The authorities of the Turkish Republic of Northern Cyprus (TRNC) officially describe 2026 as the “year of implementation”. The TRNC government, together with Türkiye, has announced the launch of large-scale economic, infrastructure and tourism projects that will directly impact the North Cyprus real estate market and the region’s overall investment attractiveness.

Prime Minister Ünal Üstel confirmed that all previously announced initiatives are expected to move from planning to full implementation in 2026. For investors, this signals the beginning of a new growth cycle.

Tourism as the Main Driver of the Economy and Property Prices

According to the Tourism Development Master Plan for 2025–2034, 2026 will mark the first stage of a deep transformation of the tourism sector.

Key targets include:

  • up to 6 million tourists annually;

  • tourism revenues of 3 billion $ by the end of 2026 (approximately a 50% increase).

An international marketing campaign, Ada Kıbrıs, featuring actress Meryem Uzerli, has been launched to reposition Northern Cyprus on global markets and increase interest from Europe and the Middle East.

New Flights and Affordable Air Travel

In 2026, the government is focusing on improved accessibility:

  • AJet has launched flights from London (Stansted) to Ercan (via Türkiye), with ticket prices starting from 250 £;

  • a price cap of 6,000 TL has been introduced for Istanbul–Ercan flights.

This is particularly important for the diaspora, UK-based investors, and buyers focused on rental property in North Cyprus.

Hotels and Resort Projects: New Growth Hotspots

Hotel infrastructure continues to expand rapidly:

  • construction of the F-Blocks at Grand Sapphire Resort (İskele) will be completed in June 2026;

  • new luxury hotels are planned in Famagusta;

  • TRNC aims to compete with South Cyprus, where more than 10 new hotels are also expected to open in 2026.

The real estate market benefits from rising demand for apartments in resort-style residential complexes.

Economy and Digitalisation: Transparency and New Regulations

Reforms are based on the Fourth Five-Year Development Plan (2025–2029).

Key indicators for 2026:

  • GDP growth of around 5%;

  • inflation expected to decline to 25%;

  • budget deficit projected at 6.59% of GDP.

Türkiye has allocated 160 million TL in grants to support tourism, business and agriculture.

Key reforms in 2026 include:

  • full implementation of electronic invoicing (E-Fatura);

  • legislation regulating crypto assets and online gaming;

  • introduction of a tax on short-term rentals (Airbnb);

  • digital stamp duty (E-Pul).

For the real estate sector, this means clearer and more transparent operating conditions.

Construction, Energy and the “Green Island” Concept

An active phase of the electricity cable project from Türkiye is expected in 2026, reducing dependence on diesel generation and positioning Northern Cyprus as a green energy hub.

Government subsidies for installing solar panels on private homes will also continue — a major advantage for property buyers.

Additional developments include:

  • completion of the social housing project in Güzelyurt;

  • tenders for the Mountain Road (Dağ Yolu) and alternative routes;

  • improved transport connectivity between regions.

Healthcare: New Hospitals

Healthcare infrastructure is also expanding:

  • active construction of a 320-bed hospital in Lefkoşa;

  • confirmed opening of new hospitals in Kyrenia and Güzelyurt in 2026.

This is an important factor for property buyers considering permanent residence.

Ecology and Quality of Life

From 1 January 2026, a full ban on plastic bags with a thickness of 15–50 microns will come into force under the “Change Your Bag, Change the World” initiative, supporting sustainable development and a higher quality of life.

What This Means for Property Investors

The year 2026 creates an ideal investment window:

  • growth in tourism and rental demand;

  • major infrastructure projects;

  • digitalisation and regulatory reforms;

  • rising interest from Europe and the UK.

Against this backdrop, North Cyprus real estate remains one of the most affordable and promising markets in the Mediterranean, with strong potential for capital growth and rental yields.