Cyprus’ short-term rental market is heading into a softer tourism season, with occupancy rates and prices both down by 10% to 15% from a year earlier, according to industry representatives.
Occupancy And Prices Decline
Speaking to Alpha TV, Konstantinos Karakontis, president of the Self-Service Tourist Accommodation Association (Stek), said demand has slowed compared with last year’s strong season.
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“Occupancy is lower by 10% to 15% and prices are also reduced by 10% to 15%,” he said.
Licensing Remains A Challenge
Karakontis said the number of short-term rental properties listed on digital platforms has remained broadly stable at between 12,000 and 15,000, but only around 8,500 are licensed by the Deputy Tourism Ministry.
He said the sector’s main challenge is the absence of a direct link between the official licensing register and platforms such as Airbnb and Booking.com, allowing some unlicensed properties to remain listed.
According to Karakontis, proposed legislative changes would enable platforms to verify registration numbers in real time and remove listings operating without valid licences.
Calls For Better Coordination
Karakontis also questioned coordination between public authorities following the collapse of an apartment building in Yermasoyia, where one of the units had reportedly been used for short-term accommodation.
He argued that authorities should share information on buildings deemed unsuitable for use rather than introduce additional administrative requirements for operators.
Housing Debate
Responding to criticism that short-term rentals are driving up housing costs, Karakontis said most growth in the sector has been concentrated in tourist areas, including Famagusta and Paphos. He added that stronger enforcement against illegal rentals should remain the industry’s priority.
