Short-term rentals in Cyprus are showing strong momentum, with the country ranking second in the European Union for booking growth, just behind Malta. The data reflect a steady shift in demand toward major digital platforms—Airbnb, Booking, and Expedia—which now compete directly with hotels during every tourist season.
This trend is closely linked to Cyprus’ strong tourism performance and the expanding supply of short-term rental properties, particularly in coastal and high-demand urban areas.
Cyprus leading European growth
According to available data, while the EU overall recorded an average annual increase of 8.7% in visitor overnight stays in short-term rentals in Q3 2025, performance varied significantly across member states.
Malta recorded the highest increase (+24.0%), followed by Cyprus with +19.4%, confirming the market’s momentum. Sweden (+13.1%) and Greece (+12.3%) followed, while double-digit growth was also seen in Latvia, Germany, Denmark, Slovenia, Ireland, Finland, and the Czech Republic.
Explosive booking growth in 2025
Booking trends in Cyprus throughout 2025 illustrate this dynamic. The first quarter saw 824,501 bookings, rising to 1,962,423 in the second quarter, a period outside the peak summer season.
The picture changed dramatically in Q4 2025, when bookings reached 3,015,632, reflecting both the extended tourist season and travelers’ consistent preference for Airbnb-type accommodations.
How major European markets fared
In absolute terms, Europe’s largest tourist markets continue to account for the bulk of short-term rental bookings. In Q3 2025, bookings were as follows:
France: 88.9 million
Spain: 73.0 million
Italy: 58.8 million
Portugal: 20.7 million
Germany: 24.3 million
Across the EU, Q3 2025 saw 398.1 million visitor overnight stays via the three major platforms—a rise of 8.7% compared to the same quarter in 2024.
Summer 2025: New record levels
The summer season of 2025 recorded the highest levels of overnight stays in recent years. July reached 148.5 million (+10%), August 164.3 million (+8%), and September maintained the upward trend with 85.3 million (+8%).
Overall, the figures confirm sustained demand for short-term rentals across the EU, with platforms cementing their position as a key accommodation channel.
Pressure on long-term housing
Despite their positive contribution to tourism, the expansion of short-term rentals raises concerns. Converting apartments into tourist accommodations limits availability for long-term rental, particularly in high-demand areas, putting upward pressure on rents and creating housing shortages for permanent residents.
This issue has become a focal point of public debate in many European countries, and Cyprus is no exception.
Regulatory and european framework
At a legislative level, the Cyprus Parliament unanimously amended the law regulating the establishment and operation of hotels and tourist accommodations. The goal is alignment with EU provisions for collecting and sharing data on short-term rental services.
During the debate, it was emphasized that a unified and reliable framework will now ensure better market oversight at the EU level. The new regime will come into effect on May 20, 2026, marking a new phase of regulation for the sector.
A market in maturity
The data indicate that short-term rentals in Cyprus are transitioning from a rapid-growth phase to one of maturity and institutional organization. Strong demand remains, but it is now accompanied by increased oversight, policy interventions, and discussions on balancing tourism and housing needs.
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