North Cyprus has become a prime location for property investors looking to generate strong rental returns. With a growing tourism industry, affordable property prices, and high rental demand, investors can expect attractive yields from both short-term and long-term rentals. In this guide, we explore the expected Return on Investment (ROI), the profitability of Airbnb rentals, and the potential of long-term leasing in North Cyprus.

1. Understanding Rental Yields in North Cyprus

Rental yield is the percentage of rental income generated from a property in relation to its purchase price. In North Cyprus, rental yields range from 5% to 12%, depending on the location, property type, and rental strategy.

2. Short-Term Rentals (Airbnb & Holiday Lettings)

With a thriving tourism industry, short-term rentals offer some of the highest rental returns in North Cyprus. Many investors prefer platforms like Airbnb, Booking.com, and Vrbo to capitalize on high demand during peak tourist seasons.

Best Locations for Short-Term Rentals

• Kyrenia (Girne): The most popular tourist destination with high Airbnb demand.
• Iskele (Long Beach): A rapidly growing area with beachfront properties ideal for vacation rentals.
• Famagusta: Home to major universities, attracting short-term stays from visiting faculty and students.

Expected ROI for Short-Term Rentals

• 1-Bedroom Apartment: £40-£80 per night (annual yield of 8%-12%)
• 2-Bedroom Apartment: £60-£120 per night (annual yield of 7%-10%)
• Luxury Villa: £150-£300 per night (annual yield of 10%-12%)

3. Long-Term Rentals: Stable Income for Investors

For investors looking for stable and hassle-free rental income, long-term leasing is an excellent option. North Cyprus has a growing expatriate community, university students, and professionals seeking long-term accommodation.

Best Locations for Long-Term Rentals

• Famagusta: A student and academic hub with consistent rental demand.
• Kyrenia: Popular with expats and retirees looking for year-round residences.
• Alsancak & Lapta: Ideal for families and professionals working in Kyrenia.

Expected ROI for Long-Term Rentals

• 1-Bedroom Apartment: £350-£500 per month (annual yield of 5%-7%)
• 2-Bedroom Apartment: £500-£800 per month (annual yield of 6%-8%)
• Luxury Villa: £1,500-£3,000 per month (annual yield of 8%-10%)

4. Factors Affecting Rental Yields

Several factors influence rental yields in North Cyprus:

• Location: Proximity to beaches, universities, and city centers increases rental demand.
• Property Type: New developments with modern amenities attract higher rents.
• Tourist Seasons: High-season rentals (May-October) generate maximum returns for short-term lets.
• Market Trends: Growing foreign investment continues to drive rental demand and property appreciation.

5. How to Maximize Rental Income

• Invest in High-Demand Areas: Properties near beaches, universities, and city centers yield higher returns.
• Offer Fully Furnished Rentals: Furnished properties command 20-30% higher rent than unfurnished ones.
• Utilize Property Management Services: A local management company can handle bookings, maintenance, and guest services.
• Target Digital Nomads & Expats: Offering high-speed internet and workspace facilities can attract long-term tenants.

Conclusion

North Cyprus presents excellent rental income opportunities, whether through short-term holiday lettings or long-term leases. With high rental demand, affordable entry costs, and attractive yields, property investors can expect strong ROI in 2025 and beyond.

Are you considering investing in rental properties in North Cyprus? Contact TrustPoint today for expert guidance and top property investment opportunities!