Cyprus Reunification - How the Reunification of Cyprus Will Help Overseas Investment
What the Revived Reunification Talks Mean for Buying Investment Property in North Cyprus
Cyprus has been divided since 1974, when a Greek backed military coup was met with Turkish military intervention. Turkey took control of the northern third of the island and declared it as the Turkish Republic of Northern Cyprus in 1983, a de facto republic that was solely recognised by Ankara itself. This move led to North Cyprus being excluded from international trade and transport links, a fact that has repressed land and property values in North Cyprus by around a third and a half compared to those of other properties in Cyprus. What this means is that properties in North Cyprus are far less expensive than other properties abroad, but for those searching for the ideal location for buying investment property North Cyprus has greater potential than any other property market in Europe, and that is largely thanks to the reunification talks that are now underway between the Turkish Cypriot Mehmet Ali Talat and his Greek Cypriot counterpart, President Demetris Christofias.
Talat and Christofias Seek Reunion between Turkish and Greek Cypriots
The last attempt at reunification between North Cyprus and the rest of the island came in 2004 under the UN brokered Annan plan. Whilst it may not be entirely accurate to locate the success of the current round of negotiations in the Annan plan, it certainly marks the point at which the number of people buying investment property in North Cyprus started to push up property prices. Since Christofias' election in February 2008 property prices have continued to increase and North Cyprus has now come firmly to the fore of discussions on overseas investment in property, as evidenced in recent articles in the national press. In contrast to his predecessor, the nationalist and anti-reunification leader Tassos Papadopoulos, Christofias ran for office on his progressive, pro reunification stance. Both he and Talat share a left wing ideology and appear to be friends, and in fact met more times between February and the official start of negotiations in September than their predecessors did in their entire careers. This new political will in leaders on both sides of Cyprus's Green Line is complimented by optimism and support from an international community which had fallen pessimistic during the five year incumbent Papadopoulos's presidency.
The Reunification of Cyprus and Properties Abroad
Over recent months both Christofias and Talat have sounded their commitment to the reunification of Cyprus; their weekly meetings, the first of which took place following diplomatic negotiations on 3rd September 2008, are designed as a means by which to resolve any outstanding issues, and as a forum for the discussion of countered views. So Cyprus reunification supporters are optimistic that a compromise is reachable, and Talat gave them good cause for hope when he announced that he wanted the Cyprus problem resolved by the end of 2008. This is good news for Cyprus properties and those looking at Cyprus for overseas investment; with property prices being credibly linked to Cyprus reunification talks during the Annan Plan Referendum, in 2004, it is logically expected that investment properties in Cyprus could well see accelerated growth during another reunification referendum, and will indeed emerge very strongly from successful reunification efforts. Property in Cyprus, then, is tied closely to the reunification of Cyprus, and shrewd investors will be looking closely at negotiations between Talat and Christofias when it comes to property investments on the island.
