Short-term rentals in Cyprus have significantly influenced apartment prices, especially in major coastal cities. This phenomenon has led to a sharp increase in rental costs, creating challenges for long-term tenants and students.

Real Estate Market Situation

According to the president of the Cyprus Real Estate Agents Association, Marinos Kineyirou, short-term rentals have become the main driver of rising apartment prices in the country's coastal cities. He noted that the lack of affordable housing is particularly acute among students who struggle to find suitable rental options. Kineyirou emphasized that the authorities should consider limiting or completely banning short-term rentals to improve the market situation.

Sharp Price Increase in Limassol

Limassol remains the most expensive city for renters in Cyprus. As the new academic year approaches, rental prices for one-bedroom apartments in this city range from €1,000 to €1,100 per month. In comparison, similar apartments in the capital, Nicosia, are significantly cheaper, costing between €600 and €700. In Larnaca and Paphos, one-bedroom rentals range from €500 to €600 per month.

Two-bedroom apartments in Limassol are also much more expensive than in other cities. Renting such apartments in this city costs €1,400–1,500 per month, while in Nicosia and Paphos, prices are €800–900, and in Larnaca, €700–800.

Key Reasons for Price Increases

Marinos Kineyirou attributes the high prices in Limassol to increased demand from foreign workers, particularly those in the IT sector. He also pointed out that short-term rentals have led to a shortage of housing suitable for long-term tenants and students.

"Much of the housing that was previously intended for long-term rentals is now being used for short-term tourist purposes," Kineyirou said. He added that many property owners are converting their apartments for tourist use, further reducing the availability of housing for local tenants.

Necessary Measures

Marinos Kineyirou called for a review of the current short-term rental practices. In his opinion, it is necessary to seriously consider limiting or completely stopping short-term rentals. This would prevent further deterioration of the real estate market situation and ensure affordable housing for tenants and students.