"Homes for Residents": Regulating Short-Term Rentals in Residential Zones

Summary This proposal seeks to limit Short-Term Rentals (STRs) strictly to designated "Tourist Zones" and Commercial avenues. By restricting STR licenses in purely residential neighborhoods (e.g., Agia Fyla, Kapsalos, Mesa Geitonia), we aim to return housing stock to the long-term rental market and lower rents for locals and students.

The Problem Limassol is facing a housing crisis. Rents have risen by over 20% in the last year alone. A significant cause is the conversion of standard apartments into short-term tourist accommodation (e.g., Airbnb/Booking), which yields higher profits for landlords but removes supply for families, teachers, and nurses who live here year-round. Neighborhoods are losing their character, becoming "ghost hotels" with transient neighbors.

The Solution We propose a new municipal zoning regulation for 2025:

1. Zoning Restriction: New licenses for Short-Term Rentals will only be granted for properties located within 500 meters of the coastline or in designated commercial zones.

2. "One Host, One Home" Policy: In residential zones, an owner can only rent out their primary residence (e.g., while they are away), preventing investors from buying entire apartment blocks solely for STRs.

3. Phasing Out: Existing licenses in residential zones will not be renewed after a 2-year grace period unless they meet strict criteria.

Why this matters

• Affordability: Returning apartments to the long-term market increases supply, naturally stabilizing or lowering rental prices.

• Community Cohesion: Residential neighborhoods remain stable communities where neighbors know each other, rather than constant tourist turnover.

• Fair Competition: It levels the playing field for legitimate hotels that pay tourism taxes and adhere to safety regulations.

Estimated Cost

• Low: Administrative costs for enforcement officers and software to monitor listing platforms.

• Revenue Positive: Fines from illegal listings can fund affordable housing projects.

Note to the community: We are not banning tourism; we are simply directing it to where it belongs. Limassol must be a city to live in, not just to visit.