With the UK economy and property market struggling, and investing in the Euro appearing less and less appealing by the day, many people are scratching their heads and wondering: just where is the best place to buy investment property?
Tips on buying investment properties abroad often tend toward the well trodden path, but Sterling’s current relationship to the Euro means that the appeal of, for example, Spanish or French property is not what it was. So, without the nearby sunshine and perceived security of Spain and France as an option, many would be UK property investors have to ask themselves; just where can I buy property abroad?
Many people, including a large number of Russian investors, currently think that the best place to buy investment property is North Cyprus. Property prices are low – around half to a third of those in the south and far less than in other Mediterranean countries, but those low prices are entirely predicated on the division that has existed on the island for the last thirty years.
However there are many factors that lead to an optimistic view on the current reunification efforts in North Cyprus. Both Greek Cypriot and Turkish Cypriot leaders – Demetris Christofias and Mehmet Ali Talat respectively – share a left leaning world view and, perhaps more importantly, both have independently announced that they hold the aim of reunifying the divided island close to their hearts. Compared to the attitude of predecessor Christofias’s premiership bares a huge boost to the issue of reunification, and this was made apparent by the welcoming of the result that José Manuel Barroso, the President of the European Commission, gave following the Greek Cypriot’s victory this February.
The opening up of negotiations as well as borders has already led the North Cyprus property market to grow, and prices are now appreciating at 50 a year in some parts. In addition, foreign investment is already finding its way to North Cyprus, as the current reunification talks are being seen as likely to bring about a successful resolution to the long entrenched problem.
The International Crises Group (ICG), an extremely well regarded NGO, crystallised the prevailing attitude toward Cyprus in the title of their June report; “Reunifying Cyprus: The Best Chance Yet.” The thirty four page report made a number of recommendations to the various parties who have an interest in the reunification process.
The report urged Turkey, who obviously have an immediate role to play in the North Cyprus reunification issue, to “act unilaterally...at a time and in a manner intended to underline its goodwill for maximum impact in the EU and Cyprus.” The report also argued that with Turkey’s membership again open for review in 2009 the country should view a shift in attitude on the Cyprus issue as a “major opportunity...not a concession.”
The report recognized and addressed one of the dominating complaints that Turkish Cypriots make of EU involvement in the Cyprus problem: that, now Cyprus is a member state, any EU mediating would serve as a conflict of interest. For this reason, the report maintains that the UN “remains the only credible mediator between the Greek Cypriots and Turkish Cypriots.” Making special reference to Nikolas Sarkozy, the French President who has made public his aversion to Turkey joining the EU, the ICG argued for a cautious attitude regarding EU involvement on the Cyprus issue. “For every EU official or politician who wants a breakthrough on Cyprus, there often appears to be another who wants to use continued stalemate to block the progress of Turkey’s EU negotiations” the report said.
The report went on to commended the section of Turkey’s industry that is already reaching out to the Greek Cypriot community, stating that this kind of effort would be vital for the suspicions and bad blood that has developed over the last thirty years to be dissipated.
Despite the fact that the report points to many areas where there needs to be a doubling of diplomatic efforts – for example in the total lack of dialogue between Athens and Ankara –it does, overall paint a picture of a situation where, for the first time, reunification can finally go ahead. Just as Cyprus’ joining the EU has helped Greek Cypriots become as wealthy as Greeks, so too will the reunification of the island augment the economy of North Cyprus rapidly and to a great degree.
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