Holiday rental investment in Cyprus
Investing in the Cyprus real estate sector for the holiday rental business can be a lucrative opportunity due to the country's growing tourism industry and demand for vacation rentals. In this article, we will explore the reasons why Cyprus is a great destination for holiday rental investment and the key considerations for those looking to enter the market.
First, let's take a look at the state of the tourism industry in Cyprus. In recent years, the country has seen a significant increase in the number of tourists visiting, with over 4 million tourists arrived in 2019 with the COVID period dropping and restoring almost to 3.5 million in 2022. This trend is expected to continue, with the government actively promoting the country as a tourist destination.
One of the main drivers of this growth is the country's diverse range of attractions, including its beautiful beaches, rich history and culture, and wide range of outdoor activities. These factors make Cyprus a popular choice for holidaymakers looking for a mix of relaxation and adventure.
In addition to its appeal as a holiday destination, Cyprus has several other factors that make it an attractive location for holiday rental investment. These include a stable political and economic environment, a well-developed infrastructure, and a favourable tax regime for foreign investors.
Developing of remote work and unstable situations in Eastern Europe also affected Cyprus property market demand. With a limited offer, island property rental started growing in price. And in case an investor doesn’t want to deal with a holiday rental, he can always easily find long-term rental opportunities for his property.
Universal area in Paphos is considered the most popular Cyprus destination for Airbnb clients due to their statistics.
So, what should investors consider when looking to enter the holiday rental market in Cyprus? Here are a few key points to keep in mind:
- Location: Choosing the right location is crucial for success in the holiday rental market. Look for areas that are popular with tourists and have a good supply of rental properties. Coastal areas are typically in high demand, but there are also opportunities in cities and other areas with a strong tourist appeal.
- Property type: Consider the type of property that will best suit the needs of holidaymakers. For example, a beachfront apartment may be a good choice for those looking for a beach holiday, while a villa with a private pool may be more appealing for families.
- Legal and tax considerations: Make sure you understand the legal and tax implications of investing in the Cyprus real estate market. This includes obtaining any necessary permits and licenses, and understanding the tax treatment of rental income.
- Management: Think about how you will manage your holiday rental property. Will you handle the bookings and guest interactions yourself, or will you use a property management company?
- Marketing: Marketing your holiday rental effectively is key to attracting guests. Consider using online platforms such as Airbnb, Booking.com, and HomeAway to list your property and reach a wide audience. You should also consider traditional marketing methods such as print advertising and signage in the local area.
In conclusion, the Cyprus real estate sector offers a great opportunity for investment in the holiday rental market. With its growing tourism industry and favourable business environment, the country is an attractive destination for those looking to enter this market. By carefully considering factors such as location, property type, and management, investors can maximize their chances of success.
For small investments, Airbnb rental would be great, and for big business investors, FORLIFY can always find offers with local management with good ROI on the market.