Real estate, casinos, and foreign capital: the economic reality in the occupied areas

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📰 Cyprus

Real estate, casinos, and foreign capital: the economic reality in the occupied areas 05.07.2026

Politis

The economic situation in the occupied areas is characterized by a comprehensive cost-of-living crisis, which deeply affects the daily lives of Turkish Cypriots. According to data from the Statistics Office of the occupied areas, annual inflation for February highlighted the serious problem, reaching 40.22%. Price increases are particularly intense in critical sectors, such as rent, education, entertainment, and the hospitality industry, leading to the erosion of the middle class and pushing many families to the brink of poverty. At the same time, a significant increase in crossings by Turkish Cypriots to the free areas is observed, as citizens seek lower prices for their basic purchases. Economic pressure and the widening gap between rich and poor populations are creating a suffocating reality that directly affects the social cohesion and economic stability of the region.

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