8-12% Promised, 5-6% Received: Expert Discusses Real Estate Returns in Europe

Investors in European real estate should critically assess the advertising promises of high returns. The actual returns in Poland and the Czech Republic often hover around 5-6% per annum, although the market features offers promising 8-12%.

This was stated in an interview with Delo.ua by Anton Taranenko, CEO of Antagroup, an investor and expert in tourism and international business.

"Today, many promise 8-12% per annum, but in my opinion, the actual return is often around 5-6%. And for Europe, this is a very good result," Taranenko noted in the interview with Delo.ua.

According to him, the average return on real estate in Poland can be about 5% per annum, while in the Czech Republic, it is around 5-6%. Prague, in particular, has the potential to show higher figures due to the demand for housing being less dependent on seasonality.

In Hungary, the expert estimates returns at about 4-5% per annum. In Romania, returns largely depend on the specific region and the level of domestic demand.

Taranenko emphasizes that when evaluating real estate, investors should look not only at potential returns but also at how easy it will be to rent or resell the property.

"The main thing is to understand that Poland, the Czech Republic, Hungary, and other countries in the region benefit from domestic demand. There is the possibility not only to resell the property to another foreigner but also to rent it out to local residents. That is why real returns of 5-6% per annum are quite possible there," the expert explained.

According to him, the presence of domestic demand makes such markets more predictable. If the property is rented not only to tourists or foreigners, the investor has more options for monetizing the asset.

At the same time, the main focus for Ukrainian investors in foreign real estate is currently Spain. According to Taranenko, in terms of investment flow, it has already surpassed Poland.

Among the more accessible Spanish destinations for investors, the expert mentions Alicante and Valencia. The attractiveness of these cities is not only linked to the potential for rental income.

"Many people buy real estate there as a sort of 'backup option' -- in case the war spreads to other countries in Europe and they need to relocate. At the same time, there is the sea, tourist traffic, the possibility of personal residence, and renting it out," he said.

Poland remains an important market for Ukrainians. Besides a large number of Ukrainian tenants, an additional advantage is the possibility of accessing European financing.

"You can get loans at 3-5% per annum, and this is a very attractive tool," Taranenko noted.

The expert advises not to focus solely on the yield figure presented by the developer.

"There are many pitfalls. I also invested based on certain promised figures, but reality shows that you need to pay much more attention to trends," Taranenko said.

According to him, the market situation can change rapidly: a location that is in high demand today may lose some tourists or tenants tomorrow.

"Any investment should evaluate not only potential profit but also risks," the expert emphasized.

In his opinion, four factors are particularly important for investors: domestic demand, tourist traffic, the possibility of reselling the property, and access to financing.

At the same time, Taranenko identifies locations with a stable flow of people and minimal seasonality as the most reliable for hotel investments -- including major city centers, transport hubs, airports, and large logistics centers.

"In fact, it doesn't matter much whether it's the sea, mountains, or historical attractions. The main thing is the flow of people there," the expert explained.

According to him, this is why investors should assess not just the beautiful location as such, but its logistics, accessibility, popularity, and the already established flow of tourists or local residents.

It should be noted that in the current season, expenses for summer vacations in Ukraine have increased by 25-40% compared to 2025. The biggest hit to wallets has come from accommodation, which accounts for up to 50% of all expenses. The focus of summer vacations has shifted to mountain resorts and urban tourism.