Falling resale and rental prices in Northern Cyprus: truth and myths

"Lower secondary market prices = lower rents" — logical?

• General logic linking purchase and rental prices
• High rental demand
• Loan conditions and payments
• Inflation and rising utilities
• Limited supply and investment motivation

General logic linking purchase and rental prices

At first glance, it may seem that falling secondary property prices in Northern Cyprus should automatically lead to lower rents. In practice, this is not always the case. The rental market may react slowly or, in some cases, not at all.

Additionally, lower prices may motivate tenants to buy property, which also affects rental demand.

High rental demand

Rental demand remains stable for several reasons:

• Not everyone can afford to buy even at reduced prices, especially students, who are numerous in Northern Cyprus.
• Short-term rentals are in demand among tourists and seasonal workers.

Loan conditions and payments

Secondary properties are most often purchased with full payment or through loans with a high down payment — around 50%. This limits the flow of buyers and keeps rentals in demand.

Inflation and rising utilities

Rising property maintenance and utility costs force owners to maintain or increase rental rates. Even with lower purchase prices, this can prevent rent from decreasing.

Limited supply and investment motivation

In some areas, such as near British schools, rental housing supply is limited. Owners see stable demand and treat renting as a way to preserve income, so they are not eager to lower rates.

The rental market in Northern Cyprus remains stable even if secondary property prices fall.