The yield of a rental is determined as the ratio between a home’s acquisition price and the price of rent for the same home. The higher the yield, the more profitable the investment in said home.
Bucharest is attractive for real estate investors as yields are high and rental income tax is relatively low in Romania. The best rental yield in Bucharest is for apartments located away from the city center and for certain boutique-type projects in the city center, where rents are above the area average.
At an average acquisition price of EUR1,000/sqm, the rental yield is 5.09%, while for an acquisition price of EUR1,762/sqm, the yield is 4.65%, the study notes. Imoteca experts said rent yields range between 5% and 7%, but some projects get even higher yields deepening on quality of construction, amenities, location or other benefits for tenants.
Sofia is number one in Europe by rent yields for apartments outside the city center, while Brussels is number for for central apartments rentals.
In the Bulgarian capital, at an average price of EUR977/sqm away from the city center, rental yields stand at 5.93%, the highest among the 17 capitals analyzed. In Brussels, the biggest yield is generated by central apartments, of 5.55% at an acquisition price of EUR3,208/sqm.
At the opposite end, the lowest rent yields are in Vienna and Paris, below 3%.