Rent control in Cyprus has long been viewed as a tenant-friendly policy, but according to the Cyprus Property Owners Association, the decades-old Rent Control Law of 1983 is now creating more problems than it solves.
They argue it’s stalling the property market, deterring investment, and contributing to urban decay.
What is Cyprus’ Rent Control Law?
The Rent Control Law was introduced after the 1974 Turkish invasion as a temporary emergency measure to protect tenants during a housing crisis. However, over 40 years later, the law is still in effect, applying to a large number of properties in designated areas.
While it was initially intended to ensure housing stability, property owners now argue that this outdated legislation has outlived its purpose and is negatively impacting the modern Cyprus real estate market.
How rent control impacts the Cyprus property market
According to the Cyprus Property Owners Association, rent control has had several negative consequences:
- Discourages investment: Owners are hesitant to invest in maintenance or upgrades due to strict rent caps and the need for tenant consent – even for essential repairs.
- Urban neglect: Many rent-controlled buildings are falling into disrepair, creating safety hazards and contributing to urban decay in cities like Nicosia and Limassol.
- Market distortion: Artificially low rents in some areas drive up prices in the rest of the rental market, creating unfair competition and worsening housing inequality.
Calls for reform: Why property owners want change
The Association is now calling for either a complete repeal or major reform of the Rent Control Law in Cyprus. Their goals include:
- Restoring balance in the housing market
- Encouraging real estate investment in Cyprus
- Improving public safety through better-maintained buildings
- Supporting a more sustainable and fair rental market
They also argue that property rights are being violated, as landlords are trapped in indefinite rental contracts without the freedom to manage or monetise their assets.
What’s the alternative? Targeted social housing policies
Rather than rely on blanket rent control, the Association suggests that vulnerable tenants should be supported through targeted government programmes – such as rent subsidies or public housing – without distorting the private rental market.
Conclusion: Time to re-evaluate Rent Control in Cyprus?
The debate over rent control in Cyprus is heating up. With property owners voicing growing frustration, and evidence of stagnation and urban decay mounting, the question is whether the country is ready for bold legislative change.
Is it time to modernise property law in Cyprus to better serve both landlords and tenants?
Further reading
Article by Kyprianos Theocharides – the Cyprus Property Owners Association
