Economy
 


The prices on Cyprus properties for sale are significantly lower than in South Cyprus, but have a great growth potential. In the past year the price for the properties have at least doubled, and the price for the plots of land have near trebled in price. This trend will continue as more and more investors are seeking a property in Northern Cyprus as it opens its doors and is more accessible to tourists worldwide. It is estimated that house prices will double or even treble in the next 3 years until reaching parity with equivalent property in the south.

  • Politics aside, what makes Northern Cyprus a more attractive place to live than its Southern part? Undeniably, it is a matter of choice and expectations, but here are the main differences, that make this part of the island much more attractive:
    The property in North Cyprus is a hot spot for British and other Western European buyers at the moment. The property for sale in Northern Cyprus is significantly cheaper than in Southern Cyprus. For a villa in the South Cyprus you would be looking to pay between 250,000 - 350,000, for a similar villa in the North you would be paying between 75,000 - 150,000. For a two bedroom apartment in Southern Cyprus, you would be expected to pay around 100,000 - 150,000, whilst in Northern Cyprus it would cost you around 45,000 - 80,000. With South Cyprus joining the EU, the prices on property are rising, offering less and less for your money in the south.

    The foreign owners of the property in Southern Cyprus are not allowed to let their properties, according to the current law regulations. There is no such restriction on letting the property in Northern Cyprus.

  • During the last few years the Turkish Republic of Northern Cyprus has become a very important offshore business centre as a result of the growing demand of the foreign businessmen for new offshore jurisdictions to use as a base for their business activities. There are more than 25 offshore banks on the island and the Government encourages the formation of such banks by foreign investors by offering various incentives. Besides the offshore banks, there is a wide range of banks in Northern Cyprus, who would provide services to satisfy various business needs. Bank accounts could be held in Sterling, Euros, Turkish Lira and US Dollars.

Development activities in Northern Cyprus are carried out according to economic planning in accordance with the constitution. In Northern Cyprus, tourism plays a large role followed by tertiary studies, industry, agriculture, transportation and health sector respectively. One of the most important steps of the structural change to spur the economic development in Northern Cyprus is privatisation of state owned industries.

GROWTH RATE OF GROSS NATIONAL PRODUCT (GNP)

The annual average rate of growth realized as 3.6% during the period of 1977-2002. The GNP which was 3,810.5 million TL in 1977 rose to 9,133.1 million TL in 2002 at constant prices of 1977 which accounted for 1,418,703,263.6 million TL at current prices and 941.4 million at US dollar basis.

In 2002, Public Services sector has the highest share in GDP and this sector covers 16%. Trade - Tourism follow it with 15.7% and Transport-Communication with 12.7%.

The developments between 1997-2002 can be seen in the tables 1 and 2 at sectoral basis. 

Gross Domestic Product by Kind of Economy Activity

(At 1997 Producers' Prices)

(Million TL)
GDP GDP GDP GDP GDP GDP
Sectors

1997

(%)

1998

(%)

1999

(%)

  2000

(%)

2001

(%)

2002

(%)

1. Agriculture 601.0 7.6 636.2 7.6 822.0 9.1 713.5 7.9 824.4 9.7 985.3 10.9
1.1. Crop Production 261.4 3.3 309.3 3.7 431.5 4.8 336.5 3.7 442.4 5.2 577.5 6.4
1.2. Livestock Production 277.6 3.5 263.8 3.1 302.9 3.4 283.2 3.1 328.3 3.8 343.8 3.8
1.3. Forestry 14.9 0.2 15.7 0.2 40.0 0.4 42.9 0.5 12.7 0.2 15.7 0.2
1.4. Fishing 47.1 0.6 47.4 0.6 47.6 0.5 50.9 0.6 45.0 0.5 48.3 0.5
2. Industry 1,017.7 12.8 1,029.6 12.3 1,054.2 11.7 1,096.0 12.2 1,025.0 12.0 1,075.9 11.9
2.1. Quarrying 26.4 0.3 27.6 0.3 27.9 0.3 31.2 0.4 27.0 0.3 29.0 0.3
2.2. Manufacturing 841.1 10.6 842.9 10.1 853.3 9.5 884.0 9.8 822.8 9.6 869.6 9.6
2.3. Electricity-Water 150.2 1.9 159.1 1.9 173.0 1.9 180.0 2.0 175.2 2.1 177.3 2.0
3. Construction 647.5 8.1 694.6 8.3 708.6 7.8 841.4 9.3 669.6 7.8 776.0 8.6
4. Trade-Tourism 1,317.9 16.5 1,450.9 17.3 1,558.7 17.3 1,474.6 16.4 1,246.4 14.6 1,420.0 15.7
4.1. Wholesale and Retail Trade 1,076.2 13.5 1,201.4 14.3 1,280.9 14.2 1,186.4 13.2 991.8 11.6 1,110.5 12.3
4.2. Restaurants and Hotels 241.7 3.0 249.5 3.0 277.8 3.1 288.2 3.2 254.6 3.0 309.5 3.4
5. Transport-Communication 937.3 11.8 974.6 11.6 1,043.3 11.6 1,113.6 12.3 1,108.2 13.0 1,149.4 12.7
6. Financial Institutions 482.1 6.0 524.4 6.2 568.4 6.3 529.6 5.9 434.3 5.1 390.3 4.3
7. Ownership of Dwellings 428.7 5.4 440.6 5.3 451.7 5.0 461.7 5.1 475.8 5.6 485.1 5.3
8. Business and Personal                        
Services 655.7 8.2 679.2 8.1 784.0 8.7 700.0 7.8 800.1 9.4 807.0 8.9
9. Public Services 1,358.6 17.1 1,406.1 16.8 1,438.6 16.0 1,483.3 16.4 1,461.7 17.1 1,454.3 16.0
10. Import Duties 521.1 6.5 547.6 6.5 584.4 6.5 604.5 6.7 486.2 5.7 519.0 5.7
11. Gross Domestic Product                        
(In Purchasers' Values) 7,967.6 100.0 8,383.8 100.0 9,013.9 100.0 9,018.2 100.0 8,535.7 100.0 9,062.3 100.0
12. Net Factor Income                        
From Abroad 22.8 .. 84.3 1.0 76.9 0.9 19.7 0.2 10.2 0.1 70.8 0.8
13. Gross National Product 7,990.4 100.0 8,468.1 101.0 9,090.8 100.9 9,037.9 100.2 8,545.9 100.1 9,133.1 100.8
Source: State Planning Organization

Banking
Commercial banks in Northern Cyprus are of two kinds. There are banks which are branches of large organisations based in Turkey, and local banks. Many of these banks have correspondents in other countries. Transactions can be carried out in all leading currencies. The Central Bank of Northern Cyprus is responsible for the monetary, credit and exchange policy, and acts as banker to the government. Banking hours for the public: 8:30 a.m. - 2:00 p.m. in summer. On Mondays also open from 3:00 - 5:00 p.m.

Cost of Living
Compared with most countries in Western Europe, the cost of living in Northern Cyprus is low. Locally produced products or those produced in Turkey are generally cheaper than thier European counterparts. However, goods imported from Europe tend to tend to be higher in price than their country of origin. Very cheap are cigarettes and alchohol.

Currency / Exchange Rates
The legal tender of Northern Cyprus is the New Turkish Lira. As exchange rates change, daily to the visitior's advantage it is advisable not to buy large amounts of the currency before embarking on your holiday. Most shops will also be quite happy to accept major foreign currencies. 

Foreign Investment
Investing in Northern Cyprus` banks can be highly lucrative as interest rates on foreign currencies tend to be much higher than those in Europe. There are also an increasing number of off-shore banking opportunities opening up which visitors may be interested in looking into.

Produce & Product
Carobs, Carpet weaving, Hellim, Lefkara Embroidery and Lace, Nuts, Olives, Tobacco, Wicker basket weaving

 

 
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