This study aims to reveal the thoughts, behaviours, fears and expectations of investors in Northern Cyprus when making their financial investments in real estate. Ethnographic interviews were conducted with investors in order to better understand their views on the financial instruments of the northern part of the island. Contrary to popular belief, the financial literacy of investors on the issue of Northern Cyprus is at an advanced level. People who have already made financial investments in real estate or land or commercial property in Northern Cyprus who took part in the study explained in detail the reasons for their decisions. It is clear that the reason for the shift in investment in real estate in Northern Cyprus has a number of global reasons: this is due to macroeconomic instability and confidence, infringement of the rights of Russians living in European countries, migration from Ukraine and Russia, investing in real estate in a warm country on the seashore. After the pandemic, many, having tried a new online work scheme, decided to take advantage of the opportunity to work remotely with living in a warm country on the seashore.
It has been observed that real estate investment in Northern Cyprus is carried out with the same motives as in other Mediterranean countries, but the financial opportunities here are much greater. Most of the objects can be bought much cheaper than in other countries of the Mediterranean region. The non-recognition of the country has also recently become more of a plus than a minus.
It is alleged that financial investments in real estate in Northern Cyprus are aimed at transferring finances into foreign currency (real estate prices in Northern Cyprus are set in pounds), the possibility of a quick and profitable resale or rental, opening accounts in Turkish banks.
The level of financial literacy of foreign investors is associated with the development of self-protection and awareness in economic life by understanding, assessing and making decisions regarding financial risks and uncertainties. Thus, the increase in prices in Europe, the political instability in Russia and Eastern Europe and Turkey makes people from different countries and make quick decisions in favor of investing in real estate in Northern Cyprus.
It is emphasized that research in the field of financial literacy of investors from different countries is at a high level. Alliance-Estate specialists conducted detailed interviews with investors. Our research shows that investors are at an advanced level of financial literacy. Northern Cyprus for many investors remains an open country outside of politics, with the possibility of permanent residence and obtaining a residence permit, an excellent level of European education, starting your own business,…
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