The North Cyprus Developer

Ever visited somewhere and loved it so much that you wanted to stay? That's what happened to Natalie Haigh when travelling around Europe. She fell in love with Cyprus and joined the long-established estate agent Boray Developments, in Kyrenia, three years ago. We talk to Natalie about being a sales manager in a volatile industry and how politics has a big effect on business...

By Camilla Kaas Stock

How has the market changed over the last five years?
"When we had the referendum in 2004, we all thought that we would be joining the EU, and that North Cyprus property prices would come in line with the south. So in 2003-2004, the property market soared quite high. In 2004 alone we saw 5,000 new foreign buyers. Now the market has steadied off to a more normal rate and we probably see about 2,000-2,500 new investors each year.

"Four or five years ago you could buy a three bed villa with a pool for £65,000. Today you will have to pay between £89,000-£145,000, depending on location and facilities. So if you bought a property in 2004 and sold it now, you would make £30,000-£40,000. If you buy off-plan in the current market, you are looking at a 20 per cent return on your investment by the time it is finished. However, if there is a solution to the Cyprus issue, then those who buy property here today, will see the value virtually triple over night."

Who are your customers?
"The bulk of our clients are people who are looking for retirement or holiday homes, but during the last 12 months we have seen more young families wanting to move out here. Our main market is the UK - it represents about 80 per cent, with 20 per cent made up of other nationals and locals. We also get a lot of British investors who want to take some of the equity out of their homes in the UK and put it somewhere they will see capital growth and also get some rental income."

Why should people buy property in North Cyprus?
"The government in North Cyprus has seen what has happened in places like Spain and Portugal with regards to over-development. Here we now have regulations in place that will only allow us to build two stories high and not within a hundred meters of the sea. We can't build high upon a mountain, and 75 per cent of the building plot has to remain a green area.

"We have around 354 days of sun a year, and one of the longest diving seasons, lasting from March until November. There are some lovely dive sites. Way of life is slow here and with prices a third of what they are in Spain, Portugal or France, I think we have plenty to offer."

How are building standards here?
"I would say the standards here are good, in line with other countries like Spain and Portugal. This wasn't always the case, but the government has become much stricter at enforcing the regulations and it now has a team of architects who will go out to sites and investigate. All properties come with a one-year full guarantee and a minimum of a five-year structural guarantee. Everything here has to be built to earthquake standards with re-enforced steel, as we occasionally get small tremors. The developers now also use thermal blocks, a proper damp-proof course and cavity walls."

What do you advise people who are interested in buying property here?
"It is always important to be careful. There are a lot of estate agencies here and not all of them are reputable. I would also suggest people don't buy an old, re-sale property, because this was someone's actual home and may be given back in the future. However, someone's living rights exceeds title rights so, if this happened, the government would have to replace the property with one of equal value and status.
"Also, I would also warn people to be wary if someone says they have a piece of land to sell and know somebody who can do the build very cheaply. You could very easily be exploited."

How do you feel after the election in the south?
"I feel much more positive about the future for North Cyprus, also the fact that Kosovo is now recognised might have some impact on the situation here. There is also talk of direct flights coming here, which of course will make a big difference."

Any comments about this article, please post them on our forum page http://www.ipb-magazine.com/en/forum