Short-term rentals on platforms such as Airbnb and Booking.com are expanding rapidly across Cyprus, especially in Limassol, Larnaca and Paphos, and local authorities are struggling to keep up with regulation and enforcement.
According to platform analytics cited by property analysts using AirDNA data, Cyprus had around 15,400 active short-term rental listings at the start of 2024, up sharply on 2022. Limassol and Nicosia recorded the fastest growth in active units, while Larnaca and Paphos continue to have the highest concentration of holiday-oriented listings.
At the same time, rents continue to rise. The Central Bank’s residential property index shows apartment rents in Cyprus increasing by about 5% year on year in the third quarter of 2025, with stronger pressure in Limassol and coastal areas where demand from foreign buyers and digital nomads is highest. Local estate agents tell a similar story, reporting that landlords in central Limassol and parts of Larnaca and Paphos have shifted apartments from long-term leases to short-term platforms to maximise income, shrinking the stock of affordable housing for residents and students.
Cyprus has already introduced a national register for self-catering tourist accommodation, including short-term rentals. Properties listed on platforms are supposed to obtain a registration number from the Deputy Ministry of Tourism and display it on every online listing, with fines for non-compliance. In practice, municipal officials admit that inspections are limited. Many listings still appear without a visible registration number, and small communities lack staff to carry out systematic checks or to cross-reference online platforms with the national register.
The pressure is not only local. Across the European Union, short-term and holiday rentals grew by almost 93% between 2018 and 2024 and now account for up to 20% of the housing stock in some popular destinations, according to the European Commission. A new EU regulation on data collection and sharing for short-term accommodation services will apply from May 2026 and is meant to force platforms to share detailed data with national authorities and help cities enforce local caps and zoning rules.
Cypriot municipalities say they want those tools but note that effective enforcement will depend on political backing and resources. Housing advocates argue that short-term rentals are only one part of a broader housing crisis that includes stagnant wages, limited social housing and high construction costs. Yet they also point out that without tighter, coordinated enforcement, the shift from long-term to short-term leases in already stressed districts risks making urban life unaffordable for more residents, even as tourism numbers reach new records.