Cyprus ranked second in the European Union for the growth rate of overnight stays in short-term rental accommodation in the third quarter of 2025. In particular, the number of tourist overnight stays on the island rose by 19.4% compared to the same period of the previous year. Only Malta posted a higher result, with growth reaching 24%. This confirms that Cyprus has not only recovered its tourism after the pandemic years, but has also confidently entered a phase of sustained growth.
Overall across the EU, the increase in overnight stays in short-term rentals amounted to 8.7%, but Cyprus significantly outperformed the average, overtaking such popular destinations as Sweden and Greece. This suggests that the island is increasingly being chosen by tourists who prefer apartments and villas to traditional hotels.
A booking boom and a new tourism record
Booking data via Airbnb, Booking, and Expedia show a sharp surge in demand for short-term rentals in Cyprus. In the fourth quarter of 2025, the number of bookings exceeded 3 million, whereas in the second quarter, outside the peak summer season, there were about 2 million. At the beginning of 2025, the figures were at under 1 million bookings, highlighting the scale of growth within a single year.
This surge is linked not only to beach tourism, but also to the development of year-round destinations. Limassol, Paphos, and Larnaca are increasingly chosen for winter holidays, remote work, and long vacations, which supports demand for apartments at any time of year.
How short-term rentals are reshaping Cyprus’s housing market
The rapid growth of short-term rentals is leading to fewer and fewer apartments remaining on the long-term rental market, especially in coastal and tourist areas. This is already affecting prices, which continue to rise, creating difficulties for local residents and workers in the tourism sector. In 2025, rental rates in popular areas of Limassol and Paphos hit new highs, and in early 2026 the trend is continuing.
For property owners, short-term rentals remain significantly more profitable than traditional long-term leases, which encourages a further shift of apartments into the tourist segment and worsens the shortage of affordable housing.
European rules and new requirements from 2026
At the institutional level, the European Union has already responded to the rapid growth of short-term rentals. Parliament adopted changes to legislation on tourist accommodation that create a unified mechanism for collecting and exchanging data on short-term rentals. The new EU-wide regulation will enter into force on May 20, 2026 and will also apply to Cyprus.
This means public authorities will obtain a more accurate picture of the market, and property owners will have to operate under more transparent conditions. The new rules are expected to help balance the interests of the tourism business and local residents, as well as curb the further growth of the housing shortage.
Cyprus at the heart of Europe’s tourism map
The overall picture across Europe shows that short-term rentals are becoming the main accommodation format for millions of tourists. Summer 2025 set a record for the number of overnight stays via online platforms, and Cyprus has firmly established itself among the fastest-growing destinations. For the island, this means an inflow of investment, rising tourism revenues, and at the same time new challenges related to housing affordability and market regulation in 2026.