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Short-term rental properties are increasing in popularity in Cyprus, quickly becoming a mainstay in the accommodation choices of both travellers and locals, according to Yiannis Kotzias, general manager of operations at Phaedrus Living, a proptech residential rental platform.<\/p>\n
\u201cThis is a natural progression considering the global momentum short-term rentals have gained, and Cyprus, being a tourist destination, is no exception,\u201d Kotzias said in an analysis piece released this week.<\/p>\n
Moreover, he explained that the growth of the short-term rental property market has been fueled by the investment community, with a growing number of investors acquiring or even constructing houses and apartments to generate returns through this utilisation of real estate.<\/p>\n
\u201cThe dynamic nature of the market is reflected in statistics provided by the AirDNA platform,\u201d he said, noting that by late January 2024, active short-term rental properties in Cyprus exceeded 15,400.<\/p>\n
\u201cThe number of available properties for short-term rental increased annually in major cities of free Cyprus,\u201d he added, noting that Nicosia saw a 25 per cent rise, followed by Limassol with 17 per cent, Larnaca with 9 per cent, and Paphos with 3 per cent.<\/p>\n
According to Kotzias, based on the reasons identified by the company itself, property owners and investors are attracted to short-term rentals for a number of reasons, one of them being the increased financial benefit, which is generally higher than that of long-term rentals.<\/p>\n
\u201cThe flexibility, such as the ability to increase daily rental prices during peak demand periods, is just one example of the advantages this method offers,\u201d he stated.<\/p>\n
In addition, he said that the average annual income for accommodation in Nicosia is estimated at \u20ac13,500, in Limassol at \u20ac26,200, in Larnaca at \u20ac18,300, and in Paphos at \u20ac24,800, according to AirDNA.<\/p>\n
Furthermore, he said that \u201creturns significantly increase in properties located in popular summer destinations of the country, such as Protaras and Ayia Napa, where the average annual income is \u20ac61,300 and \u20ac46,200, respectively\u201d.<\/p>\n
\u201cOn the other side of Cyprus, the sunset view of Peyia yields an average annual income of \u20ac55,800 for short-term rental property owners,\u201d he added.<\/p>\n
Another advantage of short-term rentals, he continued, is the flexibility for investors to use their property whenever they want.<\/p>\n
\u201cFor instance, an investor can plan their own vacations by simply blocking the dates they wish to use,\u201d he said.<\/p>\n
He also mentioned that in order to mitigate the risk of investing in short-term rentals, many investors choose to keep properties in different locations in order to better manage the issue of seasonality in the tourist sector, which affects properties in tourist hotspots.<\/p>\n
Kotzias explained that investor returns can be increased with strategic marketing, providing a boost, and certainly through positive guest reviews.<\/p>\n
In addition, he said that when taking into account services like cleaning coordination and addressing other needs that may arise, such as repairs, maintenance, and gardening, it\u2019s understandable why investors are turning to specialised management companies to handle these for them.<\/p>\n
\u201cThese companies essentially free property owners and investors from the hassle of operational processes related to short-term rentals, while their expertise contributes to increasing returns on their properties,\u201d he said.<\/p>\n
\u201cWith tourism expected to further develop globally, it is evident that the increased demand for short-term rentals by tourists and the growing investment activity both strengthen and change this new industry, creating conditions for intense competition,\u201d Kotzias added.<\/p>\n
\u201cIn such an environment, it is crucial for property owners and investors to keep up with the evolution, continue to position their properties high in the choices of vacationers, and increase their income,\u201d he concluded.<\/p>\n
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\nCyprus Mail on Google News<\/p>\n","protected":false},"excerpt":{"rendered":"
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.<\/p>\n
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 \u20ac13,500, Limassol at \u20ac26,200, Larnaca at \u20ac18,300, and Paphos at \u20ac24,800. Higher returns are noted in popular summer destinations like Protaras and Ayia Napa, with average annual incomes of \u20ac61,300 and \u20ac46,200, respectively, and in Peyia, known for its sunset views, with an average income of \u20ac55,800.<\/p>\n
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.<\/p>\n
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.<\/p>\n","protected":false},"author":3,"featured_media":2894,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"Default","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4],"tags":[218,186,357,33,426,3,356,203,250,157,24,406,130,284,287,238],"class_list":["post-2893","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cyprus","tag-ayia-napa","tag-business","tag-businesstop","tag-companies","tag-competition","tag-cyprus","tag-cyprus-business-news","tag-environment","tag-google","tag-larnaca","tag-limassol","tag-nicosia","tag-paphos","tag-property","tag-real-estate","tag-tourism"],"acf":{"keyphrase":"","keywords":"","sourceimg":"","country-category":""},"yoast_head":"\n