Moderate to good rental yields in Bucharest, Romania

Residential Valuation Specialist | August 31, 2019

Last Updated: Aug. 31, 2019
Bucharest 2-BR apartments COST (€) YIELD (p.a.) PRICE/SQ.M. (€)
TO BUY MONTHLY RENT TO BUY MONTHLY RENT
1 Mai-Domenii 78,042 440 6.77% 1,449 n.a.
13 Septembrie 81,300 417 6.15% 1,563 n.a.
Alba Iulia-Decebal-Muncii 101,712 477 5.63% 1,618 n.a.
Aviatiei 108,363 602 6.67% 1,817 n.a.
Baneasa 81,262 475 7.01% 1,382 n.a.
Berceni-Giurgiului 50,493 314 7.46% 997 n.a.
Bucuresti 61,547 395 7.70% 1,134 n.a.
Bucurestii Noi-Damaroaia 70,785 423 7.17% 1,209 n.a.
Colentina-Obor 57,828 336 6.97% 1,072 n.a.
Crangasi-Giulesti 61,873 447 8.67% 1,155 n.a.
Drumul Taberei-Ghencea 54,759 309 6.77% 1,037 n.a.
Floreasca-Dorobanti 92,114 451 5.88% 1,701 n.a.
Grivita-Gara de Nord 56,975 384 8.09% 1,122 n.a.
Iancului 67,548 356 6.32% 1,219 n.a.
Militari 58,538 336 6.89% 1,065 n.a.
Mosilor-Dacia 75,087 457 7.30% 1,386 n.a.
Pantelimon 57,986 307 6.35% 1,109 n.a.
Rahova-Sebastian 53,113 349 7.89% 998 n.a.
Stefan cel Mare-Tei 66,241 461 8.35% 1,261 n.a.
Tineretului-Timpuri Noi 84,070 406 5.80% 1,410 n.a.
Titan-Dristor 59,293 358 7.25% 1,068 n.a.
Unirii 75,012 481 7.69% 1,259 n.a.
Universitate-Kogalniceanu 71,920 458 7.64% 1,469 n.a.
Victoriei-Romana 77,536 466 7.21% 1,448 n.a.
Vitan 84,773 419 5.93% 1,411 n.a.
Bucharest 3-BR apartments
1 Mai-Domenii 132,647 665 6.02% 1,707 n.a.
13 Septembrie 109,108 540 5.94% 1,317 n.a.
Alba Iulia-Decebal-Muncii 132,171 619 5.62% 1,593 n.a.
Aviatiei 187,384 1,097 7.03% 1,786 n.a.
Baneasa 136,779 740 6.49% 1,504 n.a.
Berceni-Giurgiului 71,307 385 6.48% 979 n.a.
Bucuresti 85,291 534 7.51% 1,118 n.a.
Bucurestii Noi-Damaroaia 93,413 695 8.93% 1,100 n.a.
Colentina-Obor 74,157 433 7.01% 1,043 n.a.
Crangasi-Giulesti 73,550 465 7.59% 1,090 n.a.
Drumul Taberei-Ghencea 71,253 390 6.57% 993 n.a.
Floreasca-Dorobanti 155,782 789 6.08% 1,926 n.a.
Grivita-Gara de Nord 87,114 n.a. n.a. 1,054 n.a.
Iancului 84,228 461 6.57% 1,120 n.a.
Militari 76,486 414 6.50% 1,019 n.a.
Mosilor-Dacia 122,314 612 6.00% 1,440 n.a.
Pantelimon 71,256 395 6.65% 1,009 n.a.
Rahova-Sebastian 68,380 407 7.14% 961 n.a.
Stefan cel Mare-Tei 107,389 417 4.66% 1,301 n.a.
Tineretului-Timpuri Noi 106,992 498 5.59% 1,441 n.a.
Titan-Dristor 78,365 429 6.57% 1,061 n.a.
Unirii 144,615 628 5.21% 1,683 n.a.
Universitate-Kogalniceanu 110,667 571 6.19% 1,345 n.a.
Victoriei-Romana 111,955 644 6.90% 1,315 n.a.
Vitan 116,071 532 5.50% 1,383 n.a.
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.
Source: Anuntul 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

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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