Yields in Warsaw and Krakow are good, at around 6%
Residential Valuation Specialist | August 01, 2017
|Last Updated: Aug 1, 2017|
|Mokotów - Apartments||COST (€)||YIELD (p.a.)||PRICE/SQ.M. (€)|
|TO BUY||MONTHLY RENT||TO BUY||MONTHLY RENT|
|90 sq. m.||236,160||1,185||6.02%||2,624||13.17|
|120 sq. m.||304,800||1,679||6.61%||2,540||13.99|
|Śródmieście - Apartments|
|90 sq. m.||233,280||1,312||6.75%||2,592||14.58|
|120 sq. m.||335,160||1,535||5.50%||2,793||12.79|
|90 sq. m.||209,790||1,017||5.82%||2,331||11.30|
|120 sq. m.||269,400||1,433||6.38%||2,245||11.94|
|90 sq. m.||199,620||1,076||6.47%||2,218||11.96|
|120 sq. m.||265,800||1,254||5.66%||2,215||10.45|
All yields are gross - i.e., before taxes, repair costs, ground rents, estate agents fees, and any other costs. Net yields (what you´ll really earn) are typically around 1.5% to 2% lower.
Warsaw: Mokotow, Śródmieście, Wilanów, Żoliborz
Krakow: Kazimierz, Stare Miasto/Old Town
Source: Global Property Guide Definitions: Data FAQ See also: Update Schedule
Gross rental yields, i.e., the gross return on investment in an apartment if fully rented out, in the centre of Warsaw, are 6.0% for a 90 square metre (sq. m.) apartment. Such an apartment might cost around EUR 1,200 per month to rent, but around EUR 235,000 to buy. There are similar yields on 120 sq. m. apartments, though prices and rents are obviously higher.
These are good yields. Such good yields are obtainable in all Warsaw´s central areas such as Mokotów, Śródmieście, and in other areas too. 6% is the normal yield throughout the city, and very small apartments are likely to yield even more (though we don´t have the research to substantiate this).
Surprisingly, the same is true of Krakow. Apartments here are broadly similar in price to the less central areas of Warsaw. They return rents of around EUR 11 - EUR 12 per sq.m. per month. A 90 sq. m. apartment in Krakow will cost you around EUR 200,000, and rent for around EUR 1,100, producing a yield of 6.5%.
The big downside is that round trip transaction costs are high in Poland. See our Poland transaction costs analysis and our Transaction costs in Poland compared to other countries.