Secondary Housing Market in North Cyprus

The housing market in North Cyprus is diverse and large.

On an area of 3,355 km², there is a variety of primary and secondary properties. The secondary housing market in North Cyprus is growing and developing rapidly. Every day, there are many real estate registrations in the land registries throughout the island. It would seem that the pandemic is raging all over the world… Oh, no… Trades happen every day! Demand! This is the main reason for the construction and sale of real estate in North Cyprus. Many people want to buy an apartment or villa here… As long as there is demand, then there will be offers! 🙂 The eternal question that torments future property owners is whether to save up for primary housing or buy a secondary one? Just kidding… 🙂 🙂 🙂 Buy primary or secondary! 🙂 This is by no means a choice between bad and good. Don’t even think about it! There are tons of decent deals in both markets. You just need to ask yourself a simple question: “What do I want?!” This will be a fundamental beacon on the way to buying a home in Northern Cyprus.

Secondary Housing Market in North Cyprus

To understand which way to look, you need to understand the difference between the secondary and the primary. In this article, we will reveal in detail all the nuances of this issue.

Advantages of primary housing

• Cost. Comparing what is more expensive – primary or secondary, people stop at new buildings precisely because of the price. The greatest benefit is received by those who made a purchase at the construction stage, because the cost of housing under construction at the start of sales is minimal.

• Wide range of choices. There are a lot of offers from developers. The buyer has the opportunity not only to choose an area, but also a specific floor, layout and even view characteristics. Also, talk to the developer about the decoration and choose the color scheme of the interior (laminate, tile, kitchen, etc.)

• Infrastructure. Most modern residential complexes are built simultaneously with vital facilities: there is a school nearby, shops, cafes and restaurants, etc.
• Installment. It is not necessary to pay the entire amount at once. There is an installment plan. Down payment 30%, and interest-free installments for the duration of construction.
• Deferred payment for documents. Payment for titles, taxes and other documents will be made after the completion of construction.

Disadvantages of primary housing

• Deferred ownership of real estate. Until the facility is put into operation, you do not own anything except the so-called right of claim.

• Waiting for check-in and lack of furniture. Not everyone is pleased to part with a large amount of money, wait for the delivery of the object, and even think about how to furnish the house.

• Lottery with neighbors. Unfortunately, there is no way to find out who will live with you on the same site, and there is always a risk of stumbling upon very “noisy” ones. This can greatly affect your comfort level.

• Temporary absence of the local area and construction waste. The disadvantage of large complexes in the primary is that the house was commissioned, and the neighboring one is still being completed. That is, you have moved in and live, and the improvement of the territory is postponed for another six months or a year. And in order to understand what is better, primary or secondary housing specifically for you, let’s reveal the features of the second type of housing.
• “Blind Cat”. In the primary, you do not know whether there is (or will be) a military unit nearby. Are there any restrictions on obtaining a title for foreigners? What a “swing”, you can’t check it personally… Will a foreigner (you) be able to obtain permission to re-register ownership at the end of the construction? And we are not talking about large complexes now. We are talking about small complexes, or detached houses.
• Service company. Yes, the first and second years the pools will be clean, the trees will be cared for. And it is not known what will happen to the management company (Management Company) in 3 years. The situation can change dramatically and the neighbors quarrel with the management company. Or everyone will unanimously say: the pool is expensive for us. Let’s not serve it. And that’s it, we sailed 🙂 The view from the window of the green pool is still a pleasure 🙂 There is no housing and utilities here, as in Russia. Here the complex is managed by you, your neighbors and the head of the complex.

Advantages of secondary housing

• Ready-made infrastructure. Apartments on the secondary market, as a rule, are located in inhabited areas in which the surrounding infrastructure is already developed: kindergartens and schools, shops, pharmacies, etc.

• Ready-to-live housing. In most cases, you buy a lived-in apartment, which you can move into immediately after the completion of the transaction. Saving on repairs will depend only on you. If you are satisfied with everything for the renovation inside: change a couple of sofas, hang new curtains and that’s it. Ready!

• Possibility to get to know the neighbors before buying. If you care about this point a lot, you can always find out who surrounds you and make a decision about the deal based on this. Go out into the complex and just chat with the neighbors. Or rent an apartment in a neighboring house for a day or two and take a walk with your wife in the evening to understand what is happening inside your complex when evening/night comes… 🙂
• Tax component. Taxes paid (for example: VAT). Plus, the cost can be found below the market price. All meters are also connected.

• Bargaining opportunity. Most sellers artificially inflate the cost of housing so that there is an opportunity for dialogue and bidding. Be sure to take advantage of this opportunity. You can always reduce the price if you adequately understand all its advantages and disadvantages.
• Ability to check all documents. Do the neighbors have a title or not? If there is, then you can get it. You will know exactly what the situation is with the entire package of documents. Legal issues – in the TRNC this is a big plus.

Disadvantages of secondary housing

• Payment of the full amount. Pay the full cost of the property. And this amount is not always available here and now.
• Deterioration of the housing stock and hidden defects. Faulty sewerage, overloaded electrical wiring, dirty entrance, leaking roof or freezing walls, mold on the walls – all this can greatly spoil the joy of the long-awaited purchase.
• The layout is not legalized. An extension near the house (it is not in the master plan), the fence was erected by the previous owner in the wrong place, etc.
• Unfinished documents. The previous owner may have underpaid something and you need to complete it. Naturally, all this is revealed at the stage of checking documents. There may just be an unpleasant moment that you want to buy and register everything for yourself right now. And you can’t, because the documents need to be brought to mind.

Inference

There is no unambiguous answer to the question of which is more profitable, primary or secondary. It all depends on the needs of a particular buyer. An apartment in a new building is more suitable for those who have the opportunity to plan their move in more than six months in advance and are not ready to put up with the disadvantages of the secondary market. Well, if the issue of moving is acute, it makes sense to consider secondary housing. This must be done as responsibly as possible in order to cut off the numerous risks that we have talked about. The best option is to contact real estate professionals. Happy shopping! 🙂

What is currently for sale in North Cyprus

Source: Veles Enterprises Article prepared by: Valerii Veles

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