Turkey and Northern Cyprus: new opportunities for investors

Turkey and Northern Cyprus: new opportunities for real estate investors

The real estate market in Turkey and Northern Cyprus has been experiencing significant changes recently. Despite a decrease in demand and the introduction of new laws that have caused concern among investors and potential relocators, the market remains attractive for investment.

One of the key factors affecting the market has been the introduction of short term rental control measures by the Turkish government. This has led to a significant reduction in the number of foreign nationals, particularly in tourist areas. As a result, prices and demand for hotel rooms have fallen.

However, despite these challenges, there are still interesting opportunities for investors. For example, in Ankara it is possible to obtain a residence permit with an investment of only 100,000 dollars. New residential complexes are adapting to the new laws by obtaining the necessary licenses and collecting signatures from residents.

It is important to note that the situation varies from region to region. In Bodrum, property owners continue to rent out their properties on a short-term basis, while in Istanbul the market is more regulated.

In terms of yields, rental income from one-bedroom apartments in tourist resorts is around £600-800 per month. Annual rental yields can be as high as 8-15% and these figures are expected to increase over time.

An interesting feature of the Turkish market is the relative underdevelopment of the hotel sector. This leads to the fact that tourists often prefer short-term rentals instead of staying in hotels. It is worth noting that rental income is usually calculated in British pounds sterling.

The hotel sector in Turkey is a separate area for investment. Its underdevelopment creates potential for growth and may be of interest to investors willing to invest in long-term projects.

Despite certain risks associated with changes in legislation and fluctuations in demand, the real estate market in Turkey and Northern Cyprus continues to offer new opportunities for investors. The key to success in this environment is to carefully analyze the regional characteristics and long-term prospects of the market.

In conclusion, while investing in real estate in Turkey and Northern Cyprus involves some manageable risks, it also offers new opportunities for those who are willing to adapt to changing market conditions and seek out unconventional solutions.