The property market in North Cyprus is undergoing serious changes at the moment, with the currently low property prices rising - and looking set to continue rising - at an unprecedented rate. In addition, a new type of property development is beginning to appear in the north side of the island - namely, upmarket and luxury apartments - that are clearly designed for people wanting to buy investment properties in this emerging market.

The reason for this change is, simply speaking, the reunification talks between Turkish Cypriot and Greek Cypriot delegates that are now striding ahead. International optimism regarding, and support for, a successful resolution - which have snowballed since Demetris Christofias' election victory this February - is heartening evidence that, after years of hampered talks and deliberate stalling, there is now a genuine and tangible attempt to restore the divided island.

Each week Christofias and the Turkish Cypriot Mehmet Ali Talat are meeting to discuss the exactitudes and workings of a blueprint for reunification. This week, Turkish Cypriot delegates outlined the importance of addressing the historical chronology of the Cyprus problem for the current set of talks to be a success, according to the Cyprus Observer's website.

'After this point, both sides should negotiate with full capacity and complete responsibility and, ultimately, introduce an agreement which will be submitted to approval of two peoples,' the Turkish Cypriot diplomats were quoted as saying.

Talat and Christofias, during their weekly talk, were discussing the issue of power sharing in a reunified state, and Greek Cypriot President Christofias caused somewhat of a stir by announcing that the Greek Cypriot side had granted a concession to the Turkish Cypriot side by accepting the notion of a bizonal federation that was devised by President Makarios in 1977.

Christofias rejected the possibility of forming a new state in the north Cyprus through 'virgin birth' and also rejected the possibility of a confederation. The only possibility, Christofias maintains, is a 'federal solution...a partnership of the two communities.'

Both he and his North Cypriot counterpart, Mehmet Ali Talat, are left-wingers who have made it clear that they desire to bring reunification to the island. Seeing them at joint social events, and the fact that they met five times before the historical September 3rd meetings began, highlights how different North-South relations are under these leaders.

Speaking after he addressed the issue of confederation between North Cyprus and South Cyprus, Christofias addressed his counterpart as 'my comrade and friend Mehmet-Ali' before adding that 'the time has come for us to take joint action and to respond to the call of history, to realize the vision of a reunified homeland.'

The new political will that is epitomised by Christofias and Talat is already causing property prices in North Cyprus - where prices are far lower than they are in the South - to shift upwards. With Turkey's EU membership talks restarting next year, it can be expected that Ankara will be keen to be seen to be assisting the talks, which is another reason for being optimistic about the immediate future of this ancient, idyllic island.