Why should one invest in new developments in Northern Cyprus?

Investing in real estate in Northern Cyprus

In recent years, there has been a significant increase in interest from buyers in investing in real estate in Northern Cyprus. Everyone looking to purchase new housing is starting to pay attention to the criteria that make such a deal attractive and profitable. Experts emphasize that real estate in this region is not only a comfortable place to live but also a promising investment.

Infrastructure development

One of the key features is the continuous development of infrastructure by construction companies, even on completed projects. This is extremely important, as a high standard of service and accessible amenities attract tourists and create comfortable conditions for permanent living. Representatives of the "Afik Group" state that their main goal is not just to build buildings, but to create a diverse and comfortable living environment. They note:“Without infrastructure development, the number of visitors may decrease.”

New opportunities for leisure and living

Thus, developers are actively offering new opportunities for recreation and living, striving to meet the demands of clients. They have included elements such as:

• pools with seawater;
• playgrounds for children.

These amenities make living more enjoyable and unforgettable. Residents often prefer not to leave the confines of their residential complexes, as everything necessary for a comfortable life can be found there.

Practical aspects of purchasing

Additionally, it is worth noting that the area of terraces in new buildings is not included in the total area of the apartment. This allows buyers to focus more on the practical use of space and serves as a significant argument in favor of purchasing property in this region.

Ready-to-move-in apartments with furniture

The popularity of buying apartments from developers with already installed furniture and appliances is also growing. This solution helps avoid additional costs for furnishing and significantly saves time. With ready-made solutions, one can move in instantly and enjoy life on this picturesque island.

Rental income

Another important point is that apartments start generating income as soon as they are put into operation. Many investors choose a rental strategy, earning profits from the moment of purchase. This allows for effective management of funds and even partially covering mortgage expenses.

Rental yield

The rental yield in this area is also quite high. For example, owners of new buildings are able to meet their financial obligations through installment payments by renting out their properties and receiving a stable income. This gives investors the opportunity not only to wait for price increases but also to derive tangible profits from their real estate.

Rise in real estate prices

It is worth noting that the cost of housing in Northern Cyprus has been rapidly increasing over time. On average, the increase in real estate prices is about10-12%per year, which makes such investments even more attractive to potential buyers.

Conditions for purchasing real estate

When it comes to buying real estate, experts emphasize the useful nuances of transactions. For example,“two-room apartment” in Urucheyor an apartment in a new building on the coast with the necessary furniture and appliances are considered worthy options in a competitive environment. In prestigious residential complexes, such asCaesar ResortYou can purchase apartments in installments for a price of around40 thousand euroswhich is quite an enticing offer.

Market trends

Representatives from the Israeli construction company "Afik Group" and the investment company "Status Estate" share their views on the developing real estate market, noting that buyer interest in housing in Northern Cyprus continues to grow due to its unique conditions and picturesque nature. Investing in new developments here is becoming increasingly profitable, and the variety of offerings significantly strengthens this trend. Those looking to purchase new housing can expect long-term prospects and confidence in their investments, as the real estate market continues to actively develop.

Development of infrastructure in residential complexes

In modern multifunctional residential complexes, the development of infrastructure continues even after the final handover of the buildings. We are actively adding new elements such as water parks, restaurants, sports grounds, entertainment areas for children, as well as medical assistance centers and shops. All provided infrastructure is free for the residents of the complex; however, entry is strictly prohibited for outsiders.

Caesar Resort: one of the most popular complexes

One of the most popular residential complexes in Northern Cyprus isCaesar ResortThis is a large residential area offering its residents various amenities, including:

• water park
• restaurants
• saunas
• sports grounds

Here, apartments of various formats are available, ranging from compact studios to luxurious penthouses, at different stages of construction. The sizes of the studios are impressive: they range from 37 to 56 square meters, plus each one is equipped with a terrace of about 9 square meters. It's important to remember that the area of the terrace is not included in the total living space, which often raises questions among buyers.

High demand for housing

Interest in real estate in this complex remains high. In just four days after the launch of sales for the new block with 90 apartments, 30% of the units were sold. This block is scheduled for completion in September 2021. If we look at the apartments that are at later stages of construction, there are only three apartments left in the new buildings that will be ready by the end of this year and the beginning of next year. The minimum price for apartments in Caesar Resort starts at€40,000For this amount, you can buy a studio apartment of 52 square meters with a terrace and high-quality finishes. A typical one-bedroom apartment (consisting of a hallway and a kitchen-living room) with an area of about 60 square meters and a terrace ranging from 8 to 15 square meters will cost approximately€61,000.

Apartments with full furnishings

For those buyers who value convenience and comfort, there are apartments from the developer that come fully furnished with furniture, household appliances, and necessary accessories. The standard finishing package includes:

• solid color painting of the walls
• tiles and laminate on the floor
• kitchen with complete plumbing (including sink, boiler, and shower)
• tiles on the balcony with installed railings

Buying a "turnkey" apartment

Additionally, for those looking to avoid the hassle of the purchasing process, there is an option to buy a "turnkey" apartment. This offer is especially relevant for foreign buyers and includes everything necessary—from furniture and appliances to dishes and bedding. This package includes:

• air conditioner
• television
• decorative elements
• kitchen utensils

This allows the newcomer to quickly settle into their new home. The interior design is developed by qualified designers, taking into account the client's wishes, so that the new owner can move in right away and enjoy life without unnecessary hassle. The prices for such packages are quite reasonable and vary depending on the size of the apartment. For example, the price difference between a standard one-bedroom apartment with finishing and a "turnkey" option can be around€6,000.

Advantages of buying apartments in Northern Cyprus

One of the key advantages of purchasing "turnkey" apartments in Northern Cyprus is the ability to quickly rent out the property.

Introduction

As soon as the first payment is received by the construction company, the process of registering the purchased apartment in the name of the new owner can begin. The terms of the installment plan vary depending on the stage of construction and the deadlines for the project's completion. Clients often offer installment plans that can last from two to three years.

Installment terms

For example, if the completion of construction is expected in 2021, an interest-free installment plan for three years may be offered. This means that in two years you will be able to receive the keys to your new home, and for another year, you will be paying for the apartment while renting it out. The rental income can help reduce the financial burden of the installment payments.

Rise in real estate prices

Every year, apartment prices increase by 10-12%, and according to expert Evgeny Dremov, real estate in Cyprus is attracting significant investment interest. The portfolio of "Afik Group" grows by 10-12% annually. Considering the high costs of land and the shortage of quality plots, it can be confidently assumed that the price growth will continue.

Ways to generate profit from real estate

There are many well-known ways to profit from real estate investments. The specific approach depends on how quickly you want to start earning income and which management method suits you best.

• Some investors are willing to invest $50,000 in hopes of stable income over the next 10-20 years.
• For such individuals, the best solution is to rent real estate with a yield ranging from 7 to 10% per year.
• However, with the right desire and effort, it is possible to achieve even a 15% return, although this is not always easy to accomplish and requires significant effort.

Investments in construction

If your priority is quick profit, you should consider investing in construction at early stages, when prices are most reasonable, and then sell the apartment upon completion (which usually takes no more than two years) with a markup of 20-25%. This scheme is common and often carried out through a chain of investment deals: one investor receives their profit and transfers the funds to the next purchase.

However, it is important to keep in mind one significant issue with this approach — the rise in prices. Over the past two years, the cost of real estate in Cyprus has been increasing, making it difficult to repurchase an apartment at the old price during the construction phase.

Factors affecting prices

The formation of real estate prices in Cyprus largely depends on land prices, which are also increasing. Changes in infrastructure also affect the value of new developments. The photo shows Yevgeny Dremov.

Tax obligations

It is important to consider a number of key nuances that need to be taken into account when purchasing real estate in Cyprus. First and foremost, this concerns the tax base. When buying property in NorthernCyprus, the new owner is burdened with taxes, including VAT, which amounts to approximately 1,800. Therefore, it is essential to familiarize yourself in advance with all possible tax obligations and include them in the overall cost of the purchase.

Conclusion

Considering all these factors, it can be concluded that investing in real estate in Cyprus has the potential for significant returns, but requires careful analysis and preparation. Successful investments can become the foundation of financial stability and contribute to an improved quality of life in the future.

Conclusion

In conclusion, it can be stated that investing in real estate in Northern Cyprus opens up wide prospects for buyers. This is not only a great opportunity to secure comfortable accommodation for vacations but also a profitable way to generate stable rental income. We have examined numerous factors that highlight the significance of this topic: from the development of infrastructure in radically new projects to exclusive offers for the sale of ready-to-move-in apartments with complete finishing and everything necessary, including furniture and appliances.

While studying the market, I am continuously convinced that this region offers a unique combination of quality of life and profitable financial investments. For example, examples like the complex...Caesar ResortWith its wide range of available apartments, it demonstrates a growing demand and numerous options for buyers, which is an important indicator of market stability. Each new project not only offers apartments but also creates a community that includes amenities catering to the needs of modern individuals.

When making investment decisions, it's important to consider all aspects, including market specifics, potential risks, and benefits. Choosing an apartment in Northern Cyprus today could be the key to a successful business in the future. I hope my article has helped you better understand why it's worth paying attention to this market segment.

Invest wiselyAnd remember that housing, like investments, should provide not only material but also emotional comfort.