Osman Amca, President of the Cyprus Turkish Construction Subcontractors Association, has raised serious concerns over the recent arrests linked to construction activities in southern Cyprus, warning that these actions have caused a slowdown in the sector and a significant drop in property sales to foreigners, according to Yeniduzen. Amca emphasised the urgent need for stakeholders to come together and find solutions to this growing problem.
In a written statement, Amca assessed the far-reaching effects of the arrests of construction company directors, noting that the decline in property sales could potentially lead to a complete halt in foreign investment. He also highlighted the ripple effect on associated industries that rely heavily on the construction sector, saying they are now facing financial struggles. Amca pointed out that the government collects around 40% in taxes from construction permits, cautioning that public finances have begun to experience deficits since the arrests began.
Amca also urged the Immovable Property Commission (IPC) to become more proactive by speeding up case resolutions and increasing compensation payouts. He stressed that legal support should be extended to foreigners who purchased property in northern Cyprus but now face imprisonment in southern Cyprus or other European countries due to title deed issues.
Homeownership Becoming Unattainable
Amca remarked that under current economic conditions, it has become nearly impossible for the average citizen to save enough to buy a home. He called on both the government and civil society to take an active role in addressing the housing crisis. One solution he proposed is the initiation of social housing projects aimed at the local market to help people achieve homeownership. Additionally, he suggested that unfinished construction projects in the Arapköy and Esentepe areas should be expropriated by the state and completed, which would bring a much-needed boost to the struggling construction industry.
“Bringing dormant assets back into the economy could not only revitalise the sector but also provide jobs for those whose livelihoods depend on it”, he concluded.
The Role of the Immovable Property Commission (IPC)
As of September 2024, the IPC has handled 7,734 applications, resolving 1,840 of them. Around £297 million has been paid for 1,161 claims. This commission, which deals with property disputes stemming from the 1974 Turkish Peace Operation, remains a key avenue for compensation and restitution. However, with nearly 5,894 applications still pending, the IPC continues to process claims at a steady pace.
In 2024 alone, 432 cases have been resolved, with payments managed by the Ministry of Finance. Since its inception, the IPC has paid out approximately £467 million. The IPC’s role remains critical for Greek Cypriots seeking restitution for properties in the north, and its rulings are recognised by the European Court of Human Rights.
By strengthening the IPC’s role and providing greater support to affected buyers, the hope is that some of the financial strain caused by the construction slowdown can be alleviated, while also offering legal protection for those entangled in title disputes.
