North Cyprus

Taking up the Northern third of this picturesque Island, Turkish Cypriot North Cyprus is one of the last unspoilt areas of the Mediterranean. This is a new and exciting destination for investors and second home owners alike. From the Five Finger Mountains, to the stunning sandy beaches that are the most beautiful on the island, this is truly a location to be seriously considered.

Recent history

The most important thing with North Cyprus is to understand the reason why this country has not seen the levels of development that Greek Cypriot South Cyprus has.

North and South Cyprus split from one another after a conflict in which members of the Greek military tried to join the island to mainland Greece. The conflict ended when the Turkish military intervened and set up the Northern third of the island for the Turkish Cypriot population Because of the intervention of the Turkish military, the North was not recognized by the international community.

The isolation was supposed to come to an end with the introduction of the Annan plan (Kofi Annan) which was to see both North and South joined together in partnership and enter the EU as one island. The Turkish Cypriots voted yes to the plan but the Greek Cypriots voted no. The South then entered the EU by default and the North was left out in despite voting for the plan. Because of this, the European community announced its intention to bring financial aid to the north and work to end the isolation. This process is already taking place.

Is it safe to buy property in North Cyprus

There has been much confusion over the validity of title deeds in the North and this is something that needs to be addressed. It is safe to buy property as long as it has the correct title deeds.

There are four main types of title deeds (five if you count leasehold):

• Turkish Title Deed: This is land that was in Turkish Cypriot ownership pre 1974. This land is internationally recognized and safe to purchase.
• Pre 1974 Foreign ownership: This is land or property that was owned by a foreigner (English, German etc) prior to 1974. This again is internationally recognized and safe to purchase.
• TRNC Freehold: This is exchange land where a Turkish Cypriot has lost land in the South. The TRNC Government has assessed the value of the refugee's lost assets in the south on a point's basis. With the points granted the refugees have then taken an abandoned Greek Cypriot house or land valued at the sum of the points awarded. This was done in compensation for the lost properties on the south. The Turkish Cypriot then signed over his property in the south to the TRNC government to be held by them pending a negotiated resolution and settlement between the north and south Governments. Under the Annan Plan for the reunification of Cyprus, it is proposed that current owners of exchange land have their ownership declared internationally binding.
• Land allocated for military service: This land was given to serviceman or their widows after the troubles. This land is considered less safe.

Property and Investment

• Location within location
• Angles of Investment
• Sea, Market & Culture

Prices are increasing, but the astute investor now has the advantage of making firm purchases based on guaranteed data.

The EU has pledged Euros 259 million in aid for Northern Cyprus, to fund improving the country's infrastructure, enabling greater foreign investment, and preparing the country for the forecast growth in tourism.

What do the next five years hold for this country?

This is an important question as we need to be able to make a financial decision based on the facts available to us.

North Cyprus is slowly emerging. You will find that prices can be up to one third lower that in the South

A new airport (Ercan) opened in May 2004, which will soon enable planes to fly directly to Northern Cyprus for the first time since 1974. This will conservatively lift the annual tourist numbers from 433,000 to 2 million people per year over the next five years. This is still below the current level of 2.3 million people visiting Southern Cyprus per year.