Cyprus Property | Prime Development Opportunity in Famagusta

Cyprus Property | Prime Development Opportunity in FamagustaPrime Development Opportunity in Famagusta could Help Island’s Property Prices Recover

Famagusta has long been a popular tourist destination. Its vibrant nightlife, enviable sandy beaches and beautiful ancient architecture have meant that visitor numbers have remained high, even throughout periods of instability throughout the island. Coupled with Famagusta’s fascinating political history, the city’s unique appeal among both tourists and expats has rescued the area from Cyprus’ seemingly never-ending property price slump.

A golden opportunity for commercial investors

An increased investment by officials in the area has led to a number of attractive prospects for investors. One of largest investment opportunities currently available in North Cyprus is a significant and prominent piece of land in Iskele, Famagusta. The land, which has a total area of 75 donums (100,350 square metres), is advertised for sale with north Cyprus property agents, North Cove, for a cool £8 million (which currently converts to €9,861,520). Situated along a prime stretch of beach, the land sits in between the popular regions of Famagusta and Barfa and enjoys uninterrupted views out to the Mediterranean Sea. This rare opportunity to purchase such a large plot of land comes with excellent investment prospects; the surrounding area is currently fairly under-developed, yet is tipped to become more popular due to the addition of several nearby attractions. This offers investors an excellent opportunity to pile their capital into an area which is still at the beginning stages of its development. To the west of the land sits a holiday complex, and immediately to the east another plot of undeveloped land sits directly between it and a modern residential area.

Could the land be home to a new hotel complex?

Situated in a popular and upcoming holiday area, the land is being advertised as an ideal location for building a large beach-front holiday complex. North Cove states that the land, which has planning permission, would be able to house a luxury complex complete with a hotel, villas, apartments and various water activities. It is expected that property prices in the Iskele area will continue to remain stable, thanks to a large-scale upmarket Marina development currently being built in the Karpaz region, which is a short drive from the resort.

An end to the property price slump?

The cost of property in the whole of Cyprus has continued to fall for several years, and this was still the case at the end of 2012. According to the RICS Cyprus Property Price Index, the average cost of a house fell by 1.1 percent and the average cost of an apartment in Cyprus fell by 0.4 percent in the third quarter of last year. However, many experts now believe that prices have hit rock bottom and that a recovery could soon be on the cards. Famagusta, which is seeing increased commercial development and investment in tourism, is already defying the downward trend in the residential sector; in the penultimate quarter of 2012, house prices remained steady despite falls in every other region except Paphos.

On the commercial front, the market has been particularly badly hit; buyers have found it increasingly difficult to source commercial real estate finance, and many banks have stopped lending to foreign buyers or those with small amounts of capital. Buyers have found that commercial property insurance has, as a result, been harder to come by as insurance companies weigh up the risk involved in doing business in the country’s volatile market. Without essential services such as finance and insurance, the market has seen a significant fall in the number of potential buyers willing to invest in the country’s commercial sector. Those investors that are in a position to buy continue to have their pick from cut-price land and commercial property; throughout the whole of Cyprus, the cost of commercial property fell by an average of 7.1 percent in quarter three of last year. However, the light could be shining at the end of the tunnel; the stretch of land between Famagusta and Barfa is expected to increase in value due to the imminent completion of several large-scale developments, such as the Marina complex being built in the Karpaz region.

Leading the way for the Cyprus property market

Throughout Cyprus’ tough real estate downturn, Famagusta has frequently been credited as a leader in terms of turning the market around. In November 2012, it was revealed that the region recorded an increase of 48 percent in overseas property sales; sales to foreign buyers reached 34 compared with just 23 from the same period the previous year. The sale of this large plot of land is significant for both land and property prices in the Famagusta area. It is expected that the possible arrival of this holiday complex, along with other planned leisure developments, would help to bring increased tourism to the local area. In turn, it is hoped that a surge in tourism will help to lift Cyprus from its residential and commercial property price slump, returning the country to property growth once again.

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