How to earn 10 – 12% per year on apartments for rent in Lviv
Thousands of apartments are proposed for daily rent in touristic city Lviv. The most popular are the apartments which are located directly on the Market Square and around it – with views of the medieval streets.
According to local realtors, these apartments have the highest profitability in Ukraine today, which attracts many Ukrainian and foreign investors.
Apartments on Rynok Square are bought mainly by non-Lviv residents – buyers from Kyiv, Dnipro, Kharkiv, often foreigners.Head of the Lviv regional branch of the Association of Realtors of Ukraine, Andriy Borysov
First, investors renovate apartments and then rent out daily. After all, this residential real estate in the city center on a daily basis gives from 8 to 12% of annual income. No real estate in Paris, Milan, London gives such interest, because it is much more expensive at the start. The average check of profitability in Europe is 3.7 – 4.8% per year.
Good profitable European real estate will pay off in 35 years, and in Ukraine, investors can have their money back in 8 – 12 years.
According to real estate experts, even an apartment in Kyiv will not give such a high rate of return of investment. If someone buys an apartment on Khreshchatyk at a price of $ 4 thousand per square meter. m and give it for rent, he may can get a maximum of 8 – 10% per year.
And in Lviv now the apartments themselves are cheaper – there are no such prices as $ 4 thousand per square meter. m, and the flow of visitors to the city is the same as the capital.
Lviv also has benefits towards Odessa, which is known for its high daily rent, but it is very tied to the summer season. “There are 2.5 warm months a year in Odessa and that’s the end of it. And in Lviv they walk all year round. There are no restrictions: summer is over, autumn has started with the Publishers’ Forum, and then Christmas, and other festivals.
Two-room apartments with windows overlooking the Market Square or the side medieval streets are most in demand.
For example, an apartment in a UNESCO World Heritage Building is valued at $ 2,000 per square meter. m. Dialy rent price is 2 thousand UAH (80 dollars), and on festival days, for example, Leopolis Jazz Fest – 160 USD per night. The apartment was used 20 days a month.
According to experts, residential real estate is more interesting and stable than commercial real estate, which depends on political processes and quarantine restrictions. As a last resort, you can sell at a break-even and even at a higher price.