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.
A decent one-bedroom apartment can be acquired for €70,000–€80,000, while rental income may reach €500/month — producing yields of 8% or more. For those focused purely on cash flow, this is one of the best property for income Europe opportunities.
Tenant demand comes from locals, students, NGOs, and an expanding base of expats and remote workers. While Moldova carries higher political risk and lower liquidity, it still offers one of the most attractive yield profiles in Eastern Europe real estate for the bold.
🇪🇸 Barcelona, Spain – Property in Barcelona Surprises with 6.5% Rental Yields in 2025
While known more for high prices than high yields, Barcelona has defied expectations in 2025 with average gross rental yield of 6.5% — particularly in non-central districts or mid-sized tourist rentals.
In areas like Sants or Nou Barris, investors are purchasing 60 m² apartments for €260,000–€280,000 and renting them for €1,400–€1,500/month, especially when licensed for short-term rentals. This makes Barcelona not only a lifestyle destination but a key player in the Spain real estate market and a source of consistent rental income Europe.
With a strong influx of digital nomads and student rentals Europe, plus favorable mortgage conditions, property in Barcelona is becoming an increasingly attractive buy-to-let Europe option — combining cosmopolitan lifestyle with dependable income.
📊 Comparison: Top 5 Cities with High Yields in 2025 (1 bedroom apt.)
<table> <tbody> <tr class="blue-row" > <td><strong>City</strong></td> <td><strong>Avg. Purchase Price</strong></td> <td><strong>Avg. Monthly Rent</strong></td> <td><strong>Gross Yield</strong></td> <td><strong>Key Investor Benefit</strong></td> </tr> <tr> <td>Sintra 🇵🇹</td> <td>€170,000</td> <td>€1000</td> <td>7.1%</td> <td>Proximity to Lisbon + tourism flow</td> </tr> <tr> <td>Riga 🇱🇻</td> <td>€125,000</td> <td>€850</td> <td>8.2%</td> <td>Strong demand, tech-driven growth</td> </tr> <tr> <td>Podgorica 🇲🇪</td> <td>€90,000</td> <td>€500</td> <td>6.6%</td> <td>Easy residency for investors</td> </tr> <tr> <td>Chișinău 🇲🇩</td> <td>€75,000</td> <td>€500</td> <td>8%</td> <td>Ultra-low entry price, strong cashflow</td> </tr> <tr> <td>Barcelona 🇪🇸</td> <td>€270,000 (some districts)</td> <td>€1,500</td> <td>6.6%</td> <td>Big city + strong tenant diversity</td> </tr> </tbody> </table>For further analysis of rental trends and legal frameworks, check out our article on Real Estate Market in Italy: Regional Price Trends and Opportunities in 2025.
Or compare lifestyle and cost in two top Central European cities: Prague vs Vienna – Which City Offers a Better Cost of Living in 2025?
Final Insight: How to Maximise Rental Income in Europe’s Best Property Markets in 2025
Despite soaring prices in many major cities, real estate investors in Europe can still find high yield property Europe — especially if they’re willing to explore smaller markets or look beyond traditional hotspots.
Sintra offers coastal charm, Riga stands out with its growing tech scene, and Podgorica is emerging as a promising investment hub — each city highlights a different strategy for maximizing European property ROI. Some markets prioritize stable rental income, others offer long-term growth or even residency opportunities, but all deliver a compelling balance of potential and profit.
And while higher yields often come with a dose of risk, smart investors know that balancing cash flow with stability is key to building a winning property portfolio for income in Europe.
Want to explore more best countries for rental income and top rental cities in Europe? Visit our “Countries” section to discover detailed insights on average purchase prices, rental income tax Europe, legal buying processes, and ownership options for foreigners across Europe’s most promising real estate markets.
Subscribe to our Telegram channel to stay updated on the latest news and updates in the real estate market.