Current and potential Fly to Let investors in Cyprus have been watching developments following talks between Turkey and Greece about reunifying the north and south which has raised an air of optimism.

The division in Cyprus began in 1974, when Turkish troops occupied its northern third, following a Greek Cypriot coup inspired by the military junta ruling Greece at the time. This led to the displacement of thousands of Cypriots and the establishment of a separate Turkish Cypriot political entity in the north.

In the aftermath, the internationally recognized state of the Republic of Cyprus claimed sovereignty over 97 percent of the island and all surrounding waters, with the UK controlling the remaining three percent.

Then, in 1983 the Turkish-held North declared itself the Turkish Republic of Northern Cyprus which caused an ongoing major rift between the two countries.
Greek Cypriot leader Demetris Christofias and Turkish Cypriot leader Mehmet Ali Talat met again recently to continue their discussions in the UN-controlled buffer zone near Nicosia’s disused airport, which divides the island.

A senior UN official described the meeting as ‘productive and fruitful,’ adding that the two leaders agreed to resume negotiations on power-sharing.

The launch of negotiations marked the first major push for peace since discussions had stalled in 2004 when Greek Cypriots rejected a Turkish Cypriot backed UN peace plan.

The aim of the fully-fledged negotiations is to find a mutually acceptable solution to the Cyprus problem and it’s believed that two recent factors have led to a greater motivation for an agreeable conclusion.

Firstly, Cyprus has been accepted into the EU and changed its currency at the beginning of 2008 to cement its inclusion. However, Turkey is still negotiating its route into EU membership and is aware that a number of member states have expressed their desire for a resolution to the Cyprus conflict before they will support Turkey’s application. This has prompted a more open stance to discussion from the Turkish Republic of Northern Cyprus.

The second factor that is bringing the two sides a step closer is the change of government in the southern part of the island. Earlier this year a general election took place in which AKEL leader Dimitris Christofias replaced the Democratic Party leader, Tassos Papadopoulos.

There have been some positive steps made already this year. In April, in the capital city of Nicosia, there was the opening of the symbolic crossing at Ledra Street - closed since violence flared between the Greek and Turkish Cypriot communities in 1964 – which was seen as a major confidence-building measure ahead of the talks.

In May 2008, Mr. Talat spoke of his hopes for Cyprus re-unification, enthusing that there had never been so much chance for solution. However, he added that the he expected the toughest issues during the unification talks to be land and property. “It is a very complex problem”, he said. “30 to 40 years have passed, the properties changed owners many times and both Greek Cypriots and Turkish Cypriots are very sensitive about this issue. Therefore it is a tough issue.”

Reunification may boost the Turkish Cypriot economy, which could bring huge investment to the northern part of the island and facilitate infrastructure improvements that would bring the North up to the standards of the South. The tourism industry would also take off and the property market would inevitably benefit.

With a new government in the south of the island and the north looking to encourage the acceptance of Turkey into the EU, there seems to be a momentum and desire by both sides to reach an agreement, which bodes well for the future of Cyprus.

* Research provided by The Move Channel

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