Illegal tourist apartments remain a problem: the law does not allow on-site inspections

Despite significant progress in regulating the self-catering tourist apartment market over the past two years, the problem of illegal accommodation facilities in Cyprus persists. This was stated by the Secretary General of the Association of Self-Catering Tourist Apartments, Konstantinos Karakontes, speaking on the program “Mesimeri kai Kati” on Sigma TV.

According to him, the number of licensed apartments has doubled annually over the past two years, indicating a gradual organization of the market. Today, the number of officially registered units is approaching 10,000, which represents a substantial share of all operating apartments.

At the same time, Karakontes noted that properties continue to operate without registering in the registry of the Deputy Ministry of Tourism, creating unequal competitive conditions.

“This directly affects us as well. The Association has repeatedly submitted complaints to the Deputy Ministry of Tourism regarding illegally operating apartments,” he stressed.

The key issue, he said, remains the current legislation, which does not allow inspectors to conduct on-site checks:

“A public official has no right to simply knock on the door and enter a private residence — this is prohibited by law.”

As a result, oversight is limited to what can be identified online, which does not allow for effective action against illegal activity.

Commenting on price increases, the Association’s representative confirmed that accommodation prices in the sector have risen by 8–12% nationwide. However, he emphasized that this is primarily due to higher operating costs, including electricity, cleaning, and other mandatory expenses.

Despite the increase, self-catering apartments remain a more affordable accommodation option, especially during the summer season, and continue to be in demand among Cypriots.

Regarding investment attractiveness, Karakontes noted that returns from short-term rentals strongly depend on location. Purely residential areas, he said, are not suitable for this format, and revenues in non-tourist zones are significantly lower.

In such cases, he added, long-term rental may be a more rational choice. The Association, he said, advises investors individually based on the specifics of each area:

“Each zone has its own purpose.”