Cyprus landlords weigh holiday lets against long-term rentals as rents rise

Nicosia, Cyprus. Property owners across Cyprus are reassessing whether short-term holiday letting still pays off. Higher rents for ordinary tenancies, changes to property taxation and closer oversight of Airbnb-style lets are shifting the financial balance.

Why holiday lets are losing some appeal

Short-term rentals have long been associated with stronger returns, especially in tourist areas such as Paphos, Protaras and Limassol. However, a high nightly rate does not show what an owner actually keeps. Cleaning, platform commissions, electricity bills, maintenance and stretches without guests all reduce the final income.

Meanwhile, rents for conventional lets keep climbing. A dependable tenant on a 12-month agreement is therefore becoming a more appealing option.

Rental growth figures

The latest RICS Cyprus Property Price Index, compiled with KPMG, shows apartment rental values up 7.36 per cent year on year in the second quarter of 2026. Holiday apartments recorded growth of 6.43 per cent over the same period.

The gap is modest, but it favours residential property. Landlords therefore have a further reason to question the additional effort that running holiday accommodation involves.

Asking rents by city

Bazaraki’s latest figures, covering January to August 2026, show differences in average monthly apartment rents between cities. Limassol stood at €1,716, Paphos at €1,131, Larnaca at €905 and Nicosia at €734.

On that basis, a Limassol landlord would collect more than €20,500 a year, assuming full occupancy and no missed payments. The equivalent figure for Paphos apartments is about €13,600, and for Larnaca properties roughly €10,900.

These numbers are averages of advertised rents, not guaranteed income. Even so, they show why the difference between holiday letting and standard tenancies merits closer attention.