The Refugee Committee reviewed the budget of the Turkish Cypriot Properties Administration today, which focused, among other things, on the increase in rent on Turkish Cypriot land due to the purchase of properties adjacent to Turkish Cypriot ones by foreign buyers. As Committee Chairman Nikos Kettiros stated, “There is currently a distorted situation in areas where market rents have risen due to the purchase by foreigners of properties adjacent to Turkish Cypriot properties.”
He noted that when market rent is used as a benchmark “in areas such as Limassol Marina, Paphos Castle, or now the center of Larnaca, there is an upward distortion.”. He added that “instead of keeping rents in check, the government is following these crazy rates, resulting in a lack of reasonable rent distribution.”
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As he noted, they will be informed in writing about these issues by next Tuesday. “Depending on the positions they submit, the parties will take a stance so that the budget can be brought before the Plenary,” he said.
When asked whether there has been a rent increase on Turkish Cypriot properties in areas near key locations, the Committee Chair explained that rent for Turkish Cypriot properties is set at 25% to 60% of the market rate.
Mr. Kettiros explained that if someone were paying 200 euros in rent in a certain area—for a store, a bar, or a souvenir shop, and the neighboring store—which is not Turkish Cypriot-owned— is purchased by a third-country national in Larnaca, and the rent rises to 1,000 euros per month, it means that the Turkish Cypriot Property Service will come to set the rent for the refugee in the Turkish Cypriot store based on the market rent there, which is 1,000 euros. “This is distorted,” he said.
He noted that “if we continue at this pace, we’ll force people to close their shops because they can’t keep up with these distorted rates.” He added that there is a serious distortion, especially in certain commercial areas, which needs to be reevaluated “so that we do not drive out the Greek Cypriots and fill the area with third-country nationals who have flooded the center of Larnaca, Limassol, and have begun to flood Paphos as well,” as he put it.
The Chairman of the Refugee Committee also pointed out that the Turkish Cypriot Property Management Agency is the first organization to submit its budget, which he described as positive, although he noted that clarifications were requested on certain points “so that we can take a position next Tuesday at the Committee’s next meeting.”
By way of example, he cited the reduction in the budget allocation for housing repairs, noting that it amounts to 2 million per year, the reasons for delays in repairs as well as in decisions regarding the return of Turkish Cypriot or other properties to beneficiaries approved through the points-based system.
As Mr. Kettiros stated, the director of the Service has been asked to provide a timeline for the regulations to be submitted to Parliament, “regarding significant changes concerning vacation homes, rents, and agricultural plots.”
Budget set at 16 million
DISY MP Giorgos Lysandridis stated that the Agency’s budget amounts to 16 million, with 6 million in state funding, while an additional 750,000 is earmarked for the repair of Turkish Cypriot homes destroyed in the major fire in Mallia. He added that the budget is also expected to be bolstered by revenue of approximately 8.7 million from rent expected to be collected from Turkish Cypriot properties, primarily commercial properties and agricultural land, which are leased to Greek Cypriot applicants.
He noted that, compared to 2026, there has been a drastic reduction in the budget deficit, from 2.2 million to 800,000, “and this is a significant achievement, if you will, of the Service, which—through the new framework for managing Turkish Cypriot properties and the regulations that, with the assistance of the House of Representatives and other stakeholders, has been implementing since 2025, has increased its revenues and, above all, is making better use of prime properties, such as the estates in the Makenzie area.”
He added that the Refugee Committee is expecting the new regulations—or “supplementary ones,” as he put it—in early 2027.
He also expressed the desire for corrective measures to be taken in cases of skyrocketing rent prices, and went on to mention the need to resolve issues regarding the scoring of applicants, staffing, and better utilization of personnel, noting that “key staff members of the Agency are retiring, and it appears there is also a delay in processing applications.”
It is unacceptable and unfair for prices to rise
For his part, DIKO MP Adamos Aspris described the phenomenon of price increases due to market price fluctuations as “unacceptable and unfair,” noting that, due to economic growth, a small business owner might see the rent on their premises skyrocket.
He also said that during the discussion, the need for increases in the budget for repairing homes located on Turkish Cypriot land had also been raised. “In other words, the budget allocation must be sufficient to meet current needs.”
He added that there is also an issue regarding the allocation of Turkish Cypriot homes as vacation homes to refugees, noting that “it has been found that in many cases, while the state is fully entitled to reclaim these homes and use them for owner-occupancy purposes, it has nevertheless been observed that our refugees very often spend several thousand euros, tens of thousands of euros to repair these homes, and immediately afterward the state comes along, takes these homes back, and allocates them elsewhere. “This is a distortion that, in my view, blatantly wrongs our refugees.”
Mr. Aspris also noted that a distortion has been identified regarding agricultural plots. “In other words, a solution must be found so that small plots of land—which are mostly not used for cultivation or production—are treated more fairly with regard to our refugees, so that they do not have to pay such significant amounts in social security contributions.” In conclusion, he noted that the Turkish Cypriot Property Management Agency has committed to getting back to them with specific answers.
Source: CNA
