The House of Representatives plenary session approved the 2027 Budget of the Turkish Cypriot Properties Fund at its meeting today. The budget projects total revenues of €16 million and expenditures of €16.8 million, with the deficit limited to approximately €812,000, representing a reduction of €1.4 million compared to 2026. For the first time, the budget is balanced, in contrast to the persistent deficits of previous years, which approached €2.5 million annually.
The improvement in the Fund’s financial situation is the result of specific and targeted measures, as well as systematic measures implemented over the past three years, aimed at boosting revenue and making more effective use of Turkish Cypriot properties for the benefit of the refugee community.
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According to an announcement from the Ministry of the Interior, within this framework, among other things:
- Inspections of lease agreements have been intensified: More than 5,000 lease agreements have been inspected, during which violations were identified in 590 cases, and specific compliance measures were taken, including property repossessions and legal actions. Audits of lease agreements for Turkish Cypriot residences are ongoing.
- Transparency and equal treatment of displaced persons have been strengthened: Through public announcements and competitive bidding processes, the rational utilization of available property is being promoted. Specifically, from June 2025 through October 2026, a total of 356 properties were listed, while competitive bidding processes were announced for eight properties.
- Revenue from property rentals increased: The implementation of the new rent adjustment policy contributed to an increase in related revenue from €5.4 million in 2023 to €7.3 million in 2026. This upward trend is expected to continue in 2027, with total revenue from rent and other sources projected to reach €8.8 million, representing an increase of approximately €1.4 million compared to 2026.
- New opportunities for revenue growth were capitalized on: The implementation of the Special Action Plan for the Makenzy area generates annual revenue in excess of €875,000, while the rationalization of rents has already yielded additional revenue of €257,000. At the same time, coordinated efforts and negotiations are underway to settle overdue debts as part of the broader Financial Consolidation Project.
In a video statement, Interior Minister Konstantinos Ioannou welcomed the passage of the Budget, emphasizing that it “reflects the significant progress that has been made in streamlining and modernizing the management of state assets.” As he notes, this year’s Budget is balanced, “confirming the effectiveness of the measures we are taking for the financial consolidation of the Guardian Fund.”
According to Mr. Ioannou, “these additional resources are being used to strengthen the Service’s programs, with an emphasis on the maintenance and repair of Turkish Cypriot properties.”
“Our goal is a more financially sustainable Fund, with effective management, that consistently fulfills its social role and meets the needs of the refugee community,” he concludes.
Finally, warm thanks are extended to the Chair and members of the Parliamentary Committee on Refugees for their constructive cooperation and their long-standing support for the work of the Turkish Cypriot Property Management Serviceand the Ministry more broadly.
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