Northern Cyprus – real estate market – development over the last 10 years.

Over the past decade, Northern Cyprus has transformed into one of the most attractive Mediterranean destinations for investors and property buyers. A combination of favorable geographical location, mild climate, relatively low property prices, and a flexible legal system has turned the region into a magnet for foreign investments.
Key Trends in the Real Estate Market
From 2013 to 2023, housing prices in Northern Cyprus increased by an average of 50–70%. In popular areas such as Kyrenia (Girne) and Iskele, prices surged by as much as 100%. The growth has been driven by increasing foreign demand, infrastructure development, and economic stability.
According to real estate agencies, in 2013, the cost per square meter in Kyrenia was around €800, while by 2023, it had exceeded €1,600. In developing areas like Gazimağusa (Famagusta), prices rose from €600 to €1,200 per square meter.
Growing Interest from Foreign Buyers
Foreign buyers, including citizens from the UK, Russia, Germany, and the Middle East, have become the primary market participants. In 2022, foreigners accounted for 70% of all real estate transactions. British buyers remain the largest group due to historical ties with the region, but interest from Russians and citizens of CIS countries has shown significant growth.
According to the Ministry of Real Estate in Northern Cyprus, the share of transactions involving foreigners increased from 45% in 2013 to nearly 70% in 2023. The primary focus is on beachfront apartments and villas, as well as commercial properties and land plots.
Infrastructure Development
Infrastructure development has been a key growth factor. Over the past ten years, new international schools, hospitals, shopping centers, and sports facilities have been constructed. Transportation infrastructure has significantly improved, including road expansions and the modernization of Ercan Airport.
The construction of modern residential complexes meets growing demand. In 2023, the number of new properties increased by 30% compared to 2018. Many projects feature premium residential complexes with pools, spas, and other amenities.
Legal Framework and Investment Climate
Northern Cyprus offers a flexible legal framework. The property purchasing process for foreigners is transparent and straightforward. The local authorities actively promote investments by offering tax benefits and residence permit programs.
However, property ownership remains a crucial issue due to the region’s unresolved international status. In recent years, reforms and improved transaction transparency have helped mitigate risks.
Impact of the Pandemic
The COVID-19 pandemic had a short-term impact on the market. In 2020, the number of transactions fell by 25%, but the market rebounded in 2021, with a 35% increase compared to the previous year. Demand for country homes with private amenities particularly surged.
Future Prospects
Experts predict further growth in Northern Cyprus’s real estate market over the next five years. Key factors include tourism development, improved transportation accessibility, and increased foreign investor interest. By 2028, the average cost per square meter in Kyrenia is expected to exceed €2,000, while in Iskele it may reach €1,500.
Strengthening the legal framework and fostering international cooperation will make the region even more attractive to investors. In the long term, Northern Cyprus has the potential to compete with destinations like Spain and Portugal.
Conclusion
Over the past decade, Northern Cyprus has established itself as one of the leading destinations for real estate investments. Rising prices, growing interest from foreign buyers, and infrastructure development have made the market dynamic and promising. Despite remaining risks, the region continues to attract investors from around the world.