The short-term rental of real estate is a trend, which is gaining more and more support over time both in Cyprus and abroad.
The number of houses and apartments that are part of short-term rental platforms is growing rapidly and Economy Today attempts to outline the data of a relatively new market that is attracting the interest of both local and foreign vacationers in our country.
But apart from tourists, short-term rentals are now an option for owners of villas, houses and apartments. As the data we collected from the Airdna platform show, thousands of accommodations operate in this way in our country. At the same time, real estate management companies are also active, to which many owners rush on the one hand to ensure performance and on the other hand to get rid of procedural issues. They commonly entrust the management of their property to a company for peace of mind.
Cypriot interests Phaedrus Living does this work in four countries Cyprus, Greece, Italy and Britain and as its General Manager, Yiannis Kotzias, states to Economy Today, short-term property leases are a product in great demand, both by visitors/tourists as well as by property owners as it is an alternative way of securing income. But he emphasizes that "it is very important that the companies that manage the properties are legal, that they fulfill their tax obligations and that the accommodations they manage are registered in the register of self-catering accommodations of the Deputy Ministry of Tourism of the Republic."
Great momentum in Paphos and free Famagusta
Just as it happens in the hotel industry with the beds, so in the short-term rental most accommodations are located in the provinces of Paphos and Famagusta.
The district of Paphos has developed great momentum in short-term rental, according to the analysis of Airdna's data on a specific date. In particular, it has the most properties on the online short-term rental platforms Airbnb and Vrbo as their number exceeds 3300. 1/3 of these properties are located in the city of Paphos, where the average booking price is €78 per day, occupancy at 81% and the average monthly income per accommodation is estimated at €1181.
There are almost 3200 self-catering accommodations in the free province of Famagusta, with the vast majority of them located in Protaras and Ayia Napa. The average prices in these two areas have a large deviation and their occupancies are at the same levels (75% – 74%).
The General Manager of Phaedrus Living, explains that in recent years the number of those who invest in properties for touristic development and then give their management to companies is increasing. “This is a change of attitude in investment behaviour, which is of particular interest in itself as there are many who have stopped moving within the traditional logic of buy the property and rent it out to generate income. Now they come to us, ask to know the returns we offer to manage their property and then proceed to the market", says Yiannis Kotzias.
Next are Limassol and Larnaca
In the city and the province of Limassol there are almost 1000 properties, which operate under the short-term lease regime with high occupancy rates and average booking prices of over €92 per day. In the city of Limassol, where occupancy is around 84%, the average monthly income for an accommodation is estimated at €1315. Even lower is the price of accommodation in Larnaca, the core of the province's short-term rentals.
Source: Economytoday