By Murat Yıldız
Nearly five decades after Cyprus was divided, property remains one of the island's most difficult unresolved files.
Today, the dispute is being shaped by two parallel legal paths: a compensation mechanism recognised by the European Court of Human Rights (ECtHR) and criminal proceedings targeting certain property-related activities in northern Cyprus.
For a Greek Cypriot property owner who lost access to property after 1974, the Immovable Property Commission (IPC), known in Turkish as the Taşınmaz Mal Komisyonu (TMK), offers a route for seeking compensation, restitution or exchange.
At the same time, foreign nationals involved in purchasing, developing or promoting Greek Cypriot-owned property in northern Cyprus can face criminal proceedings initiated by the Republic of Cyprus.
The two approaches address the same unresolved property file through different legal frameworks, reflecting the continuing connection between individual claims, international judgments and the wider political dispute over Cyprus.
The issue has gained renewed attention ahead of the August 26 meeting between Turkish Cypriot President Tufan Erhürman and Republic of Cyprus President Nikos Christodoulides, as efforts continue to rebuild momentum for Cyprus talks.
A Property File Measured in Applications and Millions
The scale of the dispute is reflected in the numbers.
By August 2026, the Immovable Property Commission had recorded 8,755 applications from Greek Cypriot property owners.
The commission had completed examination of 3,592 applications by August 14, while total compensation awarded to applicants reached £662.9 million, approximately €775.9 million, according to figures released by the commission.
Established under Turkish Cypriot Law No. 67/2005, TMK can examine claims for compensation, exchange and restitution, along with additional claims related to loss of use and non-pecuniary damages.
Commission President Növber Ferit Veçhi has said that around 99 percent of completed cases have ended through friendly settlement, with the body continuing to process applications on a regular basis.
The increase in applications and compensation payments shows that TMK remains a central mechanism for individual property claims nearly two decades after its establishment.
For many applicants, the commission represents a practical legal avenue. For the Republic of Cyprus, however, TMK remains politically disputed because of its connection to the unresolved status issue on the island.
Between Individual Remedies and Criminal Proceedings
While TMK addresses individual claims through a compensation framework, the Republic of Cyprus has developed a separate legal approach through criminal proceedings connected to property transactions in northern Cyprus.
The cases have involved charges including what the Republic of Cyprus terms "usurpation of property", fraudulent transactions involving another person's property, conspiracy and money laundering.
The most prominent cases have involved foreign nationals active in the northern Cyprus property market.
Israeli developer Simon Aykut was convicted after admitting charges related to property developments and received a prison sentence.
German estate agent Eva Isabella Künzel was arrested at Larnaca airport in July 2024 and has remained at the centre of a legal dispute. Her lawyer has described the case as politically motivated, while the German embassy in Nicosia raised concerns over the proceedings.
Two Hungarian nationals were also convicted by the Nicosia Criminal Court in May 2025 over property-related activities connected to projects near villages in the Kyrenia district.
Unlike TMK, which operates as a remedy mechanism for individual applicants, criminal proceedings introduce a different question: whether property disputes should primarily be addressed through settlement mechanisms or through judicial action.
Republic of Cyprus President Nikos Christodoulides has said the executive branch does not interfere with judicial proceedings but that prosecutions send a message to those involved in selling or promoting Greek Cypriot-owned property.
Cafer Gürcafer, head of the Turkish Cypriot Contractors' Association, has estimated that up to 85 percent of privately owned property in northern Cyprus could fall within the scope of similar disputes. The figure is the association's own estimate.
From Strasbourg Judgments to a Divided Legal Reality
The legal path behind TMK was shaped by a series of ECtHR decisions concerning property rights under the European Convention on Human Rights (ECHR).
In Loizidou v. Turkey, decided in 1996, the ECtHR established an important line of jurisprudence concerning property rights linked to Cyprus.
The Xenides-Arestis pilot judgment in 2005 called for an effective domestic remedy for Greek Cypriot property claims.
Türkiye responded by establishing TMK in 2005.
In Demopoulos and Others v. Turkey, decided by the Grand Chamber in 2010, the ECtHR found that proceedings before TMK provided an accessible and effective framework of redress for property claims.
The ruling changed the handling of individual applications, but it did not remove the political dimension of the Cyprus property dispute.
The Council of Europe Committee of Ministers has continued examining the implementation of ECtHR judgments related to Cyprus.
At its June 2026 meeting, the committee did not reach the required majority to close supervision of the property-related cluster of the fourth interstate case.
Republic of Cyprus Foreign Minister Constantinos Kombos described the outcome as a diplomatic success, arguing that closing the process would have recognised that Ankara had fulfilled its obligations regarding Greek Cypriot refugees.
Erhürman viewed the issue differently, defending TMK as a mechanism recognised by the ECtHR.
On August 20, he said:
"It is unacceptable to try to prevent applications to the Immovable Property Commission, which has been recognised by the ECtHR as an effective domestic remedy."
He added:
"The property issue cannot be solved through criminal law."
A Legal File Within a Larger Confidence Process
The property dispute remains one of the clearest examples of how legal, political and human dimensions overlap in Cyprus.
Erhürman has also raised the issue of Turkish Cypriot properties left in the south. The Republic of Cyprus administers such properties through the Office of the Guardian of Turkish Cypriot Properties, a separate mechanism that has also been part of political debate.
TRNC Prime Minister Ünal Üstel has criticised what he described as political pressure against TMK.
"Those who think that these pressures and obstruction attempts will make us give up our rights, our sovereignty, and our state are gravely mistaken," Üstel said on August 21.
The August 26 Erhürman–Christodoulides meeting will not solve the property dispute overnight. Decades of division cannot be reversed through a single meeting or a single legal mechanism.
But the property file also shows why progress on Cyprus is likely to come through gradual steps rather than one dramatic breakthrough.
Confidence-building measures, practical cooperation and continued dialogue may not replace a comprehensive settlement, but they can create the political space needed to address the island's most difficult questions.
The property issue remains unresolved. The legal paths, however, are already shaping the reality in which future negotiations will take place.
Sources: Immovable Property Commission, Council of Europe Committee of Ministers, European Court of Human Rights, Republic of Cyprus Ministry of Foreign Affairs, Bosphorus News review and reporting.