Apartments in Romania: how mortgages and market analytics bring 12% per annum

Numbers that will surprise you The average price per square meter in Bucharest is 2100 € (in the center up to 3500 €). Rent of a one-room apartment - 550–700 €/month. This gives a gross yield of 10–12% per annum, which is higher than Berlin (4%) and Warsaw (6%). Why is it so cheap? Romania still remains in the shadow of Hungary and the Czech Republic, but construction in Northern Bucharest is active, and demand from IT specialists (Cluj is the second Silicon Valley of the EU) is growing by 20% per year. Mortgage for a foreigner - a reality Contrary to myths, a non-resident can take out a loan in Romania. Conditions from Banca Transilvania and BRD: first payment - from 25% (for non-residents up to 40%); rate - 6.5–8.5% in euros (fixed for 5 years); term - up to 25 years; a residence permit is required (can be issued through opening an individual entrepreneur or company in 2-3 weeks). Our client example An investor from the Netherlands bought a 42 m² studio in the Timisoara area for €82,000. Mortgage 60% at 7%. Rent via Airbnb - 1100 €/month during the season (May–September) and 650 €/month the rest of the time. Total for 2025: Rental income: 10,200 € Expenses (tax 10%, management 8%, utilities): 2500 € Mortgage interest: 3400 € Net Cash-on-Cash return: 11.7% Risks that realtors are silent about Income tax for non-residents is 10% at source (withheld by the tenant-legal entity or platform). You can optimize through a Romanian individual entrepreneur - 3% rate on income up to 60,000 €/year. Secondary housing - often without an energy certificate and with illegal redevelopment. Require an energy certificate of class B or higher - otherwise you will sell at a 20% discount. Communist panels - the walls are made of asbestos, and the meters are shared. Buy houses built after 2005.