Friday, August 30, 2024 Recent developments in Cyprus have sparked debates and discussions surrounding the impact of short-term rentals on the local economy, particularly in tourism-dependent areas. Michalis Loizou, director of Delfi Partners, recently addressed concerns regarding the role of short-term rental properties in driving up rental costs in Cyprus. He argued against the notion that these rentals are the primary cause of rising rents, suggesting instead that other factors play a more significant role in this phenomenon.
Loizou further warned that imposing strict regulations on short-term rentals could have adverse economic consequences, particularly in regions heavily reliant on tourism. Loizou emphasized that reducing property values and increasing non-performing loans could result from stringent regulations, potentially making tourist destinations in Cyprus less competitive on the global stage. This concern is crucial as it could lead to a decrease in tourism revenue, affecting not just the local economy but also the overall appeal of Cyprus as a tourist destination.
The Broader Debate on Short-Term Rentals The debate surrounding short-term rentals extends beyond Cyprus, resonating with similar discussions in other countries like Greece. As the popularity of renting residential properties on a short-term basis continues to grow in both Cyprus and Greece, the conversation about its impact on the residential property market intensifies. While some stakeholders advoca.