A TOPIC OF MUCH DEBATE
Privately owned short-term rentals in Cyprus, remain a topic of much debate, with the Cypriot Government seeking to balance tourism growth with housing affordability and legal compliance. The explosion of short-term rental properties has steadily increased on the island in recent years, with visitors seeking easy-to-let, value-for-money accommodation.
A YEAR ON YEAR RISE
In total, 4.8 million stays were recorded for this type of accommodation in 2024, a 15% rise for similar properties during the previous year. These figures indicate that the short-term rental sector is experiencing significant growth year on year, with August being the busiest month. Just over 8,000 licenses have been issued or renewed, for this type of accommodation for 2025, providing a total of just over 35,000 beds in total. The district of Paphos leads with the highest number of units, followed by the districts of Famagusta, Larnaca, Limassol, and Nicosia in that order.
A BOOST TO LOCAL ECONOMIES
As this concept becomes more and more widespread, concerns are being raised about the wider implications for residents and future visitors to the island. Privately owned short-term rentals are thought to help drive tourism, creating jobs that boost local economies on the island. However, with the number of short-term rentals surging, several analysts are now warning of a greater long-term negative economic impact, suggesting that this model has already created a shortage of long-term rental accommodation. With this in mind, they have suggested that this has been instrumental in pushing up rental costs for residents, prompting some to call on a ban on short-term rentals altogether.
