Investors' new preference: properties with foreign currency rental income.

The growing rental crisis, coupled with a 25% rent cap, is encouraging investors to purchase properties abroad that generate rental income in foreign currency. According to Turkish Statistical Institute (TÜİK) data, Turkish citizens purchased 35,184 properties abroad in 2020, a figure that rose to 45,789 in 2021. While the latest figures are not yet available, an increase is anticipated.

Investing in real estate in Northern Cyprus offers significant advantages in terms of payback periods compared to many other countries. The region is rapidly becoming a favorite among investors due to the availability of rental income in sterling and amortization periods of 9-10 years. Investors looking to protect their savings from inflation can acquire an approximately 70 m² apartment for an average of £115,000, generating a potential monthly rental income of £500. In a recent article, the world-renowned Forbes magazine ranked Northern Cyprus as the top five coastal countries in the world for real estate investment. Citizens of Russia, Iran, and Germany are among the countries with the highest number of residential property investments in Cyprus.

Northern Cyprus, with its climate that enjoys sunshine almost all year round and its affordable prices, offers the advantage of more economical holidays than European countries. With prices rising significantly in coastal cities in Turkey, there has been a noticeable increase in demand for villa-style properties in the Girne and İskele regions of Northern Cyprus.

With the newly emerging visa issues, Northern Cyprus appears set to remain a preferred destination due to both the appreciation of house prices in foreign currency and rental income in foreign currency.