Cyprus Real Estate Registration Council Calls for the Abolition of Short-Term Rental System, Following Barcelona's Example

The Cyprus Real Estate Registration Council (SEK) has called on the authorities of the Republic of Cyprus to abolish the short-term rental system. The short-term rental system deprives the real estate market of thousands of houses and apartments that could be offered for long-term rent. "This is the only way to reduce [long-term rental] prices," said SEK President Marinos Kinegiru.

Rising inflation and high mortgage interest rates prevent a significant portion of Cyprus residents from buying homes and apartments, forcing them to rent instead.

"While demand for rental housing is increasing, the supply of long-term rental properties is much lower, leading to extremely high rental prices that, in many cases, are equivalent to a month's salary," explains SEK.

The short-term rental market on Cyprus poses serious competition to the long-term rental market, where property owners can make more profit in a shorter period. Properties are listed on short-term rental portals, with the most popular being Airbnb and Booking.com.

"Daily rentals deprive the Cypriot real estate market of thousands of houses and apartments that could be offered for long-term rent," believes SEK President Marinos Kinegiru.

In his opinion, if the government of the Republic of Cyprus does nothing, the problem will only grow.

"We, real estate professionals, know that many buyers and investors purchase homes in the primary and secondary housing markets to rent them out short-term," Kinegiru explained. "This means that the supply will never meet the demand, and rental prices will remain unaffordable for a large portion of the population who cannot afford to buy a home."

Cyprus could follow Barcelona's example, where the city council announced the abolition of the short-term rental system starting in 2029. This affects about 10,000 properties in Barcelona that are currently rented short-term.

"Problems are not solved by wishful thinking, but by action. It's time for the authorities to take responsibility because society is suffering. Only by banning daily rentals can we increase the number of properties [in the long-term rental market] and reduce rental prices in all cities," concluded SEK President.

The council recommended allowing daily rentals only in hotels and hotel-type apartments that have undergone the licensing process.