Short-term flat rentals reduce supply, raising flat rents, hampering student accommodation, expert says

Flats provided for short-term rent on platforms such as Airbnb, reduce the supply of apartments and this is the main reason behind the spike in flat rents, hampering the search for accommodation for students, Marinos Kineyirou, President of the Council for Registration of Real Estate Agents Cyprus suggests.

The state should consider curtailing or even terminating this practice in a bid to tackle the problem, he said, speaking to CNA.

In view of the start of the new academic year CNA spoke with Kineyirou over the issue of housing for students given the limited supply of student halls in Cyprus, which prompts students to look for flat rentals, which are very high.

“The limited supply of flats is the reason for the spike in rents,” Kineyirou said.

To a large extent this rise, he added, is due to the daily provision of short-term flat rentals, which has absorbed part of the flat supply.

According to data provided by Kineyirou the coastal town of Limassol presents the highest prices both in terms of single-room and double-room flat rents. Housing in Limassol is also affected, not only by tourists but also because of the inflow of foreign workers due to the influx of ICT firms.

Rents for single room flats in Limassol range from €1,000 to €1,100, much higher than the capital Nicosia, which ranks second in terms of flat rentals with €600 to €700 per month. In the coastal cities of Larnaca and Paphos single-bedroom flat rents range from €500 to €600, Kineyirou added.

Limassol also tops the list in terms of double-room flat monthly rents which range from €1,400 to €1,500, followed by Nicosia with rents ranging from €800 to €900. Rents in Laranca and Pafos range from €700 to €800 per month.

Kyneyirou pointed out that “the state should seriously consider the possibility of terminating or limiting short-term or daily rentals, to avert the supply shortage both for those seeking flats for long-term rentals and for the organised tourist complexes as well.”

“Unfortunately, today essentially anyone could convert his flat as a tourist accommodation and we wonder who controls the town planning zones and licensing,” he concluded.

(Source: CNA)