The construction boom and environmental protection in Northern Cyprus as a consequence of the Annan Plan

Abstract

The Annan peace plan has led to a major construction boom in the Turkish Republic of Northern Cyprus (TRNC), in large part driven by speculative demand for real estate. A macroeconomic framework has been used to analyse the principal causes and impacts of the construction sector on the TRNC economy, particularly in terms of income and employment. Given that the TRNC possesses a unique and rare ecosystem in the Eastern Mediterranean, special attention is given to environmental impacts of the current construction boom, highlighting environmental costs and deficiencies in land zoning regulations. Environmental pollution as a result of rapid construction and unplanned urbanisation are also discussed and there is urgent need for rigorous environmental legislation, especially at local government level.