NEW OPTIONS FOR ACCOMMODATION
Modern technology, and in particular the internet, has not only revolutionised accommodation options in Cyprus but also transformed them. Online sites, such as Airbnb & Booking.com, now offer a variety of rental options across the island that can be booked directly within minutes. This has helped fuel the recent surge in short-term rental accommodations across the island. The growing majority of visitors now use these sites to find value-for-money accommodation that is easy to let.
A TOPIC OF MUCH DEBATE
The growing popularity of short-term rental accommodations across the island is now prompting considerable debate. Fears are constantly being raised regarding its sustainability. Authorities, seeking to balance tourism growth with long-term housing affordability and legal compliance, have also raised concerns.
A YEAR ON YEAR RISE
In total, just under 5 million stays were recorded for this type of accommodation in 2024. This represents a 15% increase for similar properties compared to the previous year. These figures also indicate that the short-term rental sector is experiencing significant year-over-year growth. Just over 9,000 licenses have been issued or renewed for 2025, resulting in a total of approximately 35,000 beds. The district of Paphos leads with the highest number of units, followed by the districts of Famagusta, Larnaca, Limassol, and then Nicosia in that order.
A BOOST TO LOCAL ECONOMIES
As the concept of short-term rentals becomes increasingly widespread, concerns are being raised about the broader implications for residents and future visitors to the island. Privately owned short-term rentals are believed to contribute to driving tourism. They have also proven to create additional employment opportunities that ultimately 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. Some analysts are suggesting that this model has already created a shortage of long-term rental accommodation. This has helped limit availability and pushed up rental costs for residents. This has prompted some to call for a ban on short-term rentals altogether!
SHORT TERM ACCOMMODATION ON THE RISE
Short-term rental accommodation across Cyprus is fast becoming ever more popular. Arguments both for and against this mode of accommodation exist, and with the phenomenon rapidly rising across the island, several analysts are now advising that this model should be fully embraced.
More and more tourists are now looking not only for a more versatile experience, but also for cheaper options when planning their vacations. Studies have shown that short-term rentals have attracted visitors to the island who would otherwise not have visited. Much to the detriment of the larger hotels, several travellers are now being drawn to this relatively cheaper and easier option. The trend is also representative of a broader movement that is now occurring throughout Europe. It seems that younger generations, as well as lower-budget travellers, prefer short-term rentals.
In addition to this, it has also been found that, as well as affordability, flexibility is also proving to be a main factor for this choice of accommodation. Short-term rentals often fit in with a desire for a more individualised travel experience. This model, which was just not available in Cyprus in previous years, has made Cyprus more accessible to people who would otherwise not have visited the island.
The economic benefits that come with this type of accommodation are also readily apparent. Cheaper accommodation is thought not only to help increase individual spending power, but also visitor numbers. Both of these factors often help to boost the local economy. Travellers who choose short-term rentals have been found to typically spread their spending over a wide variety of services. These include dining establishments, transportation, and rental cars, thereby enhancing the overall economic vitality of a region.
NEW LEGISLATION FOR SHORT TERM RENTALS IN CYPRUS
The push for compliance, with regard to short-term rentals, aims to improve oversight of the rental market. This is a response to concerns from the hotel sector about unfair competition from previously unlicensed rentals.
As a result, legislation that requires the registration of properties being used for short-term rentals is now in place. All property owners renting out villas, apartments, or houses without proper registration are illegal in Cyprus. As a result, all owners must hold a valid permit. Those who do not face serious penalties.
Those who are operating without a permit, or after a permit has been revoked, face fines, a year in prison, or both. Repeat offenders may face an extra €200 fine for each day a violation continues.
As a result, all short-term rental units should have a unique registration number under the law. This must be shown clearly in any advertisements for any such properties on sites such as Airbnb and Booking.com. This scheme currently has over 9,000 registered properties across the island.
