Rafaela Dimitriadi
A new chapter in the management of Turkish Cypriot properties has begun with the implementation of the reform introducing competitive bidding procedures, which has been in progress since last February. In her interview with "K", the Director of the Service, Anthi Lakkotrypi, described it as a major reform that modernizes the way properties are allocated, whether they are high-value assets or properties that are not financially worthwhile to repair. She said the reform also strengthens transparency, equal treatment and the efficient management of Turkish Cypriot properties under guardianship. She also explains which properties are covered by the reform and who is eligible to participate in the competitive bidding process.
The goal, she said, is for the country to shift from a model of static management to one focused on rational and transparent use, within the framework of the relevant legislation.
Which properties are included in the competitive bidding process?
The competitive bidding process does not apply to all Turkish Cypriot properties. It is limited to specific categories of properties that, because of their nature and characteristics, can be put to better use through an open and competitive process.
"The aim is for our country to shift from a model of static management to one of rational and transparent use, within the framework of the relevant legislation."
The first category includes commercial premises and open spaces located in Special Management Areas (SMAs). These are areas with unique urban planning, commercial or economic characteristics, such as city centers, commercial districts or locations with strong development potential. Examples include the Mackenzie area and Piale Pasha Street in Larnaca, the walled city of Nicosia, and other individual plots known as "prime properties" because of their high market value and commercial appeal.
These areas or individual properties are designated by the Guardian following a recommendation from the Turkish Cypriot Properties Management Service and require approval from the Council of Ministers. Because they attract strong commercial and investment interest, the competitive bidding process helps ensure that these properties are put to their most productive use for the benefit of both the Guardian and the Turkish Cypriot Properties Fund.
The second category includes commercial premises that have been issued an Unsuccessful Visual Inspection Certificate. These are properties that, because of their condition or the extent of repairs required, are not financially practical for the state to restore before allocating them. Instead of allowing them to sit vacant and continue to deteriorate, they are offered through competitive bidding in their current condition. This gives refugee investors and business owners the opportunity to develop the properties while taking responsibility for the necessary improvements. At the same time, the Fund generates income from properties that would otherwise remain unused.
By focusing on these two categories of Turkish Cypriot properties, the new legislation achieves two objectives. It maximizes the value of properties with strong commercial potential while also returning neglected properties to productive economic use when they would otherwise be difficult or too costly to allocate through the standard process.
Who is eligible to participate in the competitive bidding process?
The new legal framework keeps refugee support as its main priority. The first two calls for bids for every property are open exclusively to refugees. This gives refugees the first opportunity to use Turkish Cypriot properties for business purposes.
However, the legislation also provides that if no valid bid is submitted by an eligible refugee after two consecutive bidding procedures for a specific property, the third call for bids is opened to non-refugees as well.
This approach creates a practical balance between two important objectives. It gives clear priority to refugees while also ensuring that Turkish Cypriot properties offered through competitive bidding do not remain vacant or unused indefinitely. Instead, they can be put to productive use for the benefit of both the Guardian and the Fund.
How does the Service ensure that competitive bidding procedures are transparent and based on merit?
Transparency is a core principle of the new competitive bidding system and of the broader legal framework governing Turkish Cypriot properties. Every property offered through competitive bidding is published on the websites of the Turkish Cypriot Properties Management Service and the Ministry of the Interior. These listings include all tender documents, participation requirements, property descriptions, the reserve rental price, bid submission deadlines and lease terms. The first call for bids remains open for 45 days. If a second or third call is needed, each remains open for 30 days. This process gives every interested party access to the same information and the same opportunity to participate.
Before the first call for bids, every property undergoes a visual inspection. The Department of Lands and Surveys then determines the reserve rental price. Bids are evaluated by the competent Departmental Committee using predetermined criteria. The Guardian must award the lease to the highest financial offer above the reserve price, provided that all other tender requirements have been met.
What are the first results from the implementation of the competitive bidding process?
The competitive bidding process is already underway. So far, ten calls for bids have been published covering seven different properties, including both SMAs and properties that are not financially viable to repair. Some properties have already gone through second or even third bidding rounds, as required by the legislation when no successful bid is received from an eligible refugee. Competitive bidding procedures are also being prepared for another five properties. The regular publication of tenders on the Service's website, together with complete information about current bidding opportunities, shows that the new framework is being implemented consistently and transparently so that interested parties receive timely information and have the opportunity to participate.
What are the benefits of the competitive bidding process, and why was this reform necessary?
The competitive bidding process provides several benefits by combining more effective use of Turkish Cypriot properties with transparency and equal treatment for everyone who participates.
Most importantly, it ensures that Turkish Cypriot properties with significant commercial value or development potential do not remain unused. Instead, they return to productive economic activity through an open and competitive process. This helps revitalize commercial areas, supports entrepreneurship and creates new business opportunities for refugees.
The competitive bidding process also increases revenue for the Fund, providing additional resources for the maintenance and management of Turkish Cypriot homes where refugees
