Short-term rental properties are becoming increasingly popular in Cyprus, with both travelers and locals opting for them. Yiannis Kotzias, the general manager of operations at Phaedrus Living, has stated that this trend is in line with the global increase in short-term rentals, especially given Cyprus’s status as a tourist destination. The growth of this market is driven by investors purchasing or building properties to rent out short-term, seeking higher returns compared to long-term rentals.
Statistics from AirDNA show that as of late January 2024, there were over 15,400 active short-term rental properties in Cyprus. The number of these properties has increased annually in major cities: Nicosia by 25%, Limassol by 17%, Larnaca by 9%, and Paphos by 3%. The average annual income from short-term rentals varies by city, with Nicosia at €13,500, Limassol at €26,200, Larnaca at €18,300, and Paphos at €24,800. Higher returns are noted in popular summer destinations like Protaras and Ayia Napa, with average annual incomes of €61,300 and €46,200, respectively, and in Peyia, known for its sunset views, with an average income of €55,800.
Short-term rentals offer flexibility to property owners and investors, including the ability to adjust prices during peak demand and to use the property for personal vacations. To mitigate investment risks and manage seasonality in tourism, investors often diversify property locations. Strategic marketing and positive guest reviews can enhance investor returns.
Investors are increasingly relying on specialized management companies to handle operational tasks like cleaning, maintenance, and repairs, which can improve returns on investment. With the expected growth in tourism, the demand for short-term rentals is anticipated to rise, leading to a competitive market where property owners and investors must adapt to maintain and increase their income.
