For the first time, prime Turkish Cypriot properties of high commercial value will be offered for lease through a competitive tender process, with the highest bid securing the contract. The first public tender is expected to be launched in February, following recent legislative changes governing the management of Turkish Cypriot properties.
Publication of available properties and application process
With the publication of available Turkish Cypriot properties for lease on the website of the Turkish Cypriot Properties Management Service, a significant step towards transparency has been taken. Displaced beneficiaries can now access information and submit applications for available properties.
To date, three publication rounds have taken place, in June 2025, October 2025 and January 2026. A total of 114 Turkish Cypriot properties across Cyprus were listed, attracting strong interest. These included 32 residential units, 35 commercial premises, 36 open spaces and 11 agricultural plots.
New leasing rules and limits on ministerial discretion
Leasing of these properties is now carried out on the basis of clear, transparent and measurable criteria. As a result, the Custodian of Turkish Cypriot Properties, namely the serving Minister of Interior, no longer has the authority to allocate properties at discretion, as was previously the case.
Under the new legislation, ministerial discretion is significantly restricted and permitted only in specific cases explicitly defined by law.
Introduction of competitive bidding for high-value properties
A further step towards transparency is expected in the coming days, as high-value Turkish Cypriot prime properties and buildings of significant worth will, for the first time, be offered for lease through a competitive bidding process. Under this procedure, the successful lessee will be the bidder offering the highest rent.
According to information obtained by Politis, the first competitive tender will take place within February and will be announced in advance by the Turkish Cypriot Properties Management Service.
The tender will concern:
- A Turkish Cypriot prime property in the centre of Limassol
- A Turkish Cypriot prime property in the Mackenzie area
- A building in Nicosia within the walls
Creation of special management zones
With the aim of ensuring rational and transparent utilisation of Turkish Cypriot properties of high commercial value, the Council of Ministers of Cyprus approved, on 23 December 2025, a proposal by the Minister of Interior, Constantinos Ioannou, for the establishment of Special Management Zones.
These zones were selected using strict and objective criteria, in cooperation with the Department of Town Planning and Housing and the Department of Lands and Surveys, based on urban planning, economic or other special characteristics.
The initial Special Management Zones include the Mackenzie area and Piale Pasha Street in Larnaca, walled Nicosia, as well as other individual prime properties.
Properties within these zones that are available for lease will now be offered exclusively through competitive bidding, replacing previous subjective allocation decisions with an open public tender process. All bids will be submitted under predefined terms published with each call by the Turkish Cypriot Properties Management Service, ensuring equal access for eligible refugees to high-value properties.
Transfer of lease rights under the new legal framework
Another key change introduced by the recently implemented legislative framework concerns Turkish Cypriot residential properties. The transfer or assignment of lease rights is now permitted.
In the event of the death of a tenant, lease rights may be transferred to relatives, who assume full responsibility for maintenance. Alternatively, the lease may be assigned to another refugee, who will be deemed to have received the housing assistance to which they are entitled.
For commercial premises, the new legislation allows temporary assignment of use to another refugee for a period not exceeding five years. This applies in cases where the tenant is unable to use the property due to health or other personal reasons, subject to approval by the Custodian and under conditions set on a case-by-case basis. Transfer of a commercial lease to another refugee is also permitted, again for a period not exceeding five years.
For agricultural land, lease transfer is allowed under certain conditions to the heirs of a deceased tenant. This applies to permanent crops, livestock facilities or dry farming linked to development activities.
Review of Turkish Cypriot holiday homes
Different provisions apply to Turkish Cypriot holiday homes, which are not subject to the same rules as permanent residences. Many of these properties were allocated years ago to non-refugees in order to prevent abandonment and are currently leased at particularly low rates.
According to the Ministry of Interior of Cyprus, each existing lease will be reassessed. In cases where users are found to have already recouped any investment or expenditure, a decision will be taken on whether continued occupation will be permitted or whether the property will be recovered.
Subsequently, the intended use of each property will be re-evaluated to determine whether it will remain a holiday home or be allocated for permanent residence.
Turkish Cypriot properties in figures
- Turkish Cypriot properties account for approximately 10 percent of the free areas, with an estimated value of around €6.1 billion, based on the 2018 general valuation.
- Of the total stock, 23 percent αφορά permanent residences, 6 percent holiday homes, 14 percent commercial premises, 43 percent agricultural plots and 14 percent other open spaces.
- There are currently 20,093 active lease contracts, of which 86.5 percent involve refugees. The remaining 13.5 percent are contracts between the Custodian and other state bodies, organisations or non-refugees.
- Revenue collected from the leasing of Turkish Cypriot properties in 2025 amounted to approximately €6.5 million.
Source: Politis Sunday edition