Short-term rental properties becoming more popular in Cyprus
Short-term rental properties are increasing in popularity in Cyprus, quickly becoming a mainstay in the accommodation choices of both travelers and locals, according to Yiannis Kotzias, general manager of operations at Phaedrus Living, a proptech residential rental platform.
“This is a natural progression considering the global momentum short-term rentals have gained, and Cyprus, being a tourist destination, is no exception,” Kotzias said in an analysis piece released this week.
Moreover, he explained that the growth of the short-term rental property market has been fueled by the investment community, with a growing number of investors acquiring or even constructing houses and apartments to generate returns through this utilisation of real estate.
“The dynamic nature of the market is reflected in statistics provided by the AirDNA platform,” he said, noting that by late January 2024, active short-term rental properties in Cyprus exceeded 15,400.
“The number of available properties for short-term rental increased annually in major cities of free Cyprus,” he added, noting that Nicosia saw a 25 per cent rise, followed by Limassol with 17 per cent, Larnaca with 9 per cent, and Paphos with 3 per cent.
According to Kotzias, based on the reasons identified by the company itself, property owners and investors are attracted to short-term rentals for a number of reasons, one of them being the increased financial benefit, which is generally higher than that of long-term rentals.
“The flexibility, such as the ability to increase daily rental prices during peak demand periods, is just one example of the advantages this method offers,” he stated.
In addition, he said that the average annual income for accommodation in Nicosia is estimated at €13,500, in Limassol at €26,200, in Larnaca at €18,300, and in Paphos at €24,800, according to AirDNA.
Furthermore, he said that “returns significantly increase in properties located in popular summer destinations of the country, such as Protaras and Ayia Napa, where the average annual income is €61,300 and €46,200, respectively”.
“On the other side of Cyprus, the sunset view of Peyia yields an average annual income of €55,800 for short-term rental property owners,” he added.
Another advantage of short-term rentals, he continued, is the flexibility for investors to use their property whenever they want.
“For instance, an investor can plan their own vacations by simply blocking the dates they wish to use,” he said.
He also mentioned that in order to mitigate the risk of investing in short-term rentals, many investors choose to keep properties in different locations in order to better manage the issue of seasonality in the tourist sector, which affects properties in tourist hotspots.
Kotzias explained that investor returns can be increased with strategic marketing, providing a boost, and certainly through positive guest reviews.
In addition, he said that when taking into account services like cleaning coordination and addressing other needs that may arise, such as repairs, maintenance, and gardening, it’s understandable why investors are turning to specialised management companies to handle these for them.
“These companies essentially free property owners and investors from the hassle of operational processes related to short-term rentals, while their expertise contributes to increasing returns on their properties,” he said.
“With tourism expected to further develop globally, it is evident that the increased demand for short-term rentals by tourists and the growing investment activity both strengthen and change this new industry, creating conditions for intense competition,” Kotzias added.
“In such an environment, it is crucial for property owners and investors to keep up with the evolution, continue to position their properties high in the choices of vacationers, and increase their income,” he concluded.
Read more at: https://cyprus-mail.com/2024/02/06/short-term-rental-properties-becoming-more-popular-in-cyprus/
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