According to a valuation of Global Property Guide the rental income return for Greece (Athens) is currently at 5,45%, within Europe in the middle.
The Global Property Guide's valuation data is based on upper-end apartments in prestigious areas, such as appeal to foreign renters. They draw their figures from their own, in-house analysis of web advertisements, based on offers for sale, and offers for rent, of good (but not new) apartments.
They begin by defining key upper-end rental districts in the capital city, taking care to keep a database of where the properties are located, so as to ensure some measure of consistency in subsequent years. They carefully select appropriate price ranges and take average prices, rejecting deviant outliers.
When an apartment is sold, the seller is arguably less likely to decorate it to perfect condition, than when renting. So the renting and selling categories may not be precisely comparable. But since they use the same method in all countries, the comparisons across countries should be valid.
They are interested in the sort of properties which will be attractive to foreign renters. This is not always the same type of property in all locations. In Moscow for instance, pre-revolutionary apartments are in demand by foreigners. We have a separate category for these properties, as opposed to newly built apartments.
More usually, they aggregate data for the different types of property. Foreign renters are usually interested in properties which are in excellent condition, with good facilities, and which have been refurbished or redecorated within the last five years. Their properties are therefore likely to be less expensive than the very newest properties, except where new-builds dominate the market. In European cities, they lean towards properties in the historic city centres, therefore the ˇtypical' property is more likely to be a 90-year old refurbished apartment of character, than a newly built apartment.
If rental yields are high, does it mean that it is a good investment option and I should invest immediately?
Rental yields in Greece: Read here http://www.ktimatoemporiki.gr/news/16/
Sq. m. Price, Premier City Centre
Average per square metre price in Euro of a 120 sq. m. apartment located in the centre of the most important city of each country, either the:
Source: Global Property Guide