What it means for landlords and tenants

By Pavlos Loizou, CEO of Ask Wire

Interviewer: Andreas, whose house is this? 

Andreas: Mine. 

Interviewer: Who lives in it? 

Maria: I do. I pay rent. 

Interviewer: And who pays to keep it nice? 

Andreas: Nobody. 

This exchange between Andreas, the landlord, and Maria, his tenant, illustrates the broken incentives shaping today’s rental markets. Andreas knows his apartment will rent regardless of its condition, so why spend thousands on insulation, plumbing, or repairs? Maria, tied to a 12-month lease, will never recover what she invests. The result is predictable: deteriorating properties, higher rents, and mounting frustration. This is not just neglect — it is the logic of financialisation. 

What is financialisation? 

Housing is no longer primarily viewed as shelter but as an investment vehicle. Owners seek yield and capital appreciation; tenants shoulder rising costs with limited protections. Globally, this shift is most visible in markets where demand exceeds supply. In Cyprus and Greece — small, open economies with inflows of foreign capital — the effects are particularly stark. 

The numbers behind the shift 

Greece: Around 35 per cent of households rent today, compared with 25 per cent a decade earlier (Eurostat, 2023). Short-term rental platforms expanded from fewer than 20,000 listings in 2015 to over 145,000 in 2024, including more than 40,000 in Athens (Bank of Greece, 2024). This diversion of stock has pushed up long-term rents by over 30 per cent since 2018. One in six renters now spends at least half their income on housing. 

Cyprus: Rents in Nicosia climbed 48 per cent between 2016 and 2024, while Limassol rents doubled in some districts (Ask Wire data, 2025). The island hosts around 16,000 short-term rental properties, yet only half are formally registered (Deputy Ministry of Tourism, 2024). Annual rent growth remains above 3 per cent, well above wage increases. 

Foreign investment: Since 2013, Greece’s Golden Visa scheme has attracted over €4.3bn, mostly into property (Ministry of Migration Policy, 2024). In Cyprus, more than 53,000 properties were purchased by non-EU nationals between 2015 and 2025 (Interior Ministry, 2025). These flows treat property primarily as a wealth store, not as housing stock. 

The consequences for Andreas and Maria 

Andreas (landlord): Rationally maximises return. If tourists or new arrivals will pay regardless, there is little incentive to invest in maintenance. A short-term listing can generate nearly double the monthly income of a conventional lease. 

Maria (tenant): Faces higher rents, shorter contracts, and weak rights. Rent-controlled zones exist only in limited areas in Cyprus, and enforcement is lax. In Greece, rent inflation outpaces incomes, forcing many households into housing stress. 

The long-term risks 

Financialisation risks splitting both markets in two: premium assets for investors and a decaying stock for locals. This undermines affordability, weakens social cohesion, and erodes urban vitality. The incentives are simply misaligned: landlords focus on yield, tenants are transient, and no one invests in the long-term quality of housing. 

So what? 

Short-term winners: landlords like Andreas. 

Long-term losers: tenants like Maria, and ultimately the cities themselves. 

Policy levers exist: longer leases, tax incentives for maintenance, mandatory registration of short-term rentals, and better enforcement. Without such measures, the “black hole” between Andreas and Maria only deepens — and housing continues to drift from home to mere financial instrument.