The Cypriot government wants to change how it calculates rents for state-owned property.
The rental rate will be based on use, not market value. The goal is to eliminate inconsistencies in leasing state assets. There is now a big difference between districts.
Papanastasiou said there is a big difference in the rates charged by different agencies.
The current responsibilities for this issue are divided between two ministries. The Ministry of Energy, Trade and Industry oversees the enforcement of the lease policy depending on its use. Meanwhile, the Ministry of Interior determines the rent based on the market value of the property. This division leads to disagreements that undermine fair competition.
Papanastasiou said it's hard to change real estate policy because of legal issues. This means changes to rent conditions will affect new contracts or leases.
The minister said that they are considering normalising rent amounts. For example, they are looking at ways to help those with very low or very high rents.
Cypriot entrepreneurs have recently faced problems with high land rental fees.
Local businesses are being asked to pay much more for their leases. The new rates are much higher than the old ones. Many are also being asked to pay back money they say they don't owe.
Kyriakos Moustakas from the POVEK trade union said that the situation is made worse because industrial plots and agricultural land in industrial zones are under the control of two different ministries, each of which uses different rent calculation methods.
This means that entrepreneurs in the same business pay different rent for the same land.
This problem will soon be solved. The rent will be based on the type of land use, not its market value.