Povek threatens action on Turkish Cypriot property rent hike 

Business owners operating out of Turkish Cypriot properties expressed growing anger on Wednesday over steep rent increases imposed under amended legislation governing Turkish Cypriot properties, according to the small shopkeeper’s association, Povek.

The reaction follows the passage of amendments to the Turkish Cypriot properties management law, which business operators say have led to sudden and unsustainable rent hikes.

Povek leader Kyriakos Moustakas said the changes have caused “huge disruption” among affected tenants, adding that “disturbance has been created and if there is no response, mobilisations will be decided”.

A newly formed parliamentary committee representing displaced holders of business premises sent letters requesting meetings with the president, the interior minister, the House refugee committee and the refugee union.

The group argues that those affected lost their properties without compensation and are now being asked to pay market rents for premises they themselves developed to ensure their survival.

“These are people who built businesses from scratch in spaces that were empty plots or semi ruined buildings,” Moustakas said, adding that the committee is preparing a detailed memorandum explaining its objections to the law article by article.

The issue has escalated following disclosures at the House committee, where examples were cited of extreme rent increases.

In one case, rent for an industrial premises reportedly rose from €20 to €1,700 per month, placing the business on the brink of closure.

The head of the Turkish Cypriot property management service said the revisions aim to align rents with market values, suggesting that in some areas a “fair” rent could reach €10,000 per month.

Business representatives argue the new approach ignores decades of private investment.

Entrepreneurs in Limassol cited cases where up to €400,000 was spent on reconstruction, only to face rents of €800 to €1,000 per month without any recognition of incurred costs.

“This makes continued operation economically pointless,” representatives said.

Povek secretary general Stefanos Koursaris said the organisation has received a wave of complaints and has begun meetings across the country to document cases.

A memorandum will be submitted to government and parliament, seeking a revision of rent calculation principles.

The controversy is unfolding amid broader reforms to the allocation of Turkish Cypriot properties introduced in 2025.

Demand far exceeds supply, with more than 500 applications submitted for 21 residential units and 226 applications for 33 commercial properties in the first allocation round, increasing pressure for higher rents.

A second round launched in January 2026 has intensified concerns that the system could lead to mass business closures.

Additional discontent centres on inheritance rules, which exclude commercial premises and holiday homes from transfer to heirs.

Business groups describe this as “a blow to family entrepreneurship”, warning that decades long enterprises may be forced to shut when ownership changes.

The House committee is also pressing for transparency, calling for publication of the applicant scoring system to clarify how allocation decisions are made.

The dispute unfolds against a backdrop of past abuses in the management of Turkish Cypriot properties.

Audit office investigations revealed cases where properties were leased at minimal rates and later sold or sublet for millions, prompting criminal investigations and reforms aimed at ending exploitation and strengthening refugee housing policy.

Povek has appealed to MPs across parties to support a proposal to reduce commercial rents, which is due to be debated at plenary level.