Cyprus Among EU Leaders in Short-Term Rental Growth

Cyprus has firmly established itself among the leaders of the European Union in terms of short-term rental growth. In the third quarter of 2025, the island ranked second in the EU for the increase in tourist overnight stays in short-term accommodation, recording a year-on-year growth of 19,4%. Only Malta posted a higher result, with growth reaching 24%.

This dynamic confirms that rental property in Cyprus has not only fully recovered from the pandemic years but has also entered a phase of sustainable long-term growth, significantly outperforming the EU average of 8,7%.

Apartments and Villas Replacing Hotels

Cyprus has outpaced popular tourist destinations such as Greece and Sweden in terms of growth. This reflects a shift in traveler preferences, with tourists increasingly choosing apartments and villas over traditional hotels.

Short-term rental accommodation in Cyprus is becoming the dominant form of lodging thanks to greater privacy, flexible stay options, and comfortable living conditions for families, digital nomads, and long-term visitors.

Record Bookings via Airbnb and Booking

According to data from major online booking platforms — Airbnb, Booking, and Expedia — more than 3 million short-term rental bookings were recorded in Cyprus in the fourth quarter of 2025. By comparison, the figure stood at around 2 million in the second quarter and below 1 million at the beginning of 2025.

This surge is not driven solely by the summer tourist season. Limassol, Paphos, and Larnaca are increasingly developing as year-round destinations, popular for winter stays, remote work, and long-term living, further supporting demand in the rental property market.

How Short-Term Rentals Are Affecting Cyprus’s Housing Market

Rapid growth in short-term rentals is reducing the supply of properties available for long-term rental, particularly in coastal and tourist areas. This trend is already being reflected in rising prices.

In 2025, rental rates in Limassol and Paphos reached record highs, and the upward trend has continued into early 2026. For property owners, short-term rentals in Cyprus remain significantly more profitable than traditional long-term leasing, further intensifying the shortage of affordable housing.

New EU Rules for Short-Term Rentals from 2026

The European Union has already responded to the rapid expansion of the short-term rental sector. A new EU-wide regulation introduces a unified system for registration, data collection, and information exchange related to tourist accommodation. The regulation will come into force on May 20, 2026, and will also apply to Cyprus.

The new requirements are expected to increase transparency in the rental property market, enable more accurate regulation by authorities, and help balance the interests of the tourism industry, investors, and local residents.

Cyprus as One of Europe’s Most Promising Rental Markets

The record-breaking summer of 2025 confirmed that short-term rental accommodation has become the leading lodging format across Europe, with Cyprus ranking among the fastest-growing markets. For investors, this translates into strong demand, attractive returns, and sustained interest in property on the island.

At the same time, the market is entering a new phase in which regulation, professional property management, and careful location selection will play an increasingly important role.