Abstract The energy losses in residential space heating constitute a large portion of the wasted energy. The excess energy consumed for heating of a house or a region is a good indicator to show the amount of energy wasted due to improper construction and poor insulation. Utilization of the average specific heat loss coefficient of the houses in a region would result in more realistic estimates for regional heating energy requirements rather than considering a pre-selected model house. In this study, a survey was conducted in the northern part of Cyprus prior to calculations. Regional average specific heat loss coefficient of Northern Cyprus was determined to be 852 W/°C. Using the degree-days method, climate zones and the distribution of dwellings, the annual heating energy needed for an average dwelling was calculated as 92,000 MJ/year. The annual residential heating energy requirement for Northern Cyprus was estimated as 2325 million MJ. It can be summarized that the use of proper wall and roof insulations together with double glazed polyvinyl chloride (PVC) windows would result in a 41.3% reduction in the residential heating energy requirement in the region. This corresponds to a 30 million US dollar saving for the economy in a year.