Rental returns are moderate to good in Ljubljana, Slovenia
Residential Valuation Specialist | September 29, 2018
|Last Updated: Sep. 29, 2018|
|LJUBLJANA - Centre flats||COST (€)||YIELD (p.a.)||PRICE/SQ.M. (€)|
|TO BUY||MONTHLY RENT||TO BUY||MONTHLY RENT|
|50 sq. m.||182,050||771||5.08%||3,641||15.42|
|120 sq. m.||438,840||1,716||4.69%||3,657||14.30|
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: Global Property Guide Definitions: Data FAQ See also: Update Schedule
How much will you earn? Gross rental yields on apartments are moderate to good in Ljubljana, at around 4.5% to 5.1% in the city centre, and higher outside. To define terms, the gross rental yield is the rent the landlord will earn - before taxation, vacancy costs, and other costs - compared to the purchase price of the property.
The gross rental yield in the Old Town is about 4.5%-5%. For these areas we used the Global Property Guide´s own research. Outside, in the wider city and in Ljubljana surroundings, we used estimates from the real estate portal Nepremicnine. Their figures suggest that gross rental yields on houses can reach 7.8% in the city, and 10.5% in the city´s surroundings. This is an excellent return.
How much do apartments cost? Apartments in the Old Town of Ljubljana cost on average, EUR 2,900 to EUR 3,200 per square metre (sq.m.). In the nearby areas apartments tend to be cheaper, selling for around EUR 2,300 per sq. m. In the city´s surroundings, EUR 1,450 per sq. m. is more usual for an apartment, EUR 1,000 for a house.
How easily will you rent your property? Anecdotally, properties can be quite hard to let. Ljubljana is a small place. The number of expatriates, embassies, and international companies is small, which again restricts the supply of tenants.
Round trip transaction costs are low in Slovenia. See our Property transaction costs analysis in Slovenia and Round-trip property transaction costs in Slovenia, compared to the rest of Europe.