The chairman of the real estate agents' association said on Thursday that urgent measures must be taken to curb the phenomenon of short-term tourist rentals by private individuals. The unregulated sector is significantly fuelling the housing shortage.

Legislation on the issue, introduced in 2020, was re-examined on Tuesday by Parliament's Energy, Trade, Industry and Tourism Committee.

This is not the first time that real estate agents have called for a ban on short-term rentals, which are mainly handled through online platforms such as Airbnb. The lack of clear regulation is depriving the market - and therefore Cypriot home seekers - of thousands of available housing options.

Increasing concerns and regulatory gaps
“Over the past two years, we have repeatedly raised our serious concerns about these impacts, but nothing has been done,” Marinos Kineyirou told CyBC.

Kineyirou listed the interrelated problems affecting both Cypriot residents and the real estate industry, including relaxed licensing criteria and the avoidance of tax payments to the state. Only a third of self-catering accommodation is properly registered with the Deputy Ministry of Tourism, while significant gaps in the regulatory framework remain.

Residential areas become tourism zones
“In addition, entire areas of the island are effectively being converted into tourism zones, even though they are actually intended as residential areas,” criticized Kineyirou.

He stressed that this was a glaring inconsistency, especially at a time when planning authorities are being criticized for failing to enforce zoning regulations. "Any person who owns properties in residential areas can convert them into vacation rentals."

Image of Cyprus as a tourist destination suffers
The rental of such unmonitored properties also damages Cyprus’ international reputation as a tourist destination.

Unlike hotels, which require numerous certifications, registering a residential building as short-term rental accommodation with the ministry is a simple process - without checking safety standards, quality or price appropriateness.

Demand for a ban and clear rules
For Kineyirou, the only solution is a complete ban on such rental practices and comprehensive regulation of the sector that ensures transparency and quality.

Organised holiday resorts are available in a wide range of prices and adequately cover the needs of tourists. In addition, long-term rentals have proven to be far more profitable for owners.

Urgent need for action for affordable housing
Above all, it is impossible to reduce rental prices for the local population as long as there is a shortage of available properties. "Cities in Greece, Barcelona, New York, London and other regions have already taken measures to solve these problems for their residents," noted Kineyirou.

He rejected accusations that real estate agents were only pursuing their own interests. Rather, it was important to ensure that the rules were applied equally to all operators of tourist facilities.

criticism of authorities
“Why do we have a deputy tourism ministry or a planning authority if they do not fulfill their duties in the case of thousands of illegal establishments?” Kineyirou concluded.











Source: CyprusMail.com

Author: Iole Damaskinos