In big cities, all over the world, the same is true: control of housing by de facto cartel oligopolies and the price of rents is constantly rising. In 2017 alone, prices jumped 20.5% in Berlin, 16% in Vancouver and 14.8% in Hong Kong.

Finding sustainable and decent housing, especially for young families, is a growing problem that we face here in Cyprus and especially in Limassol, due to the great influence on the city's economy by many wealthy Russians, mainly, but also due to the expansion of airbnb in a predominantly tourist city, in a way that offers much greater economic benefits to property owners. As a result, rents have skyrocketed.

The added value created by the buildings erected under the Cyprus Investment Programme contributed to this, as acknowledged by the updated (September 2020) study of the Ministry of Finance.

According to a survey conducted by Eurostat, published on 12/8/2020, for 2019 a very large and alarming percentage of young people aged 25 to 34 in Cyprus, reaching 38%, lived with their parents, because they could not afford the ever-increasing cost of housing, especially in areas such as Limassol. as mentioned above

The Barcelona decision

In an effort to address the lack of affordable housing, Barcelona will ban short-term rentals (airbnb, etc.) for tourists by the end of 2028.

The decision, announced earlier this month by Mayor Jaume Collboni, affects about 10,000 apartments rented through platforms such as Airbnb.

The ban aims to "rebalance the housing market" and protect "residents' rights in the city."

Mayor Jaume Collboni, at a press conference, argued that the price of rent in the city has increased by almost 70% in the last ten years and that of purchases by about 40%, which forces the City Council to take drastic measures to guarantee access to purchase or rent housing.

"We cannot allow the majority of young people who want to leave their home to be forced to leave Barcelona," the mayor said. "This measure will not change the situation overnight. These problems take time. But with this measure we mark a turning point."

According to a detailed Euronews article, what the city of Barcelona is doing is nothing new but is the latest in a series of decisions in cities in European countries and the US to address the growing problem of housing, which arises mainly from short-term rentals.

Alarm everywhere in the EU

Vienna, Austria has already tightened restrictions on hosts. Florence, Italy announced in mid-2023 a ban on new Airbnb listings and other short-term vacation rentals in its historic city center. Italy is now considering stricter rules at national level.

Austria's capital has announced that, from July 2024, homeowners will be limited to renting individual units to tourists for a maximum of 90 days per year.

Parts of Vienna have already imposed these restrictions since 2018, but they will soon be implemented across the city. The move aims to ensure that properties are not used exclusively for short-term rentals.

Parisians who wish to rent their primary residence on a platform like Airbnb must register with their local town hall. They are limited to renting their main residence for a maximum of 120 days a year.

For a second home or for renting a property for more than 120 days, they must officially convert it into a furnished tourist accommodation. The city even has a special unit to pursue illegal rentals and fines offenders.

In the past, Berlin introduced an Airbnb ban. This has now been lifted, but the strict rules – imposed with hefty fines – remain.

Airbnb hosts in the city must have a permit to rent an entire property on a short-term basis. Second homes can be rented for a maximum of 90 days a year.

In Munich, short-term rentals of entire houses are limited to eight weeks per year, after which a permit must be obtained.

In Stuttgart, hosts who rent more than half of their property on a short-term basis are limited to 10 weeks per year without permission.

Florence, Italy, has already imposed restrictions on Airbnb-style rentals. The city is set to limit new tourist accommodation in its historic centre. Venice and Milan are also discussing introducing restrictions.

The law, which targets rentals of less than 30 days, has yet to be finalized. It will impose a minimum stay of two days in cities and tourist spots.

In Amsterdam, Netherlands, hosts can rent their properties for a maximum of 30 nights per year. Anything above requires a permit for short-term residence.

To combat rising rental prices, Portugal has stopped issuing new permits for Airbnbs and other similar holiday permits – except in rural areas.

All holiday rental permits will now be reviewed every five years. A new system for controlling rental prices is also introduced. Airbnb owners are also offered tax relief if they convert their properties into ordinary homes.

In London, Airbnb hosts are only allowed to rent their property for 90 nights or less per year without applying for a change of use. The limits were imposed to ensure short-term rentals are viable and minimally intrusive in the city.

Hosts with new listings in Scotland must now obtain permission to use a property for short-term rental before accepting any reservations.

Getting the messages

It is obvious that the only way to combat the housing crisis, especially for young people, is the immediate intervention of the state, by finding policies that alleviate this huge problem and it is important here in Cyprus that we receive the messages and lessons from serious countries around the world.

* Advocates-Legal Consultants