Cyprus rents soar up to 20 pct as Airbnb sucks up supply

Cyprus rents soar up to 20 pct as Airbnb sucks up supply

The price of renting in Cyprus shot up by as much as 20 percent last year due to a low supply of homes, but this upward trend is seen as stabilising in 2019, says Panos Danos, chief executive of Danos/BNPRE group.

In an article published in Financial Mirror, Danos says that data collected by DANOS/BNPRE shows that rent prices in 2018 rose by an annual pace of 15 percent.

"The main reason for this rise is the wide-spread use of Airbnb-like platforms that create a distortion in the Cypriot housing market, the increasing number of foreign students and the trend of Cypriots to rent rather than to buy (also due to difficult bank financing)," he says.

"The demand for flats and houses is constantly on the rise while the available flats are becoming hard to find over time, as their owners prefer the short-term rental options that these Airbnb applications offer," he adds.

The rise in rents in Cyprus prompted lawmakers last year to set up a committee tasked with investigating the price hikes. Concerns are rising that higher accommodation costs are forcing students to leave the island at a time the country is trying to position itself as a key destination for university studies.

The biggest rise was in the beachside area of Limassol and was followed by Ayios Athanassios, which saw an increase of 15 percent on the year.

In Nicosia, the cost of renting in areas such as Engomi and Aglandjia, also advanced 15 percent. Over in Larnaca and Paphos, rents rose by 10 percent with the highest increases spotted in the city centre and coastal areas.

"In 2019, residential rents are expected to stay stable as new developments are coming on the market and

the banks plan to increase their residential sales of repossessed homes through auctions," adds Danos.

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