Cypriot and foreign investors are actively investing their money in real estate, which can be rented out on a short-term basis. The main reason is the strong demand for such properties from local and visiting tourists.
This is a natural progression given the global momentum of short-term rentals. Cyprus, being a tourist destination, is no exception," say the experts.
In particular, there is a trend on the island where an increasing number of investors are purchasing or even building houses and apartments to profit from such residential use. This fact is confirmed by statistics that state that by the end of January 2024, the number of active short-term rental properties in Cyprus exceeded 15.4 thousand units.
The number of properties available for short-term rentals is increasing annually in all major cities of Cyprus. For example, in Nicosia for the last year this indicator has increased by 25%, in Limassol - by 17%, in Larnaca - by 9%, in Paphos - by 3% - experts say.
By the way, property owners and investors are attracted to short-term rentals in Cyprus for several reasons. The most significant is the financial benefit, which, as a rule, is much higher than that of owners who rent out their assets in long-term rent.
The ability to increase daily rental rates during periods of peak demand is just one of the many benefits. The average annual income in Nicosia is estimated at 13.5 thousand euros, in Limassol - 26.2 thousand euros, in Larnaca - 18.3 thousand euros, and in Paphos - 24.8 thousand euros. At the same time, the yield increases significantly from real estate located in Protaras and Ayia Napa. Up to 61.3 thousand euros and 46.2 thousand euros, respectively - experts note.
Interestingly, to reduce the risk of investing in short-term rentals, many owners prefer to buy properties in different locations in Cyprus to better address the problem of seasonality in the tourist sector, which affects properties in tourist locations. Many of them also prefer to turn to specialized management companies to oversee the properties and cater to their client's needs when necessary.
These companies essentially relieve property owners and investors of the hassle associated with the operational processes associated with short-term rentals, and their expertise contributes to the owners' profits. As tourism is expected to continue to grow worldwide, it is clear that the increased demand for short-term rentals from tourists and growing investment activity will both strengthen and change this new industry, creating conditions for intense competition. In the new realities, property owners and investors must keep up with the times," the experts concluded.