From the perspective of real estate sales, the market in Northern Cyprus is experiencing rapid growth. While many potential investors only began to take notice in 2021, by 2022, it had become a significant breakthrough. Specifically, in the first half of 2022, the volume of real estate transactions surged by 200% (compared to the same period the previous year) and the price of secondary housing increased by 30%, not to mention new developments in prestigious residential complexes in sought-after areas. By the third quarter, the number of transactions had risen even further and by the end of the year, thousands of buyers had applied for permanent residency.
2023 turned out to be almost stellar for the TRNC; prices for a number of properties doubled and the return on investment in housing rose to 30 to 40% per year. This remarkable event occurred even though the return on investments in real estate in Turkey averages 7 to 10% per year.
We have compiled detailed statistics by quarters for the year 2023 to facilitate your decision-making process regarding which area of the Turkish Republic of Northern Cyprus (TRNC) to consider for residence, depending on your goals: whether for personal living or investment, resale or rental purposes.
Content:
- FIRST QUARTER (January–March)
- By regions: brief conclusions
- Summary data:
- SECOND QUARTER: April to June
- THIRD QUARTER: July–September
- FOURTH QUARTER: October–December
- General conclusions:
FIRST QUARTER (January–March)
The first quarter already witnessed a significant increase in prices for all types of residential real estate in the TRNC. The number of apartment transactions surged by 10.27%, while villas/single-family homes saw a rise of 11.3%.
By regions: brief conclusions
Apartment prices for sale in Nicosia increased by 7.27%, with the average price per square metre of housing in the region reaching GBP 625.84 and the payback period averaging 13.7 years.
However, villas were in higher demand, with their prices increasing by an average of 11.44% for the quarter.
In Kyrenia (or Girne), villas became even more expensive, with prices increasing by 11.25% for the quarter. The average price per square metre in the region rose to GBP 1,434.42. Additionally, the average regional price per square metre of apartments for sale in Kyrenia during the first quarter was GBP 1,157.71, with a calculated payback period of 15.5 years.
Famagusta is considered an "average" priced area, but the return on investment there is quite prolonged. The average price per square metre of apartments for sale was GBP 750.76 (an increase of almost +11.7%), with a payback period of 16.9 years. Villas increased in price by 11.49%, reaching GBP 988.43 per square metre.
Regarding Iskele, it stands out as the most expensive area: the average price per square metre in multi-apartment buildings was GBP 1431.34.
In summary, the villa segment stands out for its stability: regardless of the region, the price increased by about 11.3% over the year.
Apartment rentals also demonstrated stability, with price increases being independent of location: averaging 11.5% for the quarter. However, it was cheapest to rent an apartment in either Nicosia or Famagusta.
Summary data:
Apartments for sale
| Price increase per quarter | Average price per 1 m2 (in British pounds) | Investment payback period (in years) | |
|---|---|---|---|
| On average across TRNC: | 10,27% | 911,16 | 15,6 |
| Nicosia | 7,27% | 625,84 | 13,7 |
| Kyrenia | 11,36% | 1157,71 | 15,5 |
| Famagusta | 11,69% | 750,76 | 16,9 |
| Iskele | 11,46% | 1431,34 | No data |
Villas for sale
| Increase in price per quarter | Average price per 1 m2 (in British pounds) | |
|---|---|---|
| On average across TRNC: | 11,33% | 1238,74 |
| Nicosia | 11,44% | 847,33 |
| Kyrenia | 11,25% | 1434,42 |
| Famagusta | 11,49% | 988,43 |
| Iskele | - | - |
Apartments for rent
| Increase in price per quarter | Average price per 1 m2 (in GBP) | |
|---|---|---|
| On average across TRNC: | 11,57% | 4,86 |
| Nicosia | 11,44% | 3,81 |
| Kyrenia | 11,51% | 6,22 |
| Famagusta | 11,51% | 3,7 |
| Iskele | - | - |
SECOND QUARTER: April to June
There was an increase of 10.2% in apartment sales and 8.71% in villas country-wide.
In Famagusta, prices for apartments increased by 11.62% from April to June, with the average price per square metre in the region reaching GBP 838 by July and the return on investment calculated at 16.9 years.
In Kyrenia, villas were in higher demand, experiencing a price increase of 10.17%. The average price per square metre for mansions in this region rose to GBP 1,580.33. Apartments also enjoyed demand, with the price per square metre averaging GBP 1,277.3 in the second quarter and the return on investment being 15.7 years.
In the highly sought-after area of Iskele, the average price for apartments listed for sale was GBP 1591.48 per square metre.
In Nicosia, the cost of apartments increased by 8.89%, with the average price per square metre rising to GBP 681.46 and the return on investment decreasing to 13.9 years. Villas only experienced a 3.6% increase, less than in other regions, with the average price per square metre for mansions being GBP 877.84.
Apartments for sale
| Price increase per quarter | Average price per 1 m2 (in British pounds) | Investment payback period (in years) | |
|---|---|---|---|
| On average across TRNC: | 10,2% | 1004,13 | 15,9 |
| Nicosia | 8,89% | 681,46 | 13,9 |
| Kyrenia | 10,33% | 1277,3 | 15,7 |
| Famagusta | 11,62% | 838 | 16,9 |
| Iskele | 11,19% | 1591,48 | No data |
Villas for sale
| Increase in price per quarter | Average price per 1 m2 (in GBP) | |
|---|---|---|
| On average across TRNC: | 8,71% | 1346,65 |
| Nicosia | 3,6% | 877,84 |
| Kyrenia | 10,17% | 1580,33 |
| Famagusta | 11,41% | 1101,22 |
| Iskele | - | - |
Apartments for rent
| Increase in price per quarter | Average price per 1 m2 (in GBP) | |
|---|---|---|
| On average across TRNC: | 8,69% | 5,28 |
| Nicosia | 7,03% | 4,07 |
| Kyrenia | 9,34% | 6,8 |
| Famagusta | 11,42% | 4,12 |
| Iskele | - | - |
THIRD QUARTER: July–September
In the third quarter of 2023, there was an average increase in apartment sales nationwide by 6.28% and villas by 7.15%.
The cost of apartments in Famagusta increased by 10.43%, with the average price per square metre in the region reaching GBP 925.43 and the return on investment fixed in the third quarter at 17.3 years. Villas saw an immediate increase of 11.73%, up to GBP 1,230.38 per square metre.
However, in Kyrenia, villas increased in price by 4.36%, reaching GBP 1,649.29 per square metre. Apartments rose to GBP 1,350.69 per square metre, with the return on investment calculated at 15.7 years.
In Iskele, the average price per square metre for apartments listed for sale was GBP 1,771.35.
In Nicosia, the cost of mansions surged by an average of 11.27%, reaching GBP 976.76 per square metre. Apartments increased by 3.05%, with the average price per square metre in the region remaining at GBP 702.22 per square metre, maintaining a relatively short return on investment of 13.7 years.
Apartments witnessed the highest increase in price in Famagusta and Iskele; twice as much as in Kyrenia and three times higher than in Nicosia.
Apartment for sale
| Price increase per quarter | Average price per 1 m2 (in GBP) | Investment payback period (in years) | |
|---|---|---|---|
| On average across TRNC: | 6,28% | 1067,17 | 16 |
| Nicosia | 3,05% | 702,22 | 13,7 |
| Kyrenia | 5,75% | 1350,69 | 15,7 |
| Famagusta | 10,43% | 925,43 | 17,3 |
| Iskele | 11,3% | 1771,35 | No data |
Villas for sale
| Increase in price per quarter | Average price per 1 m2 (in GBP) | |
|---|---|---|
| On average across TRNC: | 7,15% | 1442,9 |
| Nicosia | 11,27% | 976,76 |
| Kyrenia | 4,36% | 1649,29 |
| Famagusta | 11,73% | 1230,38 |
| Iskele | - | - |
Apartments for rent
| Increase in price per quarter | Average price per 1 m2 (in GBP) | |
|---|---|---|
| On average across TRNC: | 5,6% | 5,57 |
| Nicosia | 4,95% | 4,27 |
| Kyrenia | 5,3% | 7,16 |
| Famagusta | 8,09% | 4,46 |
| Iskele | - | - |
FOURTH QUARTER: October–December
Traditionally, the fourth quarter of any year is considered the least dynamic period in terms of real estate sales. By one measure, there was even a minimal decrease: apartments in Nicosia dropped by 0.14% in price. However, on average across the country, property prices continued to rise, albeit at a slower pace than in the previous three quarters. Prices for apartments in the Republic increased by 4.33%, while villas increased by as much as 10.76%.
In Famagusta, apartments rose by 9.96% in the fourth quarter, with the average price per square metre reaching GBP 1,017.65 and the return on investment reaching 18.3 years by the end of the period. Villas increased by 11%, with the price per square metre reaching GBP 1,365.76.
In Kyrenia, the average regional price per square metre for apartments listed for sale was GBP 1,426.58 with a return on investment of 16.7 years. The cost of villas continued to increase at approximately the same pace as in Famagusta: up by 10.84%. The average price per square metre approached two thousand British pounds: GBP 1,828.14.
In Iskele, even apartments were priced similarly to villas in Kyrenia, with the cost per square metre reaching GBP 1,826.04. The selling price of property here increased by 3.09% for the quarter.
While Nicosia experienced a slight decrease of 0.14% in the cost of apartments, the average price per square metre in this property segment was GBP 701.24, with a return on investment of only 13 years. Villas, on the other hand, demonstrated a parable dynamic with mansions in Kyrenia and Famagusta, increasing by up to 10.41% for the quarter. The average price per square metre for villas listed for sale in the region was GBP 1,078.4.
Apartments for sale
| Price increase per quarter | Average price per 1 sm2 (in GBP) | Investment payback period (in years) | |
|---|---|---|---|
| On average across TRNC: | 4,33% | 1113,42 | 16,7 |
| Nicosia | -0,14% | 701,24 | 13 |
| Kyrenia | 5,62% | 1426,58 | 16,7 |
| Famagusta | 9,96% | 1017,65 | 18,3 |
| Iskele | 3,09% | 1826,04 | No data |
Villas for sale
| Increase in price per quarter | Average price per 1 m2 (in GBP) | |
|---|---|---|
| On average across TRNC: | 10,76% | 1598,12 |
| Nicosia | 10,41% | 1078,4 |
| Kyrenia | 10,84% | 1828,14 |
| Famagusta | 11% | 1365,76 |
| Iskele | - | - |
Apartments for rent
| Increase in price per quarter | Average price per 1 m2 (in GBP) | |
|---|---|---|
| On average across TRNC: | 2,64% | 5,72 |
| Nicosia | 5,32% | 4,5 |
| Kyrenia | -0,67% | 7,11 |
| Famagusta | 4,06% | 4,64 |
| Iskele | - | - |
General conclusions:
- Regarding the segment of villas for sale, it can be observed that by the end of the year, there are practically no mansions priced at less than GBP 1,000 per square metre in TRNC. These properties show a steady and sometimes faster increase in value compared to apartments.
- The payback period for housing, even without renting it out, ranges from 13 to 18 years, which remains very profitable. As for the rental business, apartments in Famagusta demonstrate the quickest return for investors (based on the results of 2023, which suggests that this trend will continue into 2024).
*Statistics provided by the leading local portal 101evler Real Estate Index, based on research conducted in collaboration with REIDIN Data Analytics.