Everybody complains about one thing recently: “The market is stagnant”
In fact, we all know arguments behind that statement. There are 3 basic reasons. You’ll find details and the actions of investors in our analysis.
Kıbrıs Emlak Merkezi Special Investor Analysis
-The fluctuation of the exchange rate and rapid depreciation of Turkish Lira
-High interest rates of mortgage loans
-Investments put on hold due to the pandemic
These are 3 main reasons of the stagnation but are all countries affected by them equally? Which are not? This remains to be the main question.
The first two reasons are of particular concern to local and Turkish investors naturally. For the foreign investor it’s the opposite. The depreciation of the TL could be considered as an advantage with regards to living expenses.
All kinds of investments have been put on hold during the pandemic but is an improvement of the situation to be expected? Certainly.
With regards to the stagnation of the Northern Cyprus real estate market, there is an interesting observation. In fact, luxury properties are being purchased; it’s the middle to low budget properties that are stockpiled. This phenomenon will be the subject of another analysis soon.
We would like to take a closer look into the actions of the foreign investor for now.
Foreign investors are not affected by the depreciation of the TL against hard currencies or by mortgage loans with 25% interest rate as local or Turkish buyers. Therefore, we can neglect the first two reasons stated above when analyzing foreign buyers. The remaining 3rd reason, being the pandemic, may have put property acquisitions on hold for a while but after more than 18 months into it, the initial shock has been defeated by most. The world is getting accustomed to live with the virus as a plain reality of life. We all know that money never stops to flow and the good news is that investors are coming back to the island gradually.
Who is actually investing in North Cyprus apart from locals and Turkish investors, categorized as foreign investors?
What do they investigate about?
What kind of properties are they looking for and where?
As Kibris Emlak Merkezi we are holding the pulse of the construction and real estate industry in North Cyprus. We are happy to share an in depth analysis in our article.
The easing of entry ban for Northern Cyprus in June was much anticipated by many who were forced to wait for travelling. It is now possible to enter the island without quarantine provided you obtained double vaccination and negative PCR tests before the flight and upon arrival.
Has the easing of restrictions contributed to the liveliness of the real estate sector? Perhaps not to the extend of the high expectations in the industry, but nevertheless there is certainly a movement in the right direction.
According to our research, investors who have been busy investigating investment opportunities online during lock down periods gradually come to the island to buy the property they have selected online.
Some of them buy to relocate to North Cyprus, others buy as an investment to settle down at a later point. Holiday homes are trending amongst those wanting to spend longer periods of time on the island followed by buyers for speculative investment reasons. All of them were waiting for the easing of restrictions to come and are keeping real estate agencies busy nowadays.
Which countries are at the forefront researching North Cyprus for investment among the foreign investors?
To answer that question, we collected data across Google and Yandex search engines as well as our own Kibris Emlak Merkezi portal.
The ranking of countries researching North Cyprus is as follows:
As shown in the chart there is a significant increase at the Swiss and German market researching North Cyprus followed by Azerbaijan, Russia and the UAE.
What do they focus on when researching for investments?
Here we have to split the data into researches done in English and Russian languages.
Results of searches in English and Russian differ from each other. “Property for Sale North Cyprus” is ranking number one followed by locations of Kyrenia, Iskele, Famagusta and Nicosia.
Searches in Russian show “North Cyprus” on top of the list. Russian speakers then continued searching for “purchasing conditions”. Top ranking of cities at searches in Russian are Kyrenia and Iskele. Their search of property types concentrates around villas and flats equally. The conclusion derived from searches in Russian is that they don’t have sufficient knowledge about the country and conditions of purchasing. Their considerable interest in reading our articles about “Investment in North Cyprus” at Kibris Emlak Merkezi vouches for this fact as well.
Users of search engines as well as visitors of Kibris Emlak Merkezi in Turkish, English and Russian predominantly research about companies in real estate business after completing searches mentioned above. Users of our website interested in property ads or projects continue to read about companies, their news and carry on to reading their interviews. They progress reading according to the intended content map at our platform.
What type of properties are foreign investors interested in and which areas do they prefer?
Prioritized areas of foreign investors are quite predictable. First and foremost, they purchase homes in areas where an expat community from their country of origin already is established. Kyrenia, Esentepe and Iskele are the most popular among them. When it comes to investment for speculation purposes they are looking for areas with high potential of capital gain.
The type of preferred property differs depending on the country they come from, but 2 options actually stand out.
The first option is to buy a property at a holiday home complex, where they can stay to relax and everything else is handled by the property management of the compound.
The second preferred option are homes in villa complexes with property management facilities where they can fulfill their dream of an independent lifestyle.
You can follow news, investment opportunities and property ads of the real estate industry in North Cyprus at our portal in English, Turkish and Russian.
KIBRIS EMLAK MERKEZİ
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