The trend for property owners to use short-term AirBnB leasing platforms seems to have come to an end in Cyprus, according to insiders who described it as “outdated”.
However, Chairman of the Cyprus Real Estate Agents Association Marinos Kineyirou told Phileleftheros that AirBnB regulations still need to be defined by law so to put an end to a prevailing “anarchy”.
Kineyirou did admit that the problem of over-priced property for rent in Cyprus was there.
“At least up until the summer, many people couldn’t find apartments to let either because of the limited number on the market or because they were confronted with outrageously high prices. In fact, Limassol is the city where the situation is worse, people are searching through binoculars to find an apartment,” he said.
“But the real estate market’s state of play today is much smoother. Rents remain more or less at the same level. But the rise in prices is not expected to peak, so there is stabilisation,” he added.
It seems that it is this stabilisation that makes property owners opting for long-term rentals. “In the summer, many home-owners did not have the expected (short-term) full occupancy, so they decided to return to annual rentals. Basically, by weighing the pros and cons as well as tourist arrival numbers, they decided to turn back to year-long rentals.”
On the steady rise in rental prices, he said that increased demand and low supply had led to higher rental prices. “Now, the supply of real estate has grown a bit. Many people have invested in real estate and put it up for rent, so the problem with limited real estate on the market is somewhat reduced. This category of investors was non-existent last year,” he also said.
Therefore, higher real estate supply has led to price stability, he added.
“We also observe that at peak times, for example in September when students are looking for a roof, prices are on a slight increase. But, all in all, there are no big fluctuations,” he added.