In the global landscape of residential real estate, one puzzle looms large: rent regulations.

Nations grapple with the delicate balance between tenant protection and investor incentives, with none seemingly finding a solution to appease both sides. Rent control laws protect tenants against sudden price spikes, but critics caution against this, highlighting stifled investment as a result of lower returns, and diminished housing quality, with landlords less inclined to maintain their properties.

The picture is mixed, depending on where you look, and it is in Europe where the most variety can be found, as Fabian John, COO of ZBI Group, which is active across Europe, observes. “In Germany, the Mietpreisbremse [rent freeze] regulates the permissible rent level and is applicable throughout the country,” he says. “In Austria, rent caps began recently, limiting increases in privately financed and public housing to a maximum of 5 percent each year, even if the inflation r