04.06.2024
President of the Cyprus Real Estate Agents Registration Board Marinos Kineiro on Monday called for stricter regulation of short-term rentals in Cyprus. Marinos Quineiro pointed to the adverse impact on the economy, especially the tourism and real estate sectors, stressing the need for government intervention.
“The way short-term rentals currently operate is causing many problems in key sectors of the economy such as tourism and property. The state is losing tax revenue, and the consequences are affecting society and citizens,” Quineiro said.
Marinos Quineiro noted that short-term rentals, especially apartments, lead to higher rental prices by reducing the supply of long-term rental properties. “This is one of the reasons for the sharp increase in rental prices, as a significant number of properties are taken off the market during periods of high demand due to high interest rates and inflation, making it difficult to buy a home,” he explained.
Marinos Kineiro also pointed out that rental prices have risen sharply following the massive adoption of short-term rentals in Cyprus. The lack of regulation of short-term rentals leads to a number of problems, from misleading advertising to poor property conditions, which damage Cyprus’ reputation in the tourism sector.
“Due to our involvement in the real estate market, we daily witness various situations that damage the brand of Cypriot tourism and spoil the image of our country. There are cases where apartment owners do not provide an accurate description of the buildings in which their properties are located, or even use misleading photographs to lure tenants. When tourists arrive, they often find that what they rented is not what was advertised,” he said.
Kineiro stressed the urgency of the situation, citing a statement from a representative of the Cyprus Chamber of Commerce ( Keve ) in February, which stated that “we have exceeded 6,700 accommodation units and bed capacity has exceeded 30,000.” However, he noted that a simple search on short-term rental platform Airdna revealed more than 15,000 active short-term rental properties in Cyprus, indicating a significant gap between registered and actual short-term rental properties.
“The significant discrepancy between the number of registered self-catering accommodation properties and the number of properties available for short-term rentals on the platforms results in significant losses in government tax revenue,” explained Quineiro .
He also called on the government to establish operating rules and control mechanisms for registered properties, as well as identify unlicensed properties.
“The state and government must finally close the loophole that works against citizens and professionals in the real estate and tourism sectors,” he called.
Finally, Quineiro proposed that short-term rental licenses should only be issued to hotels and organized housing complexes based on certain parameters and criteria.
