As per Yiannis Kotzias, general manager of operations at Phaedrus Living, a prop-tech residential rental platform, short-term rental properties are rapidly becoming a mainstay in the accommodation choices of both travelers and locals in Cyprus.
In an analysis published this week, Kotzias stated, "This is a natural progression considering the global momentum short-term rentals have gained, and Cyprus, being a tourist destination, is no exception."
Furthermore, he clarified that the real estate industry has been driving the expansion of the short-term rental property market, as an increasing number of investors are building or purchasing homes and apartments to profit from this use of real estate.
"AirDNA platform statistics reflect the dynamic nature of the market," he stated, pointing out that by late January 2024, there were over 15,400 active short-term rental properties in Cyprus.
He continued, "The number of available properties for short-term rental increased annually in major cities of free Cyprus,” citing a 25% increase in Nicosia, a 17% increase in Limassol, a 9% increase in Larnaca, and a 3% increase in Paphos.
Kotzias claims that the company's list of factors explains why short-term rentals appeal to investors and property owners, including the fact that the financial gain from short-term rentals is typically greater than that of long-term rentals.
"This approach has many benefits, one of which is flexibility—you can raise daily rental rates during times of high demand, for instance," he said.
Furthermore, he mentioned that AirDNA estimates the average annual income for lodging in Nicosia to be €13,500, in Limassol to be €26,200, in Larnaca to be €18,300, and in Paphos to be €24,800.
In addition, he stated that "returns significantly increase in properties located in popular summer destinations in the country, such as Protaras and Ayia Napa, where the average annual income is €46,200 and €61,300, respectively."
"On the other side of Cyprus, owners of short-term rental properties can earn an average of €55,800 a year from the sunset view of Peyia," he continued.
He went on, "The flexibility for investors to use their property whenever they want" is another benefit of short-term rentals.
"An investor, for example, can schedule their vacations by just blocking the dates they want to use,” the speaker stated.
He also mentioned that many investors choose to maintain properties in different locations to better manage the issue of seasonality in the tourism sector, which affects properties in tourist hotspots, and to reduce the risk associated with investing in short-term rentals.
According to Kotzias, effective marketing can boost investor returns, and positive guest reviews are a surefire way to do just that.
Furthermore, the speaker noted that it makes sense for investors to entrust specialized management companies with tasks like maintenance, gardening, and cleaning coordination, as well as other potential needs like repairs and upkeep.
According to him, "These companies essentially relieve investors and property owners of the headache of managing short-term rental operations, and their knowledge helps to increase returns on their properties."
"It is clear that the rising 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 continued. "With tourism expected to further develop globally."
He said, "In such an environment, property owners and investors must stay up to date with the evolution, maintain their properties' high search engine rankings, and grow their revenue."