In the shadow of the pandemic, whose effects we started to see in November 2019, we have completed two years and entered the third year. The pandemic is already a very powerful factor on its own that we cannot control by its nature in the investment sense. However, these days as we enter 2022, the 'factors we cannot control' are not limited to a single pandemic:

In addition to the pandemic, we are also under the influence of 1- high exchange rate, 2- high inflation and 3- negative real interest rates, which are still beyond our control in terms of investment. We can also add the current 'election calendar' specific to our country.

When we put all these factors together, we can say that there are not very sunny days for the real estate market in Northern Cyprus at the beginning of 2022: 1- The purchasing power of domestic buyers has been seriously weakened due to high exchange rates and high loan rates, especially if there is no family support for first (young) buyers. It has become very difficult for them to purchase housing, 2- Again, due to the high exchange rate, the rents have largely reverted to TL (i.e., they have come down) and there has been a real decline in rental incomes and a decline in the demand and prices of flats in rental flats, 3- Due to the nature of the Omikron Variant, which has entered our lives. With the number of cases reaching astronomical figures, I observe that both Foreign Buyers and Cypriots living abroad postpone their arrival in Cyprus and thus their real estate purchases from Cyprus. All these factors cause a decline in real estate movements in all regions of Northern Cyprus.At the moment, buyers who provide a small upward divergence to the market are only domestic and Turkish land buyers who do not want to keep their foreign currency deposits at negative interest rates. The fact that Cyprus is an island and that the land prices do not decrease statistically to a large extent keeps this buyer market alive, even if the number is small.

With my love and respect,

Dengiz KÜRŞAT

Avertiss International Real Estate & Consultancy

+905338512323 (WhatsApp)