Simply districts attract with high rental yields

Munich Real estate investors have been struggling with a problem for years: in many places, apartment prices are increasing by a double-digit percentage each year. Rents, on the other hand, are not keeping pace with this development. The result is falling rental yields. So much so that from the point of view of landlords in large cities, only certain areas are still attractive.

Away from the popular locations, returns of more than six percent can still be achieved. On average, the highest yields can still be achieved in Cologne, followed by Frankfurt, Berlin, Hamburg and Munich.

The proptech Pricehubble looked at individual quarters of the largest cities in Germany, Austria and Switzerland from this point of view. The results, which are exclusively available to the Handelsblatt, show one thing above all: it is often the districts with a mixed reputation that are still worthwhile from a landlord’s point of view.