KNews 20 January 2026 - by Dorita Yiannakou
9,153 registered properties now offer 39,218 beds, but illegal listings keep the market in turmoil
Chaos seems to be brewing in Cyprus’ short-term rental market. New figures from the Deputy Ministry of Tourism show a rapidly expanding sector where legal activity is growing, but illegal operations remain a stubborn thorn in the side of regulators.
According to preliminary data collected by a private research firm for the Ministry, Cyprus now hosts roughly 12,000 registered short-term rental properties, not even counting accommodations in rural or agro-tourism areas. This suggests the true size of the market is even larger.
Surge in Registrations
The official Register of Self-Catering Accommodation tells a striking story. In April 2023, there were 4,765 registered properties, offering 21,636 beds. Today, that number has jumped to 9,153 properties and 39,218 beds, a 92% increase in just two years.
The distribution across the island shows Paphos leading the way with 4,231 registrations, followed by Famagusta (1,791), Larnaca (1,407), Limassol (1,267), and Nicosia (457). Analysts say this growth reflects both increasing demand and owners’ efforts to comply with stricter controls.
Crackdown on Illegal Rentals
Despite the growth in legal listings, illegal short-term rentals continue to be a serious problem. So far in 2025, authorities have received 81 complaints across all districts about unregistered properties.
The Deputy Ministry of Tourism is actively pursuing enforcement. Its campaigns combine on-site inspections and digital monitoring, aimed at identifying properties operating without proper registration. Violations are referred to the Legal Service, and when there is sufficient evidence, prosecutions follow. Officials say these early legal actions signal a new, stricter approach to enforcement, designed to restore transparency and protect public revenue.
“The rapid rise in illegal rentals isn’t just a revenue issue for the state,” tourism officials note. “It also worsens housing shortages and increases pressure on an already stressed property market.”
A New Era of Regulation
In a recent move, Cyprus’ Parliament approved the 2025 Amendment Law, aligning local rules with the EU Regulation 2024/1028, which seeks to bring transparency and order to short-term rentals across Europe. The regulation comes into effect on May 20, 2026, and is expected to create a healthier, more transparent market.
Key measures include:
- Harmonizing registration requirements for hosts and properties
- Clarifying rules for public reporting and enforcement
- Standardizing data sharing between online platforms (like Airbnb and Booking) and public authorities
- Introducing a unified system to prevent illegal listings
- Setting consistent penalties for non-compliance
The new EU framework will provide reliable, centralized data on short-term rentals, helping Cyprus and other member states more effectively monitor and tackle illegal activity, while also ensuring legal operators can compete fairly.
As Cyprus’ short-term rental market continues to grow, authorities hope the combination of stricter enforcement and EU-wide regulations will finally bring order to a sector that has long been booming and sometimes running wild.
