Assuming you buy a legal property in the occupied areas, is it worth it?
It is a fact of life that there is a property boom in the Turkish occupied areas, with numerous private residential/tourist projects under development, while land is sold at an extensive rate. This sudden demand/market activity, has been caused by the easing of restrictions regarding communications between the Republic and the occupied areas. The main one being the free use of Larnaca airport and the ease with which one can use the airport and with a one hour drive reach the north.
At the same time, European Community members can benefit from all the facilities of the Republic (health cover, secure banking, quality goods etc) and at the same time reside in a, perhaps, more inviting natural environment, a lower cost of living (approximately 20 per cent) and of course lower property prices (approximately 35 per cent) in the occupied areas.
The price difference of real estate is large and many people are prepared to put up with the electricity cuts and cuts in water supply, lower quality of health, security etc, “but money has no ethics”, as we like to say in this nature of investments. So, at least, for those who are EU members, it appears that they can have the best of both worlds, especially when property prices within the Republic have shown an appreciation in the region of 20 per cent-30 per cent per annum over the last two years.
What then are the problems, if any, for buying and living and selling property for profit in the occupied areas in terms of real estate always for non-Cypriot buyers?
* For one, 88 per cent of the now Turkish held area is owned by Greek Cypriot refugees who have a legal title. So only 12 per cent of the land is Turkish owned and as such this limits to a great extent the “trouble free” titles which one can buy/develop/build and sell. As such, Turkish Cypriot owned property (prior to 1974) is sold at a premium, since it is expected that in the event of a solution to the Cyprus problem, these properties will not be effected.
* The possible solution of the Cyprus problem, will be based in one way or another on the Annan plan. This plan stipulates that whatever happened happened, up to December 31, 2000. Thereafter, any development etc that takes place on Greek-Cypriot owned property is illegal and cannot be recognised for anything, not by the UN, nor the EU. So most of the purchases and/or development projects which have been/are in the process of development after the 12/2000 deadline are in danger of being returned to their Greek-Cypriot owners (as is, or as vacant land).
* The recent Cypriot Court decision on the Apostolides (Orams) case, and also its repercussions, will make anyone who occupies property of a Greek Cypriot (or of course anyone who occupies illegally a Turkish-owned property in the Republic controlled area) is liable to pay damages, demolish any property that he has bought/erected and he might end up also in prison, not only in Cyprus, but, through an international arrest warrant, he will be so arrested abroad (an EU citizen in particular), whereas his foreign property (i.e. property within his country of origin) will be, by extension, blocked. Anyone who has no money to compensate the legal owner might find that his property abroad be placed in auction, for the court decision to be effected. Yes, of course, there are ways and means to by-pass this last possibility, but is this a way to buy property?
So, readers, it is only logical that we refer to casino and real estate, when we refer to purchases in the occupied areas, since yes, you can have a good deal since if a solution never happens you will be a winner. If it does not happen, then you will lose. It is like a roulette, with the black and red colour? Is it worth it? It is up to the individual to decide.
By Cyprus Mail: archive article - Sunday, April 10, 2005
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