Turkish Cypriots own more than 10% of the Republic of Cyprus's territory. The Ministry of Internal Affairs (MIA) recently announced this during a press conference dedicated to presenting a new system for managing such properties. According to the ministry, the total area of Turkish Cypriot properties is 609,110,086 square meters, equivalent to 10.14% of the Republic of Cyprus's territory. According to the latest general cadastral valuation for 2018, the total estimated value of these properties is approximately €6.1 billion.
Who uses the property of Turkish Cypriots?
Currently, there are over 20,000 active leases on real estate owned by Turkish Cypriots in the Republic of Cyprus. Of these, 86.5% are allocated to refugees, while the remainder are given to state and municipal institutions, public law organizations, and private individuals. An analysis by property type shows that:
- 43% is agricultural land;
- 23% is residential;
- 14% is commercial;
- 14% is other, and
- 6% are holiday homes.
Revenue growth and debt reduction
The Turkish Cypriot Property Management Fund's financial statements for the last two years show steady progress. Overdue debt fell by 28.2% to €5.5 million at the end of 2024, compared to €7.66 million in 2023. Rental income increased by 15% to €6.56 million in 2024, up from €5.7 million the previous year. For comparison, income was only €5 million in 2021, and it has steadily grown since then. This positive trend was made possible by comprehensive management restructuring, tighter controls, and stricter policies toward nonpaying tenants.
Inspections, violations, and government action
The Ministry of Internal Affairs conducted a large-scale audit during which 4,032 properties were inspected for compliance with lease terms. Violations were recorded in 512 cases, and 162 tenants received notices to terminate their contracts.
Regarding properties transferred to municipalities, 82% of the 275 lease agreements were compliant, while 11% were not. A similar pattern emerged for the 589 properties managed by local councils: Eighty-six percent were being operated correctly, eight percent were in breach of the terms, and six percent were undergoing renovation or construction.
The new strategy involves increasing rent and modernizing the system.
A key part of the recent reform developed by the Cypriot government is recalculating rental rates, many of which have remained low for decades. It is worth noting that some of the new rates shocked MPs.
- In Limassol, for instance, the rent for a car dealership increased from €5,085 to €30,512 per year.
- In Paphos, a restaurant's rent increased from €308 to €6,000 per year.
- In Larnaca, the rent for a workshop increased from €62 to €5,280. Some rates have increased by more than 9,000%.
The state plans to enlist private sector appraisers, adjust all active contracts, and increase legal pressure on those who persistently violate lease terms.
The scale and value of Turkish Cypriot property in the Republic of Cyprus make it a strategically important asset. The Ministry of Interior's reforms aim to ensure transparency, efficient use of resources, and increased budget revenues. The new control system, revision of rental rates, and tightening of tenant liability are important steps in modernizing the management of this valuable asset.