The rise of proptech enabled investors to own, manage, and monitor properties across the globe through remote management dashboards. Investors are diving into space as a service—a model where flexibility is key. They’re offering space that people can use on demand. This includes both short-term rentals like Airbnb and coworking spaces.

But let’s not get stuck on Airbnb. There’s more to talk about here. Coworking spaces are booming, and they’re a huge part of this space as a service trend. They’re reshaping how people work and where businesses operate.

Why Space as a Service Wins with Investors

Space as a service is all about high returns of 8-10%. It’s not about long-term leases anymore. Tourists want short stays. Freelancers and businesses want flexible workspaces. This model caters to these changing needs.

Coworking spaces are growing fast in places like Paphos and Limassol. Startups, freelancers, and companies are turning to them instead of locking themselves into traditional office spaces. They’re using coworking spaces because it’s a smart way to scale up or down depending on what’s needed at the time. Investors see steady returns from this kind of flexibility.

The Threat from Airbnb

Airbnb is still a huge part of the conversation. The short-term rental market is thriving in Cyprus, and investors have made big moves to capitalize on this. But there’s a risk involved. In many cities like Paris and Barcelona and now Athens, Airbnb is facing restrictions. If similar regulations hit Cyprus, things could look different for those who’ve invested in short-term rentals.

The market isn’t always predictable. Tourism can fluctuate, and regulations could shift the landscape at any moment. Airbnb properties might not always deliver the returns investors expect. That’s the reality in many places.

Airbnb, Gentrification, and Local Housing

Airbnb’s impact on housing is a complicated issue. In some cities, property prices have gone up because of short-term rentals, and locals have been pushed out of their neighborhoods. But that dynamic can change. If Airbnb faces restrictions, those properties could end up back in the long-term rental market. This shift would give locals more access to housing in areas where they’ve been priced out.

Cyprus is no exception, the rise of Airbnb has contributed to increased property prices. If the market moves away from short-term rentals, more opportunities could open up for local residents.

Coworking spaces are on the rise in Cyprus, with more companies embracing remote and hybrid work models. They offer a different kind of space—focused on professionals and businesses looking for flexibility without the commitment of traditional office spaces.

The Future of Space as a Service in Cyprus

The concept of space as a service is making its mark on Cyprus. Whether through Airbnb or coworking spaces, this model is changing how people think about property. Investors are involved, shaping the market and communities  as they continue to evolve.

The real estate landscape in Cyprus reflects broader trends happening across Europe. Whether short-term rentals or flexible office spaces or even coliving the impact of space as a service is being felt in cities across the island.

Want to learn more about the future of space as a service and the risk involved? Let’s talk and explore how these trends are shaping the market.

Until Next Time,

Nikolas Michalias