Until recently, available Turkish Cypriot properties, including high-value commercial plots, were not publicly announced but allocated behind closed doors by the Turkish Cypriot Properties Management Service. Those with the right connections, party affiliations or influence could secure Turkish Cypriot properties at extremely low rents.
The new allocation procedure, introduced by the Ministry of Interior a year ago, links leasing decisions to documented and measurable criteria. At the same time, it reduces bureaucracy, as all procedures are now carried out electronically, significantly shortening the time required to process applications. In essence, the new system aims to ensure a fairer and more targeted allocation of Turkish Cypriot properties, taking into account the personal and socio-economic circumstances of applicants.
The most significant change introduced by the new legislative framework is that available Turkish Cypriot properties are now offered for lease through public announcements and open procedures. The properties are published every three months on the website of the Turkish Cypriot Properties Management Service, a measure considered one of the most important steps towards strengthening transparency.
Since the introduction of this practice, four publications have been made: in June 2025, October 2025, January 2026 and April 2026.
Across these four phases, a total of 285 Turkish Cypriot properties were announced for lease nationwide as follows:
37 houses following renovation, with 834 applications submitted during the first three publications.
35 commercial premises, with 260 applications submitted during the first three publications.
36 open spaces, with 173 applications submitted during the first three publications.
177 agricultural plots, with 39 applications submitted during the first three publications.
Since 2 April 2026, a new process has been under way for the leasing of 173 Turkish Cypriot properties, including five houses, two open spaces or livestock facilities and 166 agricultural plots. According to competent officials, interest among refugees has been particularly strong. For example, more than 744 applications were submitted and evaluated nationwide following the October 2025 publication.
End to extremely low rents
Reforming rental pricing is a central pillar of the modernisation of the Turkish Cypriot Properties Management Service. The aim is to correct long-standing distortions whereby Turkish Cypriot properties were leased for decades at extremely low rents.
Despite the management of properties valued at more than €7.5 billion, the Service previously generated only €5 million annually in rental income.
Officials from the Ministry of Interior stressed that the goal is not to pressure the business community or make businesses financially unsustainable. For this reason, rent adjustments are being implemented gradually through staged increases over a seven-year period, usually in two or three phases, allowing tenants sufficient time to adapt to the new conditions.
Examples of rent adjustments include:
Office in Limassol: monthly rent increased from €18 to €147.
Concrete company premises: rent increased from €7 per month to €1,181 through gradual adjustments.
Kiosk in Larnaca: monthly rent increased from €17 to €510.
Pottery workshop in Larnaca: rent increased from €5 per month to €360.
Widespread irregularities uncovered
Mismanagement and exploitation of Turkish Cypriot properties became entrenched over time due to inactivity by the responsible state authorities.
All contracts concerning the use of Turkish Cypriot properties are now under strict review. Where violations are identified following on-site inspections, the authorities proceed with all necessary legal measures to recover the properties and reallocate them to eligible beneficiaries through transparent procedures.
Inspections currently under way have revealed the extent of longstanding irregularities and mismanagement. To date, more than 600 lease contracts with serious violations have been identified, of which 300 have already been terminated due to non-compliance.
Results of the inspections
A total of 512 violations were identified in commercial premises. Of 4,032 lease contracts for commercial premises and open spaces examined, breaches of essential terms were identified in 512 contracts. For 280 contracts where there was no compliance, the Service terminated the agreements. So far, 79 premises have been recovered, while legal action has been taken in other cases.
A total of 31 contract violations were identified involving municipalities. Out of 275 contracts examined, serious breaches were found in 31 cases. Five contracts were terminated and warning letters were issued in 13 cases requesting compliance.
A total of 47 violations were identified in contracts involving community councils. Out of 589 contracts examined, serious breaches were found in 47 cases. Three contracts were terminated due to non-compliance, while warning letters were issued in 32 cases.
The recovery of Turkish Cypriot residential properties has also begun. So far, 91 housing contracts have been examined. Violations were identified in 31 cases and warning notices were sent requesting that the irregularities be corrected. In six cases where there was no compliance, the Service proceeded with the recovery of the houses, while similar measures are being promoted for three additional properties. Legal measures have been taken in the remaining cases.