How Much Does Rental Accommodation Cost in Cyprus in Summer 2026 and What Is Changing for Investors?
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The short-term rental market in Cyprus continues to demonstrate steady growth. Peak demand is expected in July and August, with prices rising significantly during this period, according to Ekathimerini. The island's rental market remains highly seasonal. At the same time, year-on-year demand declined in June and showed little change during the other summer months.
Rental Prices in Cyprus: Trends and Rates
Average rental prices in Cyprus increase by 31.8% during the summer season. This places the country eighth in Europe in terms of seasonal price growth. Between June and August, the average nightly rate reaches €135.11, compared to €93.95 during the rest of the year.
The average daily rate since May 2025 stands at €113.80. This figure is below the European average of €131.59 but slightly above the regional median of €112.16.
According to the national short-term rental registry, bookings in Cyprus fell by 4.6% in June compared to the previous year. Demand is expected to increase by 4.1% in July and by 2.6% in August. Overall, summer demand is projected to rise by only 0.4% year-on-year.
Paphos remains the largest market by number of listings, with 4,231 properties. It is followed by Famagusta (1,791), Larnaca (1,407), Limassol (1,267), and Nicosia (457).
Airbnb data shows that Paphos recorded the highest average daily rate in Cyprus over the past 12 months at €263.81. Protaras ranks second with an average nightly rate of €238.26.
Short-Term Rentals in Larnaca
According to AirROI, Larnaca's Airbnb market remains a steadily growing segment of the local tourism real estate sector. The city currently has around 1,200 active short-term rental properties, representing a 36.5% increase compared to 2025. Average annual revenue is approximately $11,890.
The average nightly rate stands at $106. Premium properties achieve rates of $162 or more per night, while lower-tier listings average around $72.
Average occupancy is 41.7%. Top-performing properties exceed 81% occupancy, while the lowest-performing segment falls to 23%. RevPAR (revenue per available room) averages $45. The top 10% of listings generate around $77, while the lower segment achieves approximately $24.
Seasonality remains a key factor affecting profitability. August is the strongest month, while January is the weakest. The best-performing properties earn more than $2,800 per month, strong performers generate over $2,000, the median level is around $1,247, and the lower segment averages approximately $646.
The European Short-Term Rental Market
Cyprus experiences more moderate seasonal price fluctuations than several other popular tourist destinations. For comparison, seasonal rental growth reaches 54.9% in Greece and 37.6% in Croatia. Summer rental rates increase by 29.8% in Spain and 18% in Italy.
Demand trends are similar across major European markets, including France, Greece, Portugal, and Spain, where June also showed weaker interest in short-term rentals.
The highest average nightly rates in Europe are recorded in Monaco at €417. It is followed by Iceland (€213), Andorra (€189), Switzerland (€184), and the United Kingdom (€141).
Among the more affordable markets are Serbia (€51.17), Moldova (€45.50), and Kosovo (€41.60). North Macedonia remains the least expensive market, with an average nightly rate of €39.80.
Fighting Illegal Rentals in Cyprus: What Investors Should Know
Illegal short-term rentals remain a challenge in Cyprus. While 9,153 short-term rental properties and 39,218 bed spaces are officially registered, the Ministry of Tourism estimates that the actual market includes around 12,000 properties.
New regulations concerning property registration came into force on May 20, 2026. Reporting requirements and enforcement procedures have been strengthened, allowing violations to be processed faster and through a clearer legal framework. Platforms such as Airbnb and Booking are now required to share data with regulators.
Analysts at International Investment advise buyers planning to operate short-term rentals in Cyprus to verify the property's registration number, review its tax history, and include contractual guarantees confirming the legality of the rental business.
Investors should also take into account that tighter regulation will inevitably increase compliance costs. An alternative strategy may be to convert properties into long-term rentals, reducing regulatory risks and administrative burdens. However, this typically comes with lower potential returns.
Experts note that government oversight continues to intensify, while new European regulations will make it easier to identify illegal listings. Further restrictions are also possible in popular tourist areas where a high concentration of short-term rentals is affecting local housing markets.