Abstract

After 2005, construction sector in Northern Cyprus proved its potential of being locomotive in the economy. Increasing expectations to the solution of Cyprus problem, the positive reflections of the Annan Plan and the conjectural abundance of liquidity in the world caused the construction sector to play the leading role in the economy of Northern Cyprus. However, these conditions have been reversed in a negative way today. Furthermore, internal problems such as high production costs, absence of development plan, availability of unregistered contractors, weak institutional and financial structure of contractors, absence of country physical plan and absence of legal system protecting property owners especially foreigners combined with uncontrollable external factors create negative impact on the sector’s productivity and hence the competitiveness of the construction sector and the economy as a whole.

Key words: Overview, construction sector, strengths, weaknesses, opportunities, and threats (SWOT), Northern Cyprus.