Cyprus could soon have firmer legal backing to change its short-let rules to restrict Airbnb-style rentals in areas facing proven housing pressure. But any action would depend on the island showing where that pressure exists and whether short lets are adding to it.
The European Commission is preparing an Affordable Housing Act for later this year. It has not proposed an EU-wide cap, licensing quota or ban on short-term rentals. Instead, it wants public data to identify local “areas of housing stress”.
National and local authorities could then introduce proportionate measures to protect affordability. Any limits on short lets would need to sit alongside plans to build more homes, return empty properties to use, expand social housing and speed up planning.
Cyprus short-let rules could alleviate housing pressure
The issue is pressing in Cyprus, where platform-based stays are growing fast. Eurostat recorded 7.64 million guest nights booked through Airbnb, Booking and Expedia in 2025. That was 24.7% higher than in 2024.
Growth continued in early 2026. Cyprus recorded just over one million platform guest nights from January to March, up 22.3% year on year. This was the fourth-fastest growth rate in the EU.
These figures show demand, not the number of homes used as holiday lets. A family of four staying for three nights creates 12 guest nights. The data therefore cannot show how many properties have left the long-term rental market.
Audit report exposes gaps in Cyprus holiday-rental register
The strongest official measure of supply is a July Audit Office report. It found 8,464 licensed self-service units registered on 6 May. That equals about 1.7% of Cyprus’ 492,931 homes in the 2021 census, although the comparison is only a guide.
The Audit Office also found gaps in the register. Of 20 online listings reviewed, only six had a valid matching licence. Ten had no registration number, while four used an invalid number or one linked to another property.
A separate review in Famagusta found 23 Airbnb and Booking listings missing from both tourism registers. The samples are too limited to calculate an illegal-market rate. Still, they point to weak identification, data sharing and enforcement.
Effective since 20 May, EU regulation 2024/1028 has given states a common system for collecting platform data. Platforms may have to display registration numbers, make random checks and share monthly data on stays, nights and units. Authorities can also seek the removal of non-compliant listings.
Better local data is key to affordable housing action
The rules do not create rental limits. They give governments evidence for deciding if further action is justified.
That is important because Cyprus has rising house prices but no official finding that short lets are the main cause. Residential prices rose 7.5% in the first quarter of 2026, led by a 10.8% rise in apartment prices. The Central Bank pointed mainly to foreign demand, domestic demand and building costs.
The likely test is local and evidence-led. Cyprus will need neighbourhood data on listings, professional hosts, rents, prices and housing supply before it can make a strong case for targeted Cyprus short-let rules.
