These areas see the best ratio of the rent and purchase price, ensuring an attractive yield for such an investment.
Instead, in Bucharest’s ultra-central and northern areas, such as Herastrau – Nordului, Kiseleff – Aviatorilor, Dorobanti- Floreasca, Victoriei – Romana – Universitate and Unirii, the ROI is lower, of 5% or even less, considering the purchase prices way above those in crowded districts.
Proprieties that could generate ROI of 7% or even a little over this level are exceptions and are usually located in areas where the supply-demand ratio is unbalanced, in favor of homeowners.
Compared with Central and Eastern European (CEE) markets, investments in residential properties in Bucharest are among the most profitable, generating among the highest yields. Only Warsaw boasts superior yields, of 6.5%, while investments in Prague, Budapest and Vienna generate yields of 4.5%, 5.5% and 3%, respectively. The comparison was made taking into account housing units with two rooms and 55 square meters of useful area.
According to JLL, the star of the residential market will be the multi-family sector (dwellings within residential compounds held by one of several owners, meant for renting), which is expected to see the best performance and minimum changes in the occupancy rate, because the revenue generated by residential properties will remain strong.