The phenomenon is especially evident in coastal and urban zones of high investment interest, such as the Mackenzie area in Larnaca, the area between the new and the old port of Limassol, as well as corresponding coastal areas of Limassol. In many of these areas, significant plots of land or existing premises remain either leased under long-term arrangements or underutilized.

In most cases, these plots have been leased by the state to refugees for professional use, such as light industrial activities, restaurants, or other businesses, as part of social policy implemented after 1974. However, today these same areas are at the center of major investment plans aimed at upgrading the urban and tourism product, creating new jobs, and strengthening economic activity.

Despite these prospects, the presence of old buildings, often more than 50 years old, significantly affects the aesthetics and image of these areas, the formation of land and property values, as well as investor confidence and market stability.

In several cases, investment stagnation is observed due to uncertainty regarding the status of neighboring plots, the possibility of restructuring leases, or the lack of a clear long-term plan from the state.

Moreover, the state’s inability to terminate or renegotiate existing leases creates distortions in the market and affects the rational development of these areas, particularly at the infrastructure level.

It is clear that a more comprehensive and balanced strategic approach is required from the state. In our view, the utilization of Turkish Cypriot properties is not only a matter of urban planning policy or social management, but also a critical factor in shaping the competitiveness of the real estate market as a whole.