Northern Cyprus market Drivers

Economy

Northern Cyprus is now enjoying a stable period bringing in increasing FDI. Current Land and Building cost are significantly lower than those of Southern Cyprus.

In Jan 2008 Southern Cyprus will enter the Euro zone and we would expect the market to enjoy an increase of around 19% plus normal; inflation.

Public sector consumption has grown from 4.2 per cent between 1990-2000, to 11.8 per cent in 2005, stimulating further investment and worldwide property investor confidence. Government investment in the economy grew from 3.4 per cent in 2000 to 16.1 per cent in 2005. Not to be outdone, private investment has kept pace with a leap from 2.7 per cent in 2000 to 15 per cent in 2005.

The GDP for 2006 was around £2.2 billion ($4.54 billion). The Northern Cyprus government is aiming for 7 per cent growth in the economy in 2007.
The GDP growth rates of the TRNC economy in 2001-2005 have been 5.4%, 6.9%, 11.4%, 15.4% and 10.6% against 4.1%, 2.1%, 1.9%, 3.8% and 3.9% in the Republic of Cyprus.[18] This growth has been buoyed by the relative stability of the Turkish Lira and a boom in the education and construction sectors.



Tourism

Northern Cyprus is enjoying a massive boost to its holiday visitors since access was granted between South and North

Political Stability

Although the area has had its troubles the partition is now offering free access and stability in the area appears to be in place
As Turkey moves toward the EU the stability of the area will be assured

Factors

The Price differential between North & South must reduce.
The South’s entry to the Euro zone will drive their price up
Therefore the Land & Build Prices in Northern Cyprus must appreciate.

In 2004, the EU alone invested £175.4 million (€259 million) in Northern Cyprus to facilitate trade and development and strengthen its economic ties to the EU.