The Turkish president's comments came during a controversial visit to the north of the island, occupied by Turkey since 1974 and not recognised internationally.
Varosha, which used to be a tourist hotspot, has been fenced off and abandoned since Turkey invaded northern Cyprus after a Greek-inspired coup in 1974.
Erdogan made the announcement on Friday. The plan is for it to be functional by 2023, the centenary of the Turkish Republic.
Talks on future of island resume, but fundamental differences remain.
Turkey's Foreign Minister says he is willing to listen to fresh proposals to end the divide between the island's Greek and Turkish communities.
Two Turkish Cypriot journalists face charges in Turkey over criticism of Recep Tayyip Erdogan’s regime after their case fell through in Cyprus.
The best chance in generations to end the partition of Cyprus collapsed in acrimony early on Friday, throwing the prospect of any reunification
The Cyprus peace talks in Switzerland are the best chance at an agreement, the UN says.
By Nikos Christodoulides, Cyprus government spokesman The seemingly intractable Cyprus problem has been dubbed the ‘graveyard of diplomats’, an unforgiving label alluding to the failed attempts of the
Both Greece and Turkey have traded blows with talks set to continue over the divided island of Cyprus.
At the end of the reunification talks, our correspondent Sertaç Aktan spoke to the Turkish Cypriot leader Mustafa Akinci about his views on future progress.