Actions must be taken to curb the phenomenon of short-term tourist rentals by private individuals as the unregulated sector is fueling the housing crisis, the head of the real estate agents’ association said on Thursday.

Legislation enacted over the matter in 2020 had been reviewed by the House energy, trade, industry and tourism committee on Tuesday.

It is not the first time real estate agents have called for a ban on short term rentals dominated by online platform Airbnb, charging that the lack of a streamlined approach effectively deprives the market – and Cypriots looking for housing – of thousands of available options.

“Over the past two years we have repeated our intense concerns about [these] effects, but nothing has been done,” Marinos Kineyirou told the CyBC.

Kineryirou went on to list the interconnected problems arising for Cypriot residents as well as the real estate industry, which include weakened criteria and avoidance of taxes owed to the state. Only one third of self-catering accommodations are properly registered with the deputy ministry of tourism and gaps in the regulatory framework persist.

“Aside from this, whole swathes of the island are being turned into [effective] tourist zones when they are supposed to be residential,” he said.

Kineyirou argued this was a glaring inconsistency, at a time when planning departments come under fire for failing to uphold zoning regulations, while “any individual owning properties in a residential area can turn them into holiday lettings.”

The image of Cyprus as a tourist destination is tarnished when such unmonitored properties are rented out, Kineyirou added.

In contrast to hotels, which require all sorts of certifications, registering one’s residential property as a short-term rental with the ministry is a facile process, which does not include any type of evaluation for safety, quality, or a guarantee that prices charged are justified, he said.

The only solution for real estate agents is the banning of such property arrangements and regulation of the sector with full transparency and quality assurance mechanisms in place, Kineyirou added.

Organised holiday complexes are available at a broad price range and sufficiently meet tourist needs, the real estate agents’ head said.

Long term rentals had repeatedly proved to be more profitable for owners in the long run, Kineyirou claimed.

Above all there is no way to bring down rental prices for locals while a dearth of properties persists, he said.

“Cities in Greece, Barcelona, New York, London and others have taken measures to resolve these problems for their residents,” he noted.

Kineyirou rubbished claims that real estate agents were merely attempting to further their own interests, insisting that regulations must be applied equally to all individuals operating tourist facilities and that there was no other solution to the housing crisis for Cypriots.

“Why do we have a deputy ministry of tourism or a planning authority if they are not doing their jobs for thousands of [illegal] operations?”