In recent years, real estate in Northern Cyprus has become one of the most popular areas for investment and buying housing by the sea.
In terms of key parameters – cost of living, utilities, security, taxes and profitability – the North Cyprus market is in many ways superior to Europe’s traditional real estate markets.
This article provides a detailed analysis of why North Cyprus real estate is considered a more profitable alternative to European real estate.
1. COST OF LIVING AND GROCERY BASKET
One of the main advantages of real estate in North Cyprus is the low cost of living.
The average monthly grocery basket per person is 180-250 euros.
For comparison:
Spain and Portugal – €280–350
Germany and France – €350–450
Average food prices:
Fruits and vegetables: €1–2 per kg
Bread: €0.6-1
Milk (1 liter): about 0.8 euros
Chicken (1 kg): €3.5-€4.5
The low cost of products directly increases the attractiveness of real estate in Northern Cyprus for both living and renting.
2. ELECTRICITY AND UTILITIES
Electricity tariffs in North Cyprus average €0.27-0.35 per kWh.
This is comparable to Italy and Spain and lower than in Germany.
Average electricity bills:
Winter: €40–70 per month
Summer (with air conditioning): €90–150 per month
More than 300 days of sunshine a year allow for the active use of solar panels, which reduces operating costs and increases the investment attractiveness of real estate in Northern Cyprus.
3. WATER, INTERNET AND MAINTENANCE OF COMPLEXES
Water: €10–20 per month
Internet (fiber optics): €20–30 per month
Mobile: €10-15 per month
Service charge in residential complexes:
Standard packages: 40–70 euros per month
Resort complexes with swimming pools and SPA: 80-120 euros per month
In Europe, a similar level of service often costs 150-250 euros per month.
4. SECURITY
Northern Cyprus is considered one of the safest regions of the Eastern Mediterranean.
Violent crime rates are low, and residential and tourist areas are well patrolled.
North Cyprus real estate is suitable for families, retirees, and investors.
5. TENANT LEASING AND EVICTION
The legislation of Northern Cyprus is more loyal to property owners than in most European countries.
If there is a registered lease agreement, the eviction of the non-payer takes 1-3 months.
For comparison:
Spain: 6-18 months
Italy: 12-24 months
France: up to 24 months
This makes real estate in Northern Cyprus convenient for the rental business.
6. TAXES AND MANDATORY PAYMENTS
When buying a property in North Cyprus:
VAT (new buildings): 5%
Registration of the contract when buying 6.5%.
Title Registration 3% after 1-1.5 years
Legal support: from 2500 euros
Annual taxes:
Property tax: €20–50 per year
In Europe, annual taxes often amount to 0.5-1.5% of the value of the property.
7. PROFITABILITY OF REAL ESTATE
Average net return on real estate in North Cyprus:
Studios by the sea: 8–12%
Apartments 1+1 and 2+1: 6–10%
Villas: 5–8%
In Europe, the profitability of real estate usually does not exceed 3-5%.
CONCLUSION
North Cyprus real estate wins over European real estate markets due to:
– low cost of living,
– affordable food basket,
– moderate utility costs,
– high security,
– loyal lease legislation,
– low taxes,
– high profitability.
North Cyprus real estate is a rational choice for investors and buyers,
who are looking for the optimal ratio of price, costs and profitability.
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