Affordable long-term property rental is one of the biggest challenges facing Cyprus today. Demand on the island far outstrips supply. At the same time, properties coming onto the market are often overpriced. The problem is exacerbated by the onset of the tourist season, when many owners have transferred their properties for short-term rental to tourists.
On Thursday 4 July, the Council for the Registration of Estate Agents called on the Cypriot government to take measures to address the huge problems caused by the uncontrolled increase in the number of daily rentals in vital sectors of the Cypriot economy.
In particular, the Agency stated that this situation is of alarming proportions and is largely responsible for the increase and maintenance of the prices of rented houses and apartments. At a difficult time for Cypriot society, when inflation and high interest rates make it difficult or impossible to buy a home, more and more islanders are opting to rent.While the demand for such properties is increasing, the number of offers remains at the same level, resulting in rental rates at extremely high levels, in many cases equivalent to some people's monthly salaries.
Daily rentals are depriving the Cypriot property market of thousands of houses and apartments that could be offered on a long-term rental basis. We have warned many times about the problems caused by the lack of affordable accommodation in Cyprus and the quality of the tourist product.Unfortunately, we have not been listened to. As long as the government remains inactive, the problem will only grow. We are well aware that many buyers/investors are buying accommodation on the island for daily rental. Unless this trend is curbed, the supply in the long term rental market will never meet the demand. As a result, rental prices will remain unaffordable for a large section of the population who cannot afford to buy property," said Marinos Kinegirou, head of the Real Estate Registration Board.
Kinegirou urged the government to follow Barcelona's example. Recall that in this city will be banned the rental of daily accommodation to tourists. By 2028, the Barcelona authorities will have cancelled the licences for 10,101 apartments currently rented out as short-term rentals.
Problems are not solved by wishful thinking, but by action, and it is time for those in charge to take responsibility, because society is suffering. Only by banning daily rentals will the supply of property increase and we will see a reduction in rental prices in all cities," Kinegiru continued.
Finally, the head of the Real Estate Registration Board pointed to the significant negative impact on Cyprus' tourist image. According to him, it is not uncommon for owners of serviced apartments not to give a full picture of the condition of the blocks in which their properties are located, or to give misleading information. Therefore, the Agency strongly recommends that only hotels and organised residential complexes should be licensed for daily rentals based on specific parameters and criteria.