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May 24, 2016

Moderate to good rental yields in Bucharest, Romania


Last Updated: May 24, 2016
BUCHAREST - flats COST (€) YIELD (p.a.) PRICE/SQ.M. (€)
TO BUY MONTHLY RENT TO BUY MONTHLY RENT
70 sq. m. 106,050 552 6.24% 1,515 7.88
120 sq. m. 190,920 966 6.07% 1,591 8.05
Aviatiei, Aviatorilor, Baneasa, Calea Victoriei, Conlentina, Cotroceni, Domenii, Dorbanti, Drumul Taberei, Kiseleff, Primaverii, Pipera, Scoala Herastrau
Source: Global Property Guide Definitions: Data FAQ See also: Update Schedule

Houses and apartments are not expensive in Bucharest, at around 1,500 euros per square metre (sq. m.). 

  • a 120 sq. m. apartment in Bucharest will cost around 190,000 euros
  • a 70 sq.m. apartment in Bucharest will cost around 105,000 euros

The purchase price of apartments in Bucharest is around 1,550 euros per sq. m..

How much can you earn?  Bucharest´s rental yields are good:

  • a 120 sq.m. apartment can rent for about 950 euros per month, earning a rental yield of 6.1%.
  • a 70 sq. m. apartment can rent for about 550 euros per month, earning a rental yield of 6.1%

Please note that our prices primarily represent very well-maintained apartments. We have used the “useful area” instead of the “built area” when we computed for the sq. m. prices because we only included old apartments in our survey. When one buys an old apartment in Bucharest, one buys the useful area. But when a developer sells an apartment, he sells the built surface. Therefore, the buyer becomes co-owner of the conjoint spaces.

Currency risk: over the past four years the Romanian Leu has remained largely stable against the euro.

Conclusion:  Bucharest is a bargain. In only a few European countries are homes less expensive than in Romania.  Even more important, Romanian price to rent ratios are very low.  Romania is growing rather rapidly, so there is upside potential. But, well, it very much depends whether you want exposure to Romania given that gross rental yields are good, but not extraordinary.

Round trip transaction costs are moderate in Romania. See our Romania transaction costs analysis and our Residential property transaction costs in Romania compared to other countries.






Comments

#1 DANIELA | June 28, 2010

Indeed, these prices are very exaggerated, in Baneasa, for example, you can buy apartment 120.000

Daniela, Baneasa

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