Buying a property in Cyprus

Especially in these times of uncertain property values ​​in Britain, more and more people are considering buying abroad as a sensible option. Homes abroad are viewed by most people as something of a luxury, but as an investment they can often yield high financial returns and, whether for an investment, holiday home or retirement home, buying in the abroad today seems like a better option. financial proposal than in the UK. The Mediterranean region has long been a favorite for UK buyers and although Spain was ‘at the top of the list’ for many years, a sizeable number of buyers have been looking further afield. For many reasons, Cyprus property is attracting a lot of attention. Not least, due to its excellent value.

The history of Cyprus is long and fascinating, but in modern times it was a mixed community of Greek and Turkish Cypriots living under a joint government. To simplify a very complex situation, after a military coup by a hardline Greek faction in 1974, troops from the Turkish mainland took over part of the island to safeguard the Turkish Cypriot population. The island was effectively split in two, with the Turkish Cypriot community occupying the north, the Turkish Republic of Northern Cyprus (or TRNC), and the Greek Cypriots occupying the south. The United Nations drew and patrolled a formal border, known as “the green line.” Until recently, only the South was internationally recognized as an independent country, but following the South’s accession to the EC, many informal connections have been made. Today there are consular representatives in Northern Cyprus from countries such as Great Britain and there are now many established border points where EC passport holders (as well as Cypriot citizens) can cross freely.

The resulting situation regarding property has some twists and turns and it is essential to know all the facts before considering the purchase of any villa in Cyprus or indeed any holiday home in Cyprus. In the 1974 partition, many Turkish Cypriots lost property or land in the south of the island, and many Greek Cypriots suffered similar losses in the north. The political situation in Cyprus is completely stable, but there have been a number of efforts to finalize the issue, of which by far the most comprehensive is the ‘Annan Plan’. This United Nations proposal was voted on in referendums held on both sides of the island, although while the Turkish Cypriot community was in favor, the Greek Cypriots rejected the agreement.

North Cyprus property is divided into various types. ‘Turkish title’ or ‘foreign title’ land is, as the names suggest, land that prior to the partition of Cyprus was owned by anyone other than a Greek Cypriot. Such land is rarely available on the market and commands a premium price. The ‘Esdeger property’ is also known as the ‘exchange property’. The Turkish Cypriots who lost property in the south of the island in 1974 were given title to the Greek Cypriot land in the north and according to all proposals put forward so far, this land would retain its current property title. Most properties in North Cyprus fall into this category. ‘Tahsis property’ was land or housing given to settlers from the Turkish mainland or in recognition of military or government service. This land is considered to have secure title, but some people have suggested that it might be subject to some compensation payment in the event of a full political settlement. There are also some government leased properties but these are unlikely to be available on the normal market from any North Cyprus estate agent.

So is property in North Cyprus a sensible option? Well, financially it seems like a good option and although the massive price boom has now leveled off, you will be pleasantly surprised at how much your pound buys in terms of housing. Rents in North Cyprus are also increasing and there are many options. If you’re considering retirement or long-term occupancy, renting for a year or so is a good way to get a feel for the island and a bit of local knowledge. Building standards are generally good, although as in all Mediterranean countries construction methods and use of materials can be very different to the UK. A competent surveyor or builder will be able to give advice and (as with the purchase of any property in any country) a reputable solicitor is essential.

There are many Cyprus real estate agents and many Cyprus property developers and the choice can seem daunting. A little research goes a long way, but so does your money here! There may never be a better time.

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