The North Cyprus Property Boom and Reunification of the Island of Cyprus
After the fifth round of preliminary discussions concluded yesterday, the partitioned island of North Cyprus – divided for 34 years, and split between the Republic of Cyprus and the Turkish Republic of North Cyprus (TRNC) – looks set, finally, for a triumphant political reunification.The Greek Cypriot head of state, Demetris Christofias met with TRNC president Mehmet Ali Talat as the first pairing in post-partition Cypriot history to agree on the need for reunification, and prospects are very hopeful indeed after this final preliminary meeting set the 11th of September as the day when they would talk seriously about how to implement reunification reform.It marks a substantial step, after constant pledges from Talat and Christofias on the need for reunification have been made since the latter took office at the start of the year. Now though, Cypriots and Europeans alike will be happy to see the 11 of September as a day when words are turned quite positively into deeds. Negotiations will be tough. Certainly, the cultural and political division on the island itself, and the previous reluctance of Turkey to cede power over North Cyprus, led in the past to contrasting fortunes for the island; generally speaking, the sanctions placed on the TRNC of North Cyprus made it hard to grow and flourish.But, in spite of that, it has seen in recent years a boom in tourism, and a growth in investment so large that people are terming it the North Cyprus property boom; the economy of the island has grown by close to 4% in recent years, and not with a discrepancy across the territories, because of the North Cyprus property boom and its ability to triumph in the face of adversity.And now reunification is a genuine goal. There will be thorny issues for the two leaders to hammer out on September 11th, but the commitment to brotherhood from the two heads of state should override any constitutional problems. If it does – and it looks likely that it will – then North Cyprus is set for a renaissance; left in the political cold since Turkey’s invasion in 1974, but blossoming even so, it can only go from strength to strength if it is afforded the benefits of the south of the island, which it can use to underpin its own achievements. Unification looks set, and so that combination of strengths is on the way. With it, the TRNC of North Cyprus will develop and grow, and the North Cyprus property boom will be at the forefront of that, with investors already moving into the area.And with economists speculating that the TRNC, once part of Cyprus, would take the Euro, reunification could not only spell long term reform and economic growth, but also a trigger rise; it is expected that Ankara, in anticipation of a currency switch, would fix the Turkish lire at a high rate, so that it may coincide with the Euro. If it does, property in North Cyprus will almost automatically receive a high valuation in the european community.