**Short-Term Rentals in Cyprus Experience Decline in Occupancy and Prices**
Short-term tourist accommodation operators in Cyprus are currently navigating a challenging season, with occupancy rates and rental prices experiencing a notable decline of up to 15% compared to last year. This downturn has raised concerns within the industry, prompting discussions about the future of short-term rentals on the island.
In an interview with Alpha TV, Konstantinos Karakontis, president of the Self-Service Tourist Accommodation Association (Stek), highlighted that the demand for short-term rentals has slowed significantly compared to the previous year's robust performance. Despite this decline, he noted that the market conditions have improved when compared to the situation in 2024.
"This year is certainly moving at a slower pace compared with last year," Karakontis stated. He elaborated that occupancy rates have decreased by 10% to 15%, accompanied by a similar reduction in prices within the sector.
The number of active properties listed on digital rental platforms has remained relatively stable over recent years, fluctuating between 12,000 and 15,000. However, only approximately 8,500 of these properties currently possess an official license from the Deputy Tourism Ministry. This discrepancy has raised concerns about the regulatory framework governing short-term rentals.
Karakontis pointed out that one of the primary challenges facing the sector is the lack of a direct connection between the official licensing register and popular rental platforms such as Airbnb and Booking.com. To address this issue, he mentioned that legislative changes are being proposed to enable real-time verification of registration numbers. This would allow rental platforms to remove listings that do not have valid licenses, thereby enhancing compliance within the industry.
"When the registration number is not the real one, the platforms can at the same time delete the property from the platform," he explained, emphasizing the need for stricter enforcement of licensing regulations.
In light of recent events, including the collapse of an apartment building in Yermasoyia, where one of the units was reportedly used for short-term rentals, Karakontis expressed concerns about communication between state authorities. He raised questions about why information regarding the building's condition, held by the Cyprus Land Development Corporation (EOA), was not shared with tourism authorities.
"The question was simple, why didn’t the EOA give this difference further down?" he asked, suggesting that authorities should consider publishing lists of buildings deemed unsuitable for occupancy rather than imposing additional administrative requirements on rental operators.
Addressing criticisms that short-term rentals have exacerbated housing shortages and contributed to rising rents, Karakontis defended the sector, asserting that its growth has primarily been concentrated in tourist areas such as Famagusta and Paphos. He acknowledged that while visitor behavior remains positive, managing a large number of dispersed properties presents its own set of challenges.
"The only thing that really needs to be cracked down on is illegal rentals," he concluded, indicating that the focus should be on ensuring compliance and addressing illegal operations rather than placing undue blame on the entire short-term rental sector.
As the season progresses, stakeholders in the short-term rental market will be closely monitoring occupancy trends and pricing strategies, seeking ways to adapt to the evolving landscape of tourism in Cyprus.