Insider Business Uncertainty over short-term property lease agreements

Uncertainty over short-term property lease agreements

With summer just around the corner great uncertainty prevails over the Mediterranean island’s real estate market and tourism sector because of the coronavirus, Phileleftheros reports.

Under normal conditions everyone should be thinking about their holidays since many Cypriots were renting out apartments for the summer season. And a number of companies used to undertake the management of these short-term leases.

However, with the state of play being so different these days landlords are warned that contracts need to be renegotiated.  The forecast, afterall, is that it will be very difficult to rent out all available properties this summer.

Companies managing short-term leases are expected to make their moves after April when the level of uncertainty  is lower. Undoubtedly, tourist areas will be hit the worst since short-term apartments for lease are in plethora there. And if no tourists come to Cyprus, then the number of vacant apartments this summer will be way too high.

Head of the Cyprus Real Estate Valuers Association Kyriacos Talatinis told Phileleftheros that demand for short-term leases is expected to drop.

“It is only natural that this type of leases will suffer a big blow. The number of unoccupied apartments, especially in tourist areas, will be high. Owners, so far, have relied on both local and overseas demand and I believe that, with so much uncertainty, locals will be the ones mainly interested in short-term leases. But then again, how many locals will go on vacation this year?,” he asked.

As for contracts, he said it all depends on whether there are provisions over the prevailing extreme situations and what the clause should be in the case a contract is unilaterally broken.

At the same time, as the coronavirus outbreak is spreading around the world, thousands of travelers either cancel or postpone their reservations. Tourism is struggling to keep up with the rapidly evolving coronavirus pandemic and to adapt to the new state of play with airlines also being on the verge of financial disaster.

As a matter of fact, the Airbnb electronic rental platform has already announced changes to its cancellation policy, loosening strict penalty provisions.

By Demetra Landou

Read more:

Coronavirus: Cyprus real estate sector already hit

Top Stories

France recalls ambassador to Ankara over Erdogan comments

  France condemned Turkish President Recep Tayyip Erdoğan’s remarks questioning the mental health of President Macron and recalled its ambassador to Ankara for consultations. The French...

130 cases today, most from private initiative-28 patients in hospital

  One hundred and thirty new Covid-19 cases were announced today, out of 4 thousand 285 tests, taking the total number of confirmed patients to...

Greece approaches four-digit covid cases, 935 today

  The second coronavirus wave is climaxing in Greece as it recorded 935 cases today, the highest number since the second wave begun gathering pace...

Erdogan says Macron needs ‘mental treatment’ over attitude to Muslims

  Turkish President Tayyip Erdogan launched yet another scathing tirade of insults on his French counterpart Emmanuel Macron, saying he needed mental treatment over his...

We are independent, Michaelides tells AG over golden passports

  We are not under anyone's custodianship, the Auditor General Odysseas Michaelides told Attorney General Yiorgos Savvides, who earlier called on his office to stay...


Squash soup

Ingredients: 1 kg pumpkin, cut into small cubes, approximately 5 cups 2 medium (400g) sweet potatoes, cut into cubes, approximately 2 ½ cups 1 chopped leek, only...


No visit to Cyprus is complete without enjoying the traditional meal of many small dishes known as ‘meze’. This large feast, which has been a...

Prawns with fried cheese, barley shaped pasta

Put the barley shaped pasta into a small pan with salted water, bring to a boil and when tender, drain. Peal the prawns leaving...

Salmon and shrimp sheftalies

Mix all ingredients for tabbouli in a bowl and keep to one side so flavours can combine. Prepare the sheftalies: wash and soak the casing...