The Impact of Short-Term Rentals on Cyprus’ Housing Market

The growth of the short-term rental market in Cyprus has significantly impacted apartment prices, particularly in major coastal cities. This phenomenon has led to a sharp increase in rental costs, posing challenges for long-term tenants and students.  

Housing Market Situation

According to Marinos Kineyirou, president of the Cyprus Real Estate Agents Association, short-term rentals have become the primary driver of rising apartment prices in the country’s coastal cities. He noted that the shortage of affordable housing is particularly acute for students and hinders their ability to find suitable rental options.   

Soaring Prices in Limassol

Limassol remains the most expensive city for renters in Cyprus. As the new academic year approaches, the rent for a one-bedroom apartment in the city ranges from €1,000 to €1,100 per month. In comparison, similar apartments in the capital, Nicosia, are significantly cheaper, ranging from €600 to €700. In Larnaca and Paphos, the rent for a one-bedroom apartment ranges 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, the price is €800–900 and in Larnaca, €700–800.

Reasons for Rising Prices

Marinos Kineyirou attributes the high prices in Limassol to increased demand from foreign workers, especially those in the IT sector. He also pointed out that short-term rentals have led to a shortage of suitable housing for long-term tenants and students. “Many properties previously used for long-term rentals are now being used for short-term tourism,” Kineyirou said. He added that many landlords are converting their apartments for tourism, further reducing the availability of housing for local renters.