Cyprus Legislation: Rent Controlled Areas Still See Increase in Rental Prices


The determination of fair rent by the court regarding houses and shops situated in Rent Control areas is regulated by the Cyprus Rent Control Legislation, which provides:

“No sudden increase in rent can be imposed upon a statutory tenant unless it is stated in the contract. In the event that a landlord wishes to increase rent both the tenant and the landlord are within their rights to apply for a reasonable price valuation which establishes a reasonable rental amount for the property. However, there is a reservation that no application can be submitted before the lapse of two years from the date the tenant’s contract start date, or from the last increase or reduction in the rent.”

It is also lawful for the tenant and landlord to enter into negotiations and agree any other increase of the rent, provided the increase will not be higher than the rate stated as per relevant reasonable rental pricing.

The Council of Ministers in Cyprus released a recommendation that the maximum increased rate cannot be higher than the one defined every two years as per an order of the Minister of Justice. The maximum threshold was originally 14% and was gradually reduced to 0% from April 2013 until April 2019.

However, there is a clause which is not affected by the increase rate and provides that the fair rent can be determined based on 90% of the average rents within the same area to the rented premises. Therefore, if the rent payable is lower than the average price of rent in the area, the landlord can lawfully increase it and determine the raise on this basis.

For the determination of the fair rent, there is a requirement for the preparation of a valuation by an expert appointed by the court taking into account:

  • The market rent.
  • The average rents of the proximity area.
  • Building age, size, location, the condition of the premises.
  • Whether the landlord carried out any renovations on the property.
  • Any other associated costs or relevant services provided.

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