09.02.2024
According to Yiannis Kotsias , general manager of Phaedrus Living , Protech’s home rental platform , short-term property rentals in Cyprus are growing in popularity, quickly becoming the mainstay of accommodation choice for travelers and locals alike. “This is a natural progression given the global momentum for short-term rentals, and Cyprus, as a tourist destination, is no exception,” Kotzias said .
Moreover, he explained that the growth of the short-term rental real estate market is being stimulated by the investment community: an increasing number of investors are purchasing or even building houses and apartments to profit from this use of real estate.
“The dynamic nature of the market is reflected in the statistics provided by the AirDNA platform ,” he said, noting that by the end of January 2024 the number of active short-term rental properties in Cyprus exceeded 15,400. “The number of properties available for short-term rental is increasing annually in major cities of Cyprus,” he added, noting that Nicosia saw an increase of 25%, followed by Limassol with 17%, Larnaca with 9% and Paphos with 3%.
According to Kotzias , based on reasons identified by the company itself, property owners and investors are attracted to short-term rentals for a number of reasons, one of which is the increased financial benefits that are typically higher than long-term rentals. “Flexibility, such as the ability to increase daily rental rates during periods of peak demand, is just one example of the benefits this method offers.”
In addition, he reported that according to AirDNA , the average annual income from living in Nicosia is estimated at 13,500 euros, in Limassol at 26,200 euros, in Larnaca at 18,300 euros and in Paphos at 24,800 euros.
“Yields increase significantly from properties located in the country’s popular summer destinations such as Protaras and Ayia Napa , where average annual incomes are €61,300 and €46,200 respectively. On the other side of Cyprus, the sunset view of Peyia brings short-term rental property owners an average annual income of €55,800.”
Another advantage of short-term rentals is the ability for investors to use their property at any time. “For example, an investor can plan their vacation by simply blocking the dates they want to use,” he said.
He also mentioned that to reduce the risk of investing in short-term rentals, many investors choose to store properties in different locations to better address seasonality in the tourism sector. Kotzias explained that investor returns can be increased through strategic marketing that provides incentives and, of course, positive guest reviews.
“As tourism is expected to continue to grow globally, it is clear that increased demand for short-term rentals from tourists and growing investment activity are both strengthening and reshaping this new industry, creating conditions for intense competition,” Kotzias added .
“In such an environment, it is imperative for property owners and investors to keep pace with developments, continue to position their properties among the choice of holidaymakers and increase their income,” he concluded.
