Factors Contributing to High Rental Yield

Why is renting an apartment in Northern Cyprus more profitable than staying in hotels?

• Availability of family hotels
• Developed infrastructure of residential complexes
• Lack of cheap tour packages
• Additional demand from property buyers
• Independent tourism
• Impact of external instability on demand

Availability of family hotels

There are almost no 3–4-star hotels in Northern Cyprus at reasonable prices. The main options are 5-star casino hotels operating on an “all-inclusive” basis, where accommodation costs €200–500 per night. These hotels are primarily aimed at gamblers, not families.

For rentals, this means families are looking for alternatives — apartments in residential complexes, where 3–6 people can stay for half the price of a hotel room.

Developed infrastructure of residential complexes

Due to the lack of tourist infrastructure, developers build full-fledged residential complexes with pools, spas, hammams, gyms, restaurants, shops, and playgrounds.

This allows tourists to enjoy all the amenities without overpaying for a hotel.

Lack of cheap tour packages

There are no “last-minute” tours to Northern Cyprus. Tourists book accommodation independently, reducing competition from hotels and increasing the demand for apartment rentals.

Additional demand from property buyers

Some tourists visit to explore the real estate market before buying. Naturally, they choose apartments in the same complexes where they are considering investments.

Independent tourism

Northern Cyprus is not about “all-inclusive.” Most tourists rent cars and explore the island independently, choosing apartments instead of hotels.

Impact of external instability on demand

External shocks and instability in the CIS, Europe, and the Middle East stimulate additional rental demand. Northern Cyprus is a visa-free country, allowing people to relocate quickly and plan their next destination easily.