However, this increase can be attributed to the introduction of several new properties into the market, with some projects being priced above their actual market value.
For the most part, real estate prices in North Cyprus are continuing to rise, albeit at a slower pace than in previous years. Below are some key statistics from the last quarter, which show the average price increases in different regions of the country:
Price Trends in Key Areas of North Cyprus
Nicosia (Lefkoşa):
- Nicosia Apartments for Sale: 8.06% increase, with an average price of £904.41 per m²
- Nicosia Apartments for Rent: 5.43% increase, with an average price of £5.28 per m²
- Nicosia Villas for Sale: 1.91% increase, with an average price of £1226.98 per m²
Girne (Kyrenia):
- Girne Apartments for Sale: 2.75% increase, with an average price of £1582.64 per m²
- Girne Apartments for Rent: 5.83% increase, with an average price of £8.29 per m²
- Girne Villas for Sale: 1.66% increase, with an average price of £2029.39 per m²
Famagusta (Gazimağusa):
- Famagusta Apartments for Sale: 0.86% decrease, with an average price of £1084.44 per m²
- Famagusta Apartments for Rent: 2.33% decrease, with an average price of £5.35 per m²
- Famagusta Villas for Sale: 0.4% increase, with an average price of £1565.14 per m²
Iskele:
- Iskele Apartments for Sale: 2.95% decrease, with an average price of £1801.85 per m²
- Iskele Villas for Sale
Market Outlook for 2025
Despite some fluctuation in property prices across various regions of North Cyprus, the overall trend is still one of growth, particularly in villa sales. While the demand for property remains high, the lack of available supply and restrictions on foreign investment are making it more difficult for people to secure homes.
One thing is clear: the North Cyprus real estate market is experiencing a period of uncertainty, and the future of property sales will largely depend on how the government chooses to navigate these challenges. The market may see further legislative changes, which could either stabilize or further disrupt the market. The outlook for 2025 suggests that the overall market will remain active, but the rate of price increases may slow down.
What Buyers Can Expect
Buyers looking for properties in North Cyprus, particularly villas for sale, can expect some challenges in the short term, especially if they are looking to purchase new developments. Existing properties may be priced higher, but there could be opportunities for bargains in the resale market, particularly for those willing to wait for sellers in urgent need of a quick sale.
As for foreign investors, while there is still potential for profit in North Cyprus, the new laws and taxes may make it more difficult to navigate the process of purchasing property. It is essential for international buyers to consult with legal and real estate professionals to ensure they understand the regulatory landscape before making any investment decisions.
The North Cyprus property market faces a period of uncertainty in 2025 and beyond. While property prices have generally increased, the introduction of new laws and regulations designed to control foreign investment has created significant challenges for both investors and local developers. For those interested in purchasing villas for sale in North Cyprus, the market remains active but will require careful navigation to ensure successful investments.
For more information on property sales and the legal aspects of buying property in North Cyprus, you can consult with real estate professionals and legal experts in the region.
Ozyar Turgut
Real Estate Law Consultant
https://ozyarturgut.com/
