The Cyprus Real Estate Agents Registration Council this week called on the government to ban short-term property rentals, a market dominated by online platform Airbnb, to help lower rental prices.
This appeal comes amidst rising concerns over the economic impact of the growing number of short-term rental properties, which the council says is driving up housing costs and limiting the availability of long-term rental options.
“This phenomenon is taking on alarming proportions and is largely responsible for the skyrocketing rental prices of houses and apartments, keeping them at high levels,” the council said.
“In a difficult period for Cypriot society, with inflation and high interest rates making home ownership difficult or even impossible, more and more of our fellow citizens are turning to renting,” it added.
Moreover, the council said that “while the demand for rental housing is increasing, the supply of properties is not keeping pace, resulting in rental prices reaching exceptionally high levels, often equivalent to a monthly salary”.
Marinos Kineyirou, president of the Cyprus Real Estate Agents Registration Council, highlighted the gravity of the issue, stating that “the short-term rental market is depriving the Cypriot housing market of thousands of homes and apartments that could be offered for long-term rental”.
He added that the council had previously warned about the problems caused by the lack of affordable housing and the negative effects on Cyprus’ tourism quality, but their concerns have not been addressed.
Kineyirou also touched on the twin issue of persistent inflation and high interest rates, which have made it increasingly difficult for Cypriots to purchase homes, leading many to rely on rental properties.
However, the supply of rental properties is not meeting the demand, resulting in exceedingly high rental prices.
“As real estate professionals, we know that many buyers and investors are acquiring new and used homes to rent them out on a short-term basis,” he said.
“Consequently, the supply will never meet the demand, keeping rental prices unaffordable for a significant portion of the population,” he added.
Drawing on international examples, Kineyirou referenced Barcelona’s decision to prohibit short-term rentals from 2029, suggesting it as a model for Cyprus to consider.
He emphasised that action is necessary, stating that “the problems are not solved with wishful thinking but with actions, and it is time for the authorities to take responsibility because society is suffering”.
“Only by banning short-term rentals will we see an increase in property supply and a reduction in rental prices across all cities,” Kineyriou added.
The council also expressed concerns about the adverse impact on Cyprus’ tourism image.
“As the council has pointed out in the recent past, there are cases where owners of apartments, offered as short-term rentals, do not provide a complete picture of the condition of the buildings in which their properties are located or even present misleading photographs to entice prospective tenants,” the council stated.
To address this, the council proposed that only hotels and organised housing complexes, which meet specific criteria, should be licensed for short-term rentals.
