Cyprus continues to strengthen its position in the European short-term rental market. In the summer of 2026, demand for tourist apartments, villas, and holiday homes remains high, while prices are rising significantly alongside an increase in bookings.
According to new data from Airbnb, the island maintains a strong position among Europe’s most popular tourist destinations. Cyprus offers competitive prices while successfully competing with more expensive markets such as Switzerland, Spain, and the Netherlands.
Experts note that the country’s tourism sector is gradually evolving. While Cyprus was once primarily known for affordable holidays and beach tourism, the island is now increasingly attracting travelers with higher income levels. This creates favorable prospects for the continued growth of both the hospitality industry and the real estate market.
Summer Rental Prices Rise by More Than 30%
The average short-term rental rate in Cyprus over the past 12 months—from May 2025 to May 2026—stood at €113.80 per night. By comparison, the European average reached €131.59, while the median value was €112.16. As a result, Cyprus remains a relatively affordable destination while maintaining strong demand.
The most significant price increases occur during the summer months. Between June and August, average rental rates rise by 31.8% compared to the rest of the year. By this measure, Cyprus ranks eighth in Europe. The average nightly rate during the peak season reaches €135.11, compared to €93.95 during the remaining months. This trend indicates that property owners can confidently increase prices thanks to sustained tourist demand.
Cyprus Outpaces Spain and Italy in Seasonal Price Growth
Although Cyprus does not experience price spikes as dramatic as those seen in Greece or Croatia, the island’s figures remain very strong. In Greece, summer prices rise by 54.9%, with the average nightly rate reaching €174 compared to the annual average of €112.64. In Croatia, prices increase by 37.6%, reaching €154.20 per night compared to the annual average of €112.
Against this backdrop, Cyprus appears to be a more stable market. Nevertheless, its 31.8% increase still exceeds the figures recorded in Spain, where seasonal growth stands at 29.8%, and Italy, where it reaches 18%.
In terms of seasonality, Cyprus is already approaching Portugal, where summer rental rates reach around €160 per night compared to €117.27 during the rest of the year.
Paphos Remains the Main Hub for Tourist Rentals
Paphos continues to be Cyprus’s most popular destination for short-term rentals. According to the national register of short-term rental properties, the region has 4,231 registered units. It is followed by Famagusta with 1,791 properties, Larnaca with 1,407, Limassol with 1,267, and Nicosia with 457.
Paphos leads not only in the number of available properties but also in accommodation prices. The average rental rate there stands at €263.81 per night. Protaras follows with an average nightly rate of €238.26. These high prices confirm that the resorts attract more affluent tourists willing to pay for quality accommodation, proximity to the sea, and well-developed infrastructure.
July Will Be the Peak Month of the Season
Booking data indicates that July will be the strongest month of the summer season. Demand for rental accommodation in July has increased by 4.1% compared to the same period last year. In August, demand is expected to rise by a further 2.6%.
June, however, has been less successful. The number of bookings declined by 4.6% compared to last year.
Overall demand for short-term rentals between June and August 2026 was 0.4% higher than during the same period a year earlier. A similar trend can be observed across other European countries. Weaker demand in June has also been recorded in France, Greece, Portugal, and Spain. Increasingly, tourists are postponing their trips until July and August, when all tourism facilities are fully operational and the main summer events take place.
Cyprus Among Europe’s Most Attractive Rental Markets
Despite rising prices, Cyprus remains considerably more affordable than Europe’s most expensive destinations. Monaco tops the ranking, where the average short-term rental rate reaches €417 per night. It is followed by Iceland at €213, Andorra at €189, Switzerland at €184, and the United Kingdom at €141 per night.
By contrast, Europe’s most affordable rental markets remain North Macedonia, where the average rate is €39.80 per night, Kosovo at €41.60, Moldova at €45.50, and Serbia at €51.17.
What This Means for Cyprus
Rising prices and strong booking levels demonstrate that Cyprus is increasingly positioning itself as a high-quality Mediterranean tourism destination. The growing number of higher-spending visitors supports not only the rental market but also the island’s broader economy—from restaurants and retail businesses to services and real estate.
Against the backdrop of ongoing tourism infrastructure development, the opening of new hotels, marina upgrades, and expanding air connectivity, experts expect demand for short-term rentals in Cyprus to remain strong in the coming years. Paphos, Protaras, Larnaca, and Limassol are expected to maintain particularly strong positions as they continue to attract both holidaymakers and investors from around the world.