SHORT-TERM STAYS ON THE RISE!
Demand for short-term rental accommodation across Cyprus is now soaring, creating one of the fastest-growing recent economic sectors on the island. This comes after analysts recently recorded one of the strongest recent surges of overnight stays at the island’s most popular resorts.
The rapid acceleration in demand for short-term rental accommodation is also highlighted by the fact that Cyprus has risen to third in recent rankings. These statistics, compiled by the most prominent online platforms, reveal that Cyprus ranks third with regard to the overall volume of short-stay accommodation across the European Union.
Cyprus now follows closely behind Malta and Slovenia, which remain the most popular European destinations for short-stay accommodation. Major tourism destinations such as Spain, Germany, France, and Greece have also posted strong double-digit growth, reflecting an overall broader recovery in European tourism.
A POPULAR NEW ARRANGEMENT
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 simply not available in previous years, has made Cyprus more accessible to people who would otherwise not visit the island.
The economic benefits that come with this type of accommodation are also more readily apparent. Cheaper accommodation is thought to help increase visitor numbers and their individual spending power. This ultimately helps 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, enhancing the island’s overall economic vitality.
REVAMPING THE TRADITIONAL ACCOMODATION MODEL
The short-term rental accommodation model in Cyprus is growing at a rapid rate across the country. This is leading to concerns for some analysts. Modern technology, and in particular the internet, has not only revolutionised its availability but has also helped to transform it. Short-stay accommodation, as a result, can be booked directly within minutes, and online sites, such as AIRBNB and BOOKING.COM, now offer a variety of rental options in all parts of the island.
A TOPIC OF MUCH DEBATE
A growing majority of travellers now use internet sites to find value-for-money accommodation. They claim that the main attraction is not only the price, but also their easy-to-let nature. This is helping to fuel the recent surge in short-term rental accommodation across the island. The growing popularity, however, is now prompting considerable debate, and 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
Recent figures suggest 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. This equates to a total of approximately 35,000 beds. The district of Paphos leads with the highest number of units. This is closely 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 a rise in tourism. They have also proven to create additional employment opportunities. This has ultimately boosted local economies across the island. However, with the number of short-term rentals surging, there are warnings 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!
NEW LEGISLATION FOR SHORT TERM RENTALS IN CYPRUS
The hotel sector is currently reeling from what they claim is unfair competition from previously unlicensed rentals. As a result, they are pushing for more compliance concerning short-term rentals. They claim that their aim is to improve oversight of the rental market. This is a response to concerns from the hotel sector that is seeking to uphold quality.
This has directly led to legislation that now requires the registration of properties being used for short-term rentals. All property owners renting out villas, apartments, or houses now have to register as part of a new initiative to uphold quality. All owners must now hold a valid permit, and those who do not face serious penalties.
As a result, all short-term rental units should now have a unique registration number under the law. This number is given to a property after registration, and must be shown clearly in any advertisements for any such properties. This scheme currently has over 9,000 registered properties across the island.
Those who are currently operating without a permit face fines, a year in prison, or both. Repeat offenders may face an extra €200 fine for each day a violation continues.
