London, UK (PRWEB) August 9, 2007
Tourism has been racing upwards since the year 2000, and Northern Cyprus and attracting huge numbers from the EU and further abroad. There has been an average annual increase of 6.2% in tourist numbers over the last 4 years. This rapid increase in tourism, coupled with the rise in property prices across Northern Cyprus, property investment news indicates that the demand for holiday rentals is set to grow at a rapid rate over the next few years.
The City of Famagusta and its surrounding towns are receiving marked attention from property developers. Ideally located only 30 minutes from Ercan Airport and 40 minutes from Larnaca International airport, both of which offer a choice of carriers, including; BA, BMI and Cyprus Turkish Airlines. The town of Bogaz, in particular, is steeped in history, plays host to some of the most stunning beaches, offers a retreat from the hustle and bustle of the south and for avid golf players there is a £7.25 million, Arne van Amer-ongen designed, championship golf course, all within the area. Bogaz is drawing in huge property investment, mainly for prestigious, high quality developments and coupled with the travel operators receiving government sponsored incentives, tourism growth is set to continue and flourish.
The Northern Cyprus economy, which grew by 10.6% in 2006, has been fuelled by the growth in the construction sector as well as tourism. Economic growth in Northern Cyprus has averaged 10-11% per annum during 2003-2007. Furthermore, the news that Cyprus will be switching its currency to the Euro in 2008 has already made an impact on Northern Cyprus. Income and property prices are now at the same levels as the south. In 2004, the EU alone invested £175.4 million in Northern Cyprus to facilitate trade and development and strengthen its economic ties to the EU. Turkey will invest some £275 million of funds over the next few years which will have a positive impact on real estate prices and make for an exciting time for property investment.
Applications made by foreign nationals, for Northern Cyprus property amounted to a total area of 2.1 million m2 in 2004 compared with only 309,000 m2 in 2001, an increase of 580%. The value of property sales in 2004 reached a staggering £983 million with rental yields of around 8-12% to be expected. The increased demand for housing and the tourists visiting from the south has boosted the Northern Cyprus investment market immensely. Property prices rose by 46% between the first half of 2003 and the first half of 2006 and the average land value rose by a massive 417% to 700%. Despite this immense growth rate, Northern Cyprus property prices are still much lower than the rest of Europe, especially when compared to other emerging markets and offers some serious returns.
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