In a European property market increasingly defined by low returns and high entry prices, finding cities that still deliver strong rental yields is a challenge - but not impossible. While prime capitals like Paris or Amsterdam may offer stability, their average rental yields are often lower than in other cities. For a detailed comparison of rental affordability, see How much apartment €1,000 a month rents in Europe: 2025 City Comparison Guide. Meanwhile, a select group of cities across Europe continue to outperform, offering gross rental yields of 6% and higher in 2025.
These markets stand out for their combination of affordable prices, solid rental demand, and promising economic trends. Below, we highlight five top rental cities in Europe where investors can still find high yield property Europe - from sunny Portugal to Eastern Europe real estate gems and beyond.
🇵🇹 Sintra, Portugal - High Yield Property Near Lisbon with 7.1% Rental Returns
Nestled just outside Lisbon, Sintra is more than a picturesque UNESCO heritage site - it's also a high cash flow property hotspot. As property prices in Lisbon have soared, many investors and renters have turned to Sintra, where homes remain relatively affordable and tourist traffic remains strong year-round.
In 2025, the average gross rental yield in Sintra is approximately 7.1%, especially for small to mid-sized units near the town center or train line to Lisbon. For example, a renovated one-bedroom apartment purchased for €170,000 might rent for €1000/month, generating a 7.1% yield - positioning Sintra among the best rental yields Europe.
Beyond tourism, Sintra attracts Lisbon-based professionals seeking lower rents and nature. Buy-to-let Europe investors also benefit from Portugal’s liberal property ownership rules - making Sintra a rare blend of charm, property for income Europe, and capital growth potential. Looking for even more affordable cities across the continent? Explore our list of European cities where you can buy property under €50,000 in 2025.
🇱🇻 Riga, Latvia - Invest in Riga Real Estate for 8.2% Gross Yields in a Baltic Tech Hub
Riga continues to lead Eastern Europe real estate in rental yield rankings in 2025. With its growing reputation as a Baltic tech hub, a youthful population, and relatively low apartment prices (averaging around €2,000-€2,500/m²), Riga delivers some of the best rental yields Europe.
Yields of 8.2% are not uncommon, especially for compact city-center apartments rented to young professionals, student rentals Europe, or remote workers. A typical one-bedroom flat purchased for €125,000 can bring in €850/month, translating to 8.2% gross or more. It's no surprise that more investors are looking to invest in Riga real estate.
While the market is smaller and liquidity can be an issue, Latvia’s use of the euro and pro-landlord rental framework keep it attractive. Neighborhoods like Agenskalns and Teika are rising fast - offering strong rental income Europe and potential capital appreciation.
🇲🇪 Podgorica, Montenegro - Cheap Property with High Yield and Easy Residency in 2025
Though often overshadowed by the country’s coastal gems, Podgorica - Montenegro’s capital - is quietly becoming a strong Podgorica property investment hotspot. The city offers a mix of government, student, and expat tenant bases, and in 2025 boasts rental yields averaging 6.4%.
Apartments in Podgorica typically cost €1,700–€2,000/m², with one-bedrooms around €90,000 renting for €500/month or more. Add to that Montenegro’s flat 15% rental income tax Europe, and you have a highly efficient European property ROI environment.
Perhaps the biggest draw is that real estate in Montenegro still grants foreigners the right to residency - a major plus for non-EU investors. With the country steadily advancing toward EU accession, both property values and foreign interest are expected to rise. For cheap property high yield, Podgorica stands out as one of the top property markets 2025. Montenegro is also among the few countries in Europe where property ownership can still lead to residency. Learn more in our article on How to Get Residency Through Real Estate in Europe.
🇲🇩 Chișinău, Moldova - Chisinau Rental Property Offers Europe’s Highest Yields (8%)
For adventurous investors willing to explore Europe’s edge, Chișinău offers Chisinau rental property yields that can exceed 8%. The Moldovan capital remains one of the cheapest cities in Europe for real estate, with average apartment prices €1,200-€1,700/m² in many districts.