North Cyprus Investments - 3 March 2008
North Cyprus presents outstanding investment opportunities for individual, corporate and institutional investors. While returns on individual residential properties are attractive, investments in projects will yield outstanding returns within a 5 year time scale.
Investment Opportunities - 10 March 2008
Beach Road, Esentepe
Why invest in North Cyprus today ?
To date, investors in North Cyprus have needed to spend significant time undertaking their own assessments of the market, the likely financial returns, and the political risks. Wellington Estates provide a range of services and opportunities for international investors who are seeking a reliable and established local partner.
There are several factors which make North Cyprus real estate an attractive investment opportunity -
1. North Cyprus is an intrinsically attractive location. The overdevelopment which has ruined many Mediterranean islands has not taken place in North Cyprus. While South Cyprus has seen an explosion in development in recent years, the North remains an idyllic location with many wilderness and forested areas. It also has a rich variety of sandy beaches, many of which are deserted even in the high tourist season.
2. North Cyprus is an autonomous region, referred to as the Turkish Republic of North Cyprus (TRNC). It is outside of the control and jurisdiction of the (Greek) Republic of Cyprus and is therefore not part of the European Union. The European Savings Directive does not extend to North Cyprus and therefore investors enjoy genuine levels of privacy and confidentially. The major currency for business purpose is the Pound Sterling, although Euros and US dollars are popular. Deposit accounts in all major currencies can be opened with banks operating in the TRNC.
3. North Cyprus has stable and democratic government institutions together with a legal system which is modelled on the UK. Although government agencies tend to exhibit bureacracy and inertia, they are not corrupt. In order to make progress with government agencies, it is essential for foreign investors to have a local representative who can speak Turkish. However, this representative does not need to have any power of attorney or be a stakeholder for the investor. Investors can, at all times, retain complete control of their financial operations in North Cyprus.
4. The (Greek) Republic of Cyprus has systematically thwarted the efforts and aspirations of North Cyprus for international recognition. This would permit international flights to operate to and from North Cyprus without the need to touch down in Turkey en route. It would also allow North Cyprus goods free access to EU and Middle East export markets. The election of Dimitris Christofias as President of the Republic of Cyprus in February 2008 should hasten this recognition as he is committed to normalising relations between North and South Cyprus.
The failure of the Annan Plan proposal for the re-unification of Cyprus heas meant that land and proprty prices in the North have not equalized with the South. The following figures show comparative price movements up to 2006 -
|Building Land||South Cyprus||North Cyprus||North as a % of South||UK|
|Price per square metre||Price in Sterling||Price in Sterling||Price in Sterling|
As an example, the Wellington Nebula 3 bedroom bungalow with a covered build area of 120 square metres stands on some 800 square metres of land. At £31.70 per square metre, the expected land cost would be £25,360
The build cost would be 120 square metres x £573 = £68,760. The expected total cost of the construction and land is £94,120. If you look at our prices, then it should be noted that we are marketing the Nebula at £82,491.
Comparative prices for a similar property in the South would be 800 x £85.40 = £68,320 for the land, plus 120 x £1,248 = £149,760 for the construction, giving a total of £218,080.
Comparative prices for a similar property in the UK would be 800 x £163 = £130,400 for the land, plus 120 x £1,685 = £269,600 for the construction, giving a total of £400,000
Wellington Estates have several projects for which we are inviting the participation of investors. They comprise both commercial and residential property.
Investors, please click to view details of Golf Bay or a commercial deveopment on the Beach Road, Esentepe