The Government of Cyprus has terminated more than 300 lease agreements for real estate belonging to Turkish Cypriots. The basis was a large-scale inspection that revealed systematic violations of the terms by tenants. The audit findings regarding the activities of the Turkish Cypriot Property Management Service were published on Monday, 26 January, and triggered a broad public reaction.
Inspection results and identified violations
During the audit, 4 032 lease agreements for commercial real estate were analyzed. Violations of the terms were recorded in 590 cases. Some tenants brought their activities into compliance after intervention by oversight bodies; however, in 280 cases the state decided to terminate the contracts in full. These measures became part of a course toward stricter and more transparent control over the use of state property.
Special attention was also paid to agreements concluded with municipalities and village councils. The inspection showed that violations occurred at this level as well, underscoring the systemic nature of the problem and the need for uniform rules for all categories of users.
Residential property and eviction procedures
The audit also covered 91 lease agreements for residential units. In 31 cases, non-compliance with the terms of use was identified, after which tenants were sent official warnings. In six episodes, the authorities have already initiated eviction procedures, indicating a shift from formal remarks to real enforcement measures.
Legislative changes and a new allocation system
The inspection was a continuation of a reform launched last year after changes to legislation regulating the use of abandoned Turkish Cypriot property. The state moved to a system of allocating properties based on clear criteria and a points-based assessment, fully abandoning the practice of individual decisions by the Minister of the Interior.
The Minister of the Interior, Konstantinos Ioannou, previously described the reform as a decisive step toward rational and fair management of Turkish Cypriot property. He recalled that land belonging to Turkish Cypriots accounts for 10,14% of the total territory of the Republic of Cyprus, and that income from its leasing in 2025, by estimates, reached about 6,56 million euros.
Transparency, equality, and economic impact
According to the minister, the previous legal model created inequality among Greek Cypriots who became displaced persons and use this property. The new points-based system is grounded in objective and measurable indicators, including the applicants’ financial and family circumstances, which makes it possible to reflect real needs more accurately.
Abolishing the minister’s discretionary powers significantly reduced the risk of preferences and subjective decisions. Today, the allocation of Turkish Cypriot property is carried out on the basis of a transparent assessment that is the same for all applicants, aligning with modern standards of public administration and strengthening public trust in the reform.
Amid ongoing debates about the fair use of state property and Cyprus’s limited land resources, tighter oversight and the termination of breached contracts are seen as an important signal of a shift toward more responsible and effective property management.