Yields of new apartments in Romania
- The average yields are about 5%
- The projects in the semi-central area of Bucharest have the best returns
- Central District 4 Elements has a yield of 7.5%
The yields on the rents of the apartments in Bucharest amount to an average of about 5%, which attracts the small investors who create their portfolios for renting apartments, and the city is attractive for those who invest in real estate because it offers a good yield and the tax for the related rents it is quite low in Romania.The best yield in Bucharest are the apartments located further from the center, but also some boutique projects in the center of the capital, where the rent far exceeds the average of the area. At an average price per square meter of 1,000 euros, the yield from rents is 5.09%, while for a home in the center that has a price of 1.762 euros / sqm the yield is 4.65%.In general, the rent yields vary from 5% to 7%, but there are projects that have even better returns depending on the quality of the work, facilities, proximity or other benefits to the tenants.For example, the apartments in Central Apartments 4 Elemente, a project developed by Forty Management, have a yield only of about 7.5% of rental income, and 80% of the apartments have already been sold, before the end of the project, in the autumn of next year. Moreover, all the 70 studios in the project that includes 192 housing units were sold quickly, and the high yields are due to the developer strategy, affordable luxury and smart development, which offers a sale price ratio – very good quality, with room for sale. appreciation of the value of the project over time.“Our strategy and experience of over 20 years in the real estate area allows us to sell at decent prices. Although the prices have increased naturally, now in Central District 4 Elements we have prices of 1,250 euros / sqm, and they provide good returns for investors, who receive about 5,000 euros from the annual rents only from the studios of the project ”, says Lucian Azoiței, CEO Forty Management.Central District 4 Elements is located in Titan, on Fizicienilor Street, and even though 80% of the housing units were sold, the developer opened a showroom that includes a studio and a fully furnished and equipped two-room apartment, whose design can be cloned on request in the apartments purchased by customers, at an extraordinary cost.
Read entire article