Northern Cyprus’ economic outlook is promising

Akacan Holding, one of Northern Cyprus’s leading companies, draws attention especially with its investments in residential development. With a global management approach, Akacan Holding delivers the best service to its customers at international standards and continues its investments abroad. We met with Bulut Akacan, Chairman of Akacan Holding, to learn more about their investments and the economy of Northern Cyprus—he answered our questions candidly.

How did the pandemic period affect the economy of Northern Cyprus?

The first phase of the pandemic had very negative effects on the island’s economy, because Northern Cyprus has an economy shaped around tourism and education. Unfortunately, as the island closed, both sectors were significantly impacted. However, after the pandemic ended, we faced an unexpected surge in growth—we could not keep up with demand. During the pandemic, people adapted to remote work and learned to live with it.

This benefited warm‑climate places like Cyprus the most. People working remotely in Europe or Türkiye began living in Northern Cyprus while continuing their work. They enjoy a clean-air, pleasant lifestyle while staying on top of their jobs.

Another advantage is that Southern Cyprus is an EU member: by living in Northern Cyprus and crossing to Southern Cyprus, people can reach any EU country very easily. Travel across EU countries is already free through Southern Cyprus.

When you compare housing prices in Southern Cyprus and Northern Cyprus, is there a big difference?

Today, when you compare housing prices in Southern Cyprus and Northern Cyprus, there is at least a tenfold difference. A home you can buy for 200,000 euros in Northern Cyprus can cost 2,000,000 euros in Southern Cyprus. Unfortunately, the gap is very large.

However, if a solution or agreement on the island becomes possible, housing prices in Northern Cyprus could rise to that level. We are receiving serious demand from Germans, Russians, citizens of Scandinavian countries, and from Türkiye—people who see this opportunity.

At one time, some construction firms in Northern Cyprus sold the same home to multiple people. Do such issues still exist?

Unfortunately, between 2003–2004, small construction companies emerged, but they all disappeared. As Akacan Holding, we have been operating in the construction sector since 1988. To date, we have delivered 6,000 housing units in Northern Cyprus.

Today we have our own university and two hotel investments. We have represented Arçelik on the island for 30 years. In short, we are a holding company that has proven itself, invested, and continues to invest.

When you buy a home in Northern Cyprus, does the state grant residency or citizenship?

The state grants residency to all home buyers. At the moment, it does not grant citizenship. When issues with the south are resolved, it will grant citizenship as well.

Do you see a possibility of a compromise in the talks between Northern Cyprus and Southern Cyprus?

Currently, talks between the two sides have reached a very positive point. For years, the Varosha (Maraş) issue had been discussed and remained closed; opening it by the instructions of President Recep Tayyip Erdoğan brought the talks to a very good point.

Before 1974, Varosha was one of the world’s most important holiday destinations—there were even homes of the British Royal Family there. Most property owners in Varosha belong to the most established families of Southern Cyprus, and they have pressured the Southern Cyprus administration for a long time.

In exchange for resolving Varosha, they proposed allowing direct flights to Northern Cyprus, stopping complaints against Türkiye, making Ercan Airport an international airport, and opening Northern Cyprus ports internationally. If such an agreement is reached, Northern Cyprus is effectively recognized, and with recognition, I believe everything—especially the economy—will develop.

In the first stage, housing prices could approach those in Southern Cyprus. Kyrenia has an unmatched geography: mountains behind, the city on a flat area, and the sea—Kyrenia is the only place where these three features meet together. In recent years Kyrenia has developed significantly, with excellent hotels—better than Antalya. There are also very strong developments in education.

Has the state been able to make investments and environmental improvements in Northern Cyprus?

On this topic, the President has taken very big steps and made major investments in Northern Cyprus. A new airport is being built. Modern roads and highways were prioritized and many have been completed.

Also, the number of municipalities will be reduced—from 28 to 18—so municipalities can be stronger and more service-oriented. We will start seeing municipal services in Northern Cyprus similar to those in Türkiye.

Another critical issue is bringing clean water to Northern Cyprus. Work is underway to use the water coming to the island in agriculture. Thus, agriculture will also take an important place in the economy in the coming period. With these investments, I can say that Northern Cyprus’ economic outlook is promising.

Can you share how foreign interest in buying property is developing?

Today, even finding a home to buy in Northern Cyprus has started to become a problem. Demand is far above expectations.

You had also been a parliamentary candidate in Northern Cyprus. Do you continue in politics?

Yes, I wanted to enter politics to serve, but unfortunately politics is not the business of businessmen. As Akacan Holding, we have 15 villa projects in Marbella, Spain. We also have investments in London, Malta and Türkiye.

Entering politics in Northern Cyprus causes my work in other countries to be disrupted. Our efforts to become an international company slowed down a bit at that time. I left politics and refocused on my business.

For example, most recently we launched a crypto exchange in Türkiye. A legal regulation is coming in this area, and we are ready for all legal requirements.

As an investor on the island, what are your expectations from the state?

We have only one expectation: that the state does not put obstacles in front of us. We do not ask for financial support. Our only request is the removal of bureaucratic barriers. Bureaucracy is the biggest problem in Northern Cyprus.

Northern Cyprus has great geography and educated, qualified colleagues—our only problem is the obstacles created by the state. I believe Northern Cyprus should be governed with a presidential system. It would contribute greatly to the island’s development.

In which regions on the island do you develop projects as Akacan Holding?

We are primarily in the Kyrenia region, and also in Lapta and Esentepe. We have villa projects, a mall and residential projects in those areas. Currently, we are a leading company in residential projects in Northern Cyprus.

To date, we have delivered 6,000 homes, and 1,000 are under construction. We have never been an ordinary contractor. With our Cruise project, we delivered Cyprus’s first—and the world’s 4th—balcony pool concept. In Kyrenia, we always made it a principle to develop projects that add value to the region’s most valuable areas.

You mentioned that you will soon develop a project in harmony with nature. Could you share the details?

In Kyrenia, from the Beşparmak mountains down to the coastline, we want to establish a new city that is compatible with the environment. We have a project that includes wooden houses, a life intertwined with nature, and a marina.

With this project, we will clearly demonstrate that a balance between humans and nature can be achieved. It is not only a human-focused project, but also one that brings a project with biodiversity to life.