What options are available for real estate investment in North Cyprus?
The sorts of investment income, price rise dynamics, types of rent, and rental rates for different types of facilities in the local market are all important factors for an investor to consider before making a final decision on which real estate to invest in. The most successful method is to buy a property when it is still at the zero stage or the initial level of construction especially when the developer is selling it for the lowest price.
The property is resold at the market price of completed projects when the construction is done which usually lasts between 1.5 and 2 years after the commencement of the construction. Today, prices are rising at a rate of 10% per year, implying a 15 to 20% rise in the cost of the property by the completion of construction. After completion, successful projects have a 50 to 60% rise in value above the purchase price.
Long-term property rentals are possible in large cities, where the majority of business activity is carried out and many university campuses are situated. Cities like Famagusta, Girne (Kyrenia), and Nicosia are among a few examples. Long-term rents are advantageous for some important reasons. First, the rental contract is signed for a year, the tenant pays a 12 month advance payment, and the investor receives rental income in British Pound Sterling (GBP) or Euro (EUR) currencies.
It should be noted that customers are most likely willing to pay a minimum of 20% extra for rent in new projects. The annual rental income on such projects might be as high as 7 to 8 percent. The average return on investment is between 13 and 16 years. For the sake of comparison, the average return on investment in real estate in the global best practice is between 20 and 25 years.
Real Estate investment in North Cyprus – New and Frequent Projects
During the peak of the tourist season, which spans from May until the end of October, a short-term rental option is available and valid for up to 6 months. Properties located in areas that are close to the sea generate higher income for this form of rent than the others. Short-term rental prices are fixed per day, and in some areas, a minimum rental duration (usually a week) is required.
With competent real estate management, the income from a short-term rental may be compared to, and even exceed, the income from a long-term rent. The annual income on the projects for short-term rent is from 8% to 10%. The projects’ return on investment might range from 10 to 13 years (in the case of buying an apartment at the zero stage of the construction).
Some of the developers sign rent-guaranteed contracts. The obvious benefits of such collaboration are that the investor surrenders his property to the company’s management and does not have to deal with any concerns related to the property’s maintenance or renting it to customers. However, it is important to remember that the more services a company provides, the higher its commission will be.
The assured rental income averages 4 to 5 percent each year. In North Cyprus, some companies sign a contract guaranteeing 6% of annual net profits (after having paid all the taxes and commissions). You may also self-rent your property using their corporate online services. In this instance, annual profitability may rise between 10% and 12%. Excellent investment in North Cyprus
When choosing a property for investment purposes, an investor should clearly define the investment goals and make the best decision possible based on the investment budget. investment in North Cyprus is very advantageous and investment in North Cyprus always yields profits.
By clicking here, you can read the advantages of investing in the most popular region of Iskele.