North Cyprus Properties Flourish Thanks to Revived Reunification Talks

North Cyprus has been divided from the rest of the island since 1974, and property prices in Northern Cyprus have not benefited to the same extent from the property boom which followed the Republic's ascension into the EU. Property in the Turkish controlled north of Cyprus is, however, now gaining in value thanks to the new impetuous in reunification that has been present since the election of Demetris Christofias as leader of the Greek Cypriot side of the island this February.

Christofias, who, like his Turkish Cypriot counterpart Mehmet Ali Talat, is a left winger and a politician who is all for reunification, was voted in on his progressive stance to the Cyprus problem, and in the first couple of months of his leadership the two leaders met five times before starting official reunification talks, which are now taking place - under the brokerage of the UN - each week until a workable plan for a successfully reunified state can be achieved.

The optimism in this round of reunification talks - which many people consider to be the best, and maybe last chance at reunification - has been bolstered by international diplomatic support, from the UN, the EU and this week, from the Council of Europe's Parliamentary Assembly, which this week responded to speeches from both leaders with warm approval.

After decades of mistrust - nowhere evident more than in the hostile words and entrenched diplomatic positions of Christofias's predecessor, the five year incumbent Tassos Papadopoulos and the Turkish Cypriot Rauf Denktash - the two leaders are now striking out toward a mutually agreed future for the island of Cyprus.

The Turkish controlled North of the island is undeniably isolated from international trade and international flight routes that have secured the Republic of Cyprus as one of the Mediterranean's most popular tourist destinations. For these reasons property prices are normally just a fraction of what they are in the Republic - around a half and a third as much on average - and also comparably far lower than those in other countries where property has been popular as both second homes and as an investment opportunity.

However, with holiday makers now able to fly into the Republic of Cyprus and drive across the border property prices have already begun to appreciate in the north, where the natural beauty and untroubled scenery posses an appeal that is simply unmatched south of the Green Line. With overall prices far lower in the North, and the warmest sea temperatures in the Mediterranean lapping against its shoreline, the Turkish controlled portion of the island is a fantastic holiday destination, and visitor numbers are increasing year on year.

With reunification will come a huge jump in house prices, and the positive attitude that both Mehmet Ali Talat and Demetris Christofias have brought to this new round of reunification talks has led to a number of early bird investors and developers firmly focusing their attention on North Cyprus. Already GDP per capita has shot up in North Cyprus, thanks to various factors, and this has had an immediate effect on property prices. With properties in Northern Cyprus bought and sold in sterling, the market is doubly attractive for UK investors, as not only are prices far lower than in other countries where investment properties are often considered, but also the investor does not lose out through the unflattering current exchange rate between the Euro and the pound.