26.08.2024
In recent years, the Cyprus apartment rental market has faced a serious problem – rising prices, especially in cities such as Limassol , Nicosia, Larnaca and Paphos. The main reason for this phenomenon is the active use of short-term rental of residential property through special platforms.
The large number of apartments available for short-term rental significantly reduces the supply of residential properties available for long-term rental, causing prices to rise sharply. This creates significant problems for both local residents and visitors, including students and foreign workers.
The government should consider introducing restrictions or a complete ban on short-term rentals to address the shortage of residential properties. This would not only help stabilize the long-term rental market, but would also protect organized tourist complexes that are losing customers due to competition from private apartment owners.
Today, almost anyone can turn their apartment into residential real estate for tourists, and the question arises: who controls the zoning and licensing process? The lack of strict regulation in this area exacerbates the problem of accessibility of residential real estate and negatively affects the market.
Addressing the affordability of residential rentals requires active government intervention. Regulating short-term rentals can reduce pressure on the long-term rental market and bring back affordable prices for locals, students and expatriates. Introducing clear regulations, zoning controls and licensing will be an important step towards stabilising the Cyprus property market.
Thus, in order to cope with the shortage of apartments for long-term rental and reduce rental rates, it is necessary to reconsider the approach to short-term rentals, limiting their volume or establishing stricter requirements for landlords.
