Limassol Short-Term Rentals in 2025: Growth, Regulation & Investment Trends

Limassol Short-Term Rentals in 2025: Growth, Regulation & Investment Trends

Limassol Short-Term Rentals: The 2025 Outlook

The short-term rental market in Limassol is booming in 2025, driven by tourism recovery, digital nomads, and a vibrant urban lifestyle. With hundreds of new listings on Airbnb, Booking.com, and local platforms, the city is now one of Cyprus’s top destinations for holiday lets and flexible accommodation.

Market Growth & Key Trends

  • Over 2,200 active short-term rental properties in Limassol city and suburbs
  • Occupancy rates exceed 76% during high season (May–October)
  • Average nightly rate for a 2-bedroom apartment: €120–€190
  • Strong demand from EU tourists, business travelers, and remote workers

Owners report record-high yields, with some central properties earning up to €2,800/month during peak months.

Popular Locations for Short-Term Lets

  • Limassol Marina & Old Port: Luxury seafront apartments, nightlife access
  • City Center & Anexartisias Street: Boutique stays, walkable urban experience
  • Germasogeia & Tourist Area: Family-friendly holiday homes, beach access
  • Agios Tychonas & Pyrgos: Villas and premium holiday retreats

Properties close to the beach, restaurants, and city attractions consistently achieve the highest bookings.

New Regulations & Compliance in 2025

  • Mandatory registration of all short-term rental properties with the Cyprus Deputy Ministry of Tourism
  • Annual safety inspections and insurance requirements
  • Limits on the maximum number of days properties can be rented annually in residential buildings
  • Stricter tax reporting for rental income

Compliance is now critical, and professional property managers are increasingly in demand to handle legal, cleaning, and guest relations.

Investment Opportunities & Challenges

  • High ROI in well-located, renovated apartments and modern studios
  • Potential for capital appreciation as Limassol’s tourism sector expands
  • Competition from new hotel projects and serviced apartments
  • Risk of oversupply in certain tourist districts

Investors are advised to focus on unique amenities, prime locations, and eco-friendly features to stand out in the crowded market.

2025 Market Forecast

Most analysts expect continued growth in short-term rentals, but at a slower rate due to new regulations and market maturity. Hybrid models—combining short and mid-term leases—are gaining popularity with owners seeking flexibility and higher occupancy.

FAQ: Limassol Short-Term Rentals 2025

  • Can foreigners buy property and operate an Airbnb in Limassol?
    Yes, with proper registration and adherence to local laws.
  • Are there restrictions on short-term lets in apartment buildings?
    Yes, many buildings now have maximum annual rental days and require consent from the building’s management.
  • Is the market still profitable?
    For quality, well-managed properties in central or beachfront areas—absolutely.
  • What’s the best way to maximize occupancy?
    Focus on great photos, professional cleaning, and exceptional guest communication.

Conclusion

Limassol’s short-term rental sector in 2025 offers strong returns for savvy investors and property owners who adapt to the new regulatory landscape. With high tourist demand, urban renewal, and a growing digital nomad community, the city remains one of the hottest destinations for flexible accommodation in Cyprus.