Nicosia, Cyprus. Cyprus is attempting to address alleged abuses in the allocation and management of Turkish Cypriot properties in government-controlled areas, a system described as vulnerable to subletting, neglect and underreporting of rental income. The total value of the properties is reported to exceed €7.5 billion, with projected annual rental income this year of about €6.56 million.
Properties placed under state guardianship
Following the Turkish invasion, Turkish Cypriot properties and land left behind after their exodus to the north were placed under state guardianship, accounting for more than 10 per cent of government-controlled territory. The state decided to allocate these abandoned properties to displaced persons for a nominal fee, with the condition they would be returned to their rightful owners should the political situation permit.
Creation of the Guardian body
In 1991, legislation established the special administrative body known as the Guardian of Turkish Cypriot properties, under the auspices of the interior ministry, to manage these assets.
Allegations of misuse and political influence
For decades, Turkish Cypriot homes were allocated at the discretion of the interior ministry, with decisions often influenced by party loyalty or personal connections. The system enabled both refugees and non-refugees to benefit from what was described as a broken framework.
Token rents and undervalued leases
A legacy of token rents, paper contracts and inertia left the properties open to exploitation. Interior Minister Constantinos Ioannou cited an example of a building worth €4 million with a market rate of €6,000 per month being rented for €30.
Tenders and use of homes as holiday residences
Through public tenders, properties in isolated Turkish Cypriot villages were assigned based on ability to pay rather than housing need, allowing homes intended for refugees to be repurposed as holiday residences, often by non-refugees.
Parliamentary action
The House refugee committee, chaired by Akel MP Nikos Kettiros, moved in June 2025 to end the practice of allocating such properties through tenders on the basis of payment capacity.
What measures do you think should be prioritised to ensure Turkish Cypriot properties are managed transparently and fairly?
