Committee raises concerns over rising rents for Turkish Cypriot properties

The House refugee committee in Cyprus reviewed the proposed budget for the Turkish Cypriot Property Management Service on October 26, 2026. Committee chairman Nikos Kettiros identified significant distortions in rental pricing, stating that the state is inadvertently driving up costs by pegging rents on Turkish Cypriot properties to inflated market values in areas near foreign-owned investments, such as the Limassol Marina, Paphos Castle, and central Larnaca.

According to Kettiros, the service typically sets rents for these properties between 25 and 60 percent of the prevailing market rate. However, when local rents skyrocket due to foreign purchases, this calculation mechanism forces refugee tenants to pay unaffordable prices, often leading to business closures. As an example, a shopkeeper previously paying €200 monthly saw their rent adjusted based on a nearby premises leasing for €1,000. Kettiros noted that this approach lacks a logical framework and requires immediate clarification.

The committee has requested written responses from the service by next Tuesday. These submissions will determine the committee's final stance on the budget before it is presented to the parliamentary plenum. Additionally, the committee is seeking explanations for proposed cuts to the repairs budget.