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FLUCTUATIONS IN THE [NORTHERN CYPRUS] PROPERTY MARKET
Prepared by Ian Smith
It is over one year since the Annan Plan was rejected by the occupants of South
Cyprus and whilst the Greek Cypriots made a negative turn round to the expected
positive vote, the Turkish Cypriots stood by their beliefs and returned a
healthy 65% positive vote for the Plan, yet incredibly the Greek Cypriot sector
of the island went into the European Union and the TRNC [Northern Cyprus] was
left out in the cold, despite their willingness to agree to it. In recognition
of their positive stance the EU promised to release substantial funding for the
TRNC [Northern Cyprus], but to date these promises have yet to be fulfilled.
During the world-wide media coverage that has illustrated the truth about the
Cyprus problems, investors [of properties such as apartments in Kyrenia] have
been examining the pros and cons of the island [Northern Cyprus] and have come
to the conclusion that the time has come to invest in a multitude of
industries, particularly in villa building [and apartments etc] and tourism
related projects which have fuelled the building boom we see today.
Government sources in the TRNC [Northern Cyprus] have clearly stated that
foreign and local investors [of properties such as apartments in Kyrenia] have
nothing to fear, as long as the purchases and investments are effected through
the legal system [of Northern Cyprus] and all relevant taxes are paid [to
Northern Cyprus authorities]. The TRNC [Northern Cyprus] Government is
democratically elected and Title Deeds [in Northern Cyprus] are issued on
receipt of Council of Ministers approval [of Northern Cyprus].
If the Greek Cypriots feel that they should be able to use their properties [in
Northern Cyprus], relinquished 30 years ago, or accept some form of
compensation agreement then why vote against the Annan Plan which clearly
covered the property issues? Surely, sitting at negotiating tables with their
Turkish Cypriot counterparts is far more likely to reach a successful
conclusion then voting negatively against the Plan and issuing arrest warrants
[to some in Northern Cyprus] which could have the effect officially closing
down the newly opened barriers. It has now reached the stage whereby the
foreign nationals and Turkish Cypriots have formed a company, EUPRO [in
Northern Cyprus], which will tackle the issuance of these warrants via their UK
Councils (QC). Furthermore the drafting of a black list of hotel owners in the
TRNC [Northern Cyprus] whereby tourists are told that they could be liable to
be prosecuted if they visit these tourism properties, is not the action one
would expect from someone who is for a solution to this 30 year thorny problem.
We hear much about Greek Cypriot properties that were vacated in the mid 74's
but very little is heard about the [Northern Cyprus] Turkish Cypriot losses.
Apart from areas like Varosha (which always has been EVKAF -owned, an
organisation formed in 1571 as a religious trust), the airport in Larnaka and
the Hilton Hotel which we are told are both built on original Turkish Land. We
are informed that many [Northern Cyprus] Turkish Cypriot property owners
visiting their old villages in the south have been mortified to see open tracts
of land where their homes used to be. The case for the Turkish Cypriot
[Northern Cyprus] is not accepted by the other side but they tend to overlook
the fact that even though the Turkish Cypriots [Northern Cyprus] numbered less
than the Greek Cypriots, the Turkish Cypriots [Northern Cyprus] had more of
their citizens proportionately involved in agriculture which gave them the edge
of land ownership.
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To go along with the Annan Plan with some modifications must
surely be the best method of satisfying both sides' [Northern and South Cyprus]
claims, assuming of course that the Greek Cypriots want a solution in the first
place. By the way the Government in the South is back-pedalling regarding the
fine tuning of both sides' claims, it becomes clear to see that there is no
incentive for the Greek Cypriots to formally accept the Turkish Cypriots
[Northern Cyprus] as equals. The dream of Enosis which is kept alive in the
minds of some South Cyprus citizens is a blatant affront to the Turkish Cypriot
[of Northern Cyprus] and British Nationals, especially as the Turkish Ottomans
ruled the island for over 300 years and ruled it with a firm but just hand,
even respecting non-Cypriots beliefs in freedom of religious preferences.
The property [apartments etc in Northern Cyprus] boom has taken people in the
north by surprise and it is clearly imperative that the upgrading and extension
of the infrastructures requires substantial investments [in Northern Cyprus]
which will come soon after any settlement. Land and property prices [such as
apartments, villas etc in Northern Cyprus], fuelled by the demand, have risen
dramatically with lands [in Northern Cyprus] in some areas showing increases
from £6,000 per donum three years ago to £55,000 per donum today. Land purchase
and villa construction are still way below European prices and further growth
is expected.
So where do we go from here?
The Turkish Cypriot's [of Northern Cyprus] position and the facts
leading up to their current status with no direct flights, no recognition apart
from Turkey, embargoes and no grants/loans from outside Cyprus (apart from
Turkey again) has resulted, via the media, in the TRNC's [Northern Cyprus]
position being understood more clearly throughout Europe and the USA. The TRNC
[Northern Cyprus] has never matched the Greek propaganda machine although the
current coverage in the UK press is explaining to the world exactly what the
situation is.
The British are still the main buyers for land and property [such as apartments
etc in Northern Cyprus] whether holiday or retirement usage and shows little
sign of abatement. Developers [of properties such as apartments etc] both from
outside and within [Northern] Cyprus are enjoying long awaited and well
deserved opportunities with investors from Britain, Europe, USA, Israel and
Turkey visiting the TRNC [Northern Cyprus] on a regular basis. Sensibly, the
Town Planning Department [Northern Cyprus] in Lefkosa is drafting new rules to
regulate the volume of new projects and the Environmental Department [of
Northern Cyprus] also controls these new developments.
The current position regarding the EU accepting the TRNC's [Northern Cyprus]
application is dependant on several factors such as:
There must be a change of attitude and policy by the Greek Cypriots towards the
Turkish Cypriots [of Northern Cyprus] and the recognition of the Turkish
Republic of Northern Cyprus [Northern Cyprus] as joint shareholders of Cyprus
as a whole, not just a minority community who are permitted to stay.
The acceptance of the TRNC [Northern Cyprus] as Co-owners of the island and
being eligible to its fair proportion of incoming aid monies and grants/loans.
The freedom of movement on the island for all Cypriots whether from the
Northern State or the South plus all foreign nationals and EU citizens. Until
these factors have been mutually agreed between both sides [Northern and South
Cyprus], there is little chance of success and the status quo remains in place
which is unfair and most unproductive especially for the Turkish Cypriots [of
Northern Cyprus].
Ian Smith
Next month: Details on new Planning Laws [of Northern Cyprus]
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