Two per cent of dwellings rented through Airbnb
An alarming 2% of dwellings in Cyprus are now listed on Airbnb, raising concerns regarding housing availability and regulatory oversight.
This data, exclusively focusing on Airbnb listings, reflects a broader trend of properties being repurposed as investment assets rather than addressing housing demands.
With a staggering 8,510 homes listed on Airbnb alone, estimates suggest that the total number of residences utilized for tourism purposes nationwide could reach up to 16,000.
This surge in short-term rental properties is underscored by the revelation that only approximately 6,700 accommodations are officially registered with the Deputy Ministry of Tourism.
The financial appeal of Airbnb is apparent, with earnings varying significantly by location. Analysis conducted by AirDNA reveals that in popular tourist destinations such as Famagusta and Paphos, annual earnings per accommodation can range from €13,000 to €63,000.
For example, in Ayia Napa and Protaras, average annual incomes experienced remarkable increases of 27% and 43% respectively compared to the previous year, reaching levels of up to €62,900.
Regulating Airbnb and other rentals
In January 2020 a new law came into force that requires those wishing to rent their property as self-catering accommodation and short-term holiday lets to obtain a license.
The new law 9(I)/2020 amended the current ‘Law on the Regulation of Establishment and Operation of Hotels and Tourist Accommodations of 2019 (N. 34(I)/2019)’ and is designed regulate the operation and licensing of self-catering accommodation in Cyprus.
Once obtained, the license is valid for three years and is automatically renewed on payment of the specified fee.
Those violating the law face a fine of €2,000 and repeat offenders €4,000.
Further information on licensing may be found at How to get a license to rent your property.
Source: Cyprus Property News