Cyprus real estate agents’ council requests the government to ban short-term rentals

The government has been strongly urged to impose a ban on short-term rentals, especially those advertised on websites like Airbnb, by the Cyprus Real Estate Agents Registration Council this week. The purpose of this action is to address the growing rental costs, which are getting more and more out of reach for many locals.

The council's request is a reaction to rising worries about the short-term rental industry's financial effects, which they claim are driving up housing costs and lowering the supply of long-term renting choices. The council notes that this tendency is driving up rental costs to unaffordable levels for both homes and flats.

"In a time when Cypriots are struggling with inflation and high interest rates, which make home ownership out of reach for many, more people are being forced to rent," the council stated. "As demand for rental housing increases, the supply of available properties is failing to keep up, leading to rental prices that are often equivalent to a full month's salary".

Marinos Kineyirou, the president of the Cyprus Real Estate Agents Registration Council, emphasized the severity of the situation. He noted that the short-term rental market is removing thousands of homes and apartments from the long-term rental pool, exacerbating the housing crisis. Despite previous warnings about the negative effects of this trend on both affordable housing and tourism quality, Kineyirou said that the issues have yet to be adequately addressed.

He also highlighted the compounded challenge of ongoing inflation and high interest rates, which have further complicated home ownership and driven more people towards renting. He warned that the persistent imbalance between rental property supply and demand is leading to prohibitively high rental costs.

Based on global models, Kineyirou recommended Cyprus take inspiration from Barcelona, which intends to outlaw short-term rentals beginning in 2029. He made the case that taking firm action is required to address these problems, stressing that wishful thinking is insufficient.

"Only by banning short-term rentals can we hope to increase the availability of rental properties and reduce rental prices across the board," said Kineyirou.

The council has also voiced concerns over the possible harm that short-term rentals may do to Cyprus' tourist industry. They pointed to cases where houses' conditions were misrepresented in short-term rental listings, which could harm the island's reputation as a travel destination.

The council suggested restricting short-term rental licences to hotels and organised housing complexes that fulfil particular requirements in order to address these issues.

The government is now considering a proposal by the Cyprus Real Estate Agents Registration Council, which should result in more accessible and transparent rental housing options.