EU proposal could give Cyprus stronger basis to curb short-term rentals

Nicosia, Cyprus. Cyprus could gain firmer legal grounds to restrict Airbnb-style rentals in areas where housing pressure can be demonstrated under a European Commission proposal due later this year. Authorities would first need to establish where housing stress exists and how much short-term lets contribute to it.

Proposed EU framework

The Affordable Housing Act is still being prepared, and no EU-wide rental cap, licensing quota or ban has been agreed.

The Commission has said publicly available data should be used to identify “areas of housing stress”, where national, regional or local authorities could introduce proportionate measures to protect housing affordability, including measures affecting short-term rentals.

The proposal does not amount to a blanket EU crackdown. The Commission has also said restrictions must be accompanied by policies to increase supply, including new construction, the return of vacant properties to use, additional social housing and simpler planning and permitting.

Platform accommodation growth

The proposal comes as platform-based accommodation continues to expand in Cyprus, while authorities are still seeking to establish how much of the market operates legally.

Eurostat recorded 7.64 million guest nights in Cyprus accommodation booked through Airbnb, Booking and Expedia in 2025, up 24.7 per cent from 6.12 million in 2024.

Growth continued into 2026, with Cyprus recording just over one million platform guest nights between January and March, a 22.3 per cent increase from the first quarter of 2025. This was the fourth-highest growth rate in the EU, behind Malta, Slovenia and Slovakia, according to the latest quarterly figures.

Limits of available data

The figures measure guest nights rather than properties or bookings. A family of four staying three nights in an apartment, for example, produces 12 guest nights.

They therefore indicate demand for short-term accommodation, but do not show how many homes have been removed from the residential market.

The clearest official supply count is contained in a July Audit Office report, which said 8,464 licensed self-service accommodation units were registered with the Deputy Ministry of Tourism on May 6.

For comparison, that number equals about 1.7 per cent of the 492,931 housing units counted in Cyprus’ 2021 census. However, the comparison is only indicative, as the housing-stock figure is five years old and registered accommodation may include second homes and properties built specifically for tourism rather than homes previously available to permanent residents.

The Audit Office also found that the official register may not capture the full market.