The promise of cheap holidays in the sun, coupled with the long-term investment potential, fueled an increase in property buying abroad, particularly in the 1990s. Today, however, a few factors have severely disrupted the market and many customers are turning to alternatives. As a result, the rental market abroad, and Cyprus in particular, has experienced a massive increase. In the current economic climate, renting abroad makes a lot of sense.
Two things in particular have devastated the property market in Northern Cyprus. Probably the most significant is the legal position regarding land ownership. Following the 1974 conflict, Cyprus was effectively split in two; the Turkish Cypriot population ends up in the north of the island and the Greek Cypriots in the south. The politics of this division are complex and the cause of longstanding tensions, but at the time, the then government of Northern Cyprus was left with a housing and land problem. He took steps to redistribute land previously owned by Greek Cypriots and pass it on to local residents. The current situation is confusing, but the upshot is that much of the property now on the market in Northern Cyprus may have some questions about its legal status. Recent cases, and one in particular, have been brought to international courts that may negatively affect the status of property in the north that is now in the hands of non-Cypriots.
Of course, not all land in Northern Cyprus is similarly affected, as it was originally owned by Turkish Cypriots and is therefore legally as safe as possible. However, the current situation has had a dramatic impact on property prices in general. In addition to the global economic crisis, costs in the Mediterranean region as a whole have also risen substantially in recent years. For anyone considering buying a villa in Northern Cyprus, this is a factor that is often ignored, but highly relevant. Whether you are considering a holiday villa in Cyprus or a place to live permanently, the daily costs of things like water and electricity have skyrocketed in the last decade and are now comparatively very high. Maintenance and repairs are more likely than in Northern European countries, as construction standards and methods can vary drastically. It is normal practice, certainly in Cyprus, for buildings to be built around a concrete frame, and this means that there is no wet course that would be standard in many regions. This does not cause problems in the summer, but in the cooler months and when it rains, redecoration and repairs are normal.
With all these things in mind, renting a villa in Cyprus seems like a very good proposition at the moment. Of course, there is no investment potential if you rent, but there is also no opportunity to lose money. More importantly, of course, if you’re looking for a vacation home, the day-to-day running costs of a property are almost always included in the rental price. There are no nasty surprises waiting to trip you up! Even if you are considering emigration or an extended stay, renting can make a lot of sense. Obviously, you should check your potential contract carefully, but while you’ll likely need to take responsibility for paying for services like electricity and water, all other costs will almost certainly be covered. Insurance, maintenance, and repairs can be expensive, but will almost always be the responsibility of the owner.
In terms of areas to look at, this will largely depend on your intended use. If you’re looking for a vacation rental villa, areas like Bellapais and Kyrenia are likely to be your first choices. Close to many restaurants and other facilities, these are ideal holiday locations in North Cyprus. For an extended stay, the time of year will be a factor. Some of the more remote villages and coastal areas can look surprisingly inviting in the hot summer sun, but in the midst of a cool and humid January, they can be somewhat less appealing. Walking a couple of miles to the shops and cafes is a lovely idea in the sun, but many smaller establishments remain closed in the winter season and the cost of having to travel everywhere for anything can soon add up. For extended stays in the cooler seasons, Kyrenia is probably the best option. There are many shops and restaurants and, with the exception of the purely tourist attractions, most remain open throughout the year.
A holiday in Northern Cyprus remains a memorable occasion and many are so enthralled by the country that the lure is strong enough to make it a permanent home. There is nothing wrong with thinking about buying a home here, but in the current situation, caution should be the key. Give yourself some time to make a decision and consider renting a villa as the first step. Keep your money under lock and key right now!