20.03.2024
2% of residential properties in Cyprus are rented through Airbnb , raising concerns about affordability and regulatory oversight. This data, focused solely on Airbnb listings, reflects a broader trend of real estate being repurposed as an investment asset rather than meeting housing demand.
There are a staggering 8,510 homes listed on Airbnb. It is estimated that the total number of residential properties used for tourism purposes throughout the country could be as high as 16,000.
This increase in short-term rental properties is highlighted by the fact that only about 6,700 properties are officially registered with the Ministry of Tourism.
Airbnb’s financial appeal is clear: investor returns vary significantly depending on the location of the rental property. AirDNA’s analysis shows that in popular tourist destinations such as Famagusta and Paphos, annual accommodation income can range from €13,000 to €63,000. For example, in Ayia Napa and Protaras, average annual incomes increased significantly by 27% and 43% respectively compared to the previous year, reaching levels of up to €62,900.
In January 2020, a new law came into force that requires those wishing to rent out their property as self-catering accommodation or short-term holiday accommodation to obtain a licence.
The new Law 9(I)/2020 amended the existing “Law on the Regulation of the Establishment and Operation of Hotels and Tourist Facilities of 2019 (N. 34(I)/2019).” Once received, the license is valid for three years and is automatically renewed upon payment of the specified fee. Violators of the law face a fine of 2,000 euros, and repeat offenders face a fine of 4,000 euros.
