Gross yield (Bruttomietrendite)
Annual cold rent (Kaltmiete, excluding Nebenkosten) divided by the purchase price. Fast, useful for screening, and always flattering.
Gross yield = (monthly cold rent × 12) ÷ purchase price
Net yield (Nettomietrendite)
Subtract the costs the owner carries, and divide by the total invested including closing costs. Costs that are not passable to the tenant:
- Administration fee in the Hausgeld (Verwaltergebühr)
- Maintenance reserve (Instandhaltungsrücklage)
- Repairs inside the unit and bank/account charges
- A vacancy and rent-loss allowance (2%–3% of rent is prudent)
Net yield = (annual cold rent − owner-borne costs) ÷ (purchase price + closing costs)
Worked example
| Purchase price | €300,000 |
| Closing costs (8%) | €24,000 |
| Monthly cold rent | €950 |
| Annual cold rent | €11,400 |
| Owner-borne costs per year | €1,800 |
| Gross yield | 3.80% |
| Net yield | 2.96% |
The gap between 3.80% and 2.96% is exactly why a headline yield should never decide a purchase.
Typical gross yield ranges by city
| Market | Gross yield | Character |
|---|---|---|
| Munich | 2.5% – 3.2% | Lowest yields, strongest capital growth history |
| Berlin | 2.8% – 3.8% | Rent-regulated, high tenant demand |
| Hamburg | 3.0% – 3.8% | Stable, low vacancy |
| Frankfurt | 3.0% – 4.0% | Corporate tenant base |
| Cologne / Stuttgart | 3.2% – 4.2% | Balanced entry price and rent |
| Leipzig / Dresden | 4.0% – 5.5% | Higher yield, more location-dependent |
Indicative ranges for well-located existing apartments; individual buildings vary widely.
Cash flow is not the same as yield
With a typical annuity loan at around 3.5% interest plus 2% repayment, an apartment at a 3% net yield will not self-finance from rent alone. Two levers matter: your equity share and the interest rate. Tax depreciation (AfA, usually 2% of the building value per year) plus deductible interest often turns a slightly negative pre-tax position into a neutral one — model it before you commit. Also remember German tenant protection: Kauf bricht nicht Miete means you inherit the existing lease and its rent.
Run it on a real listing
Every property in our portfolio shows cold rent, Hausgeld and tenant status, so a net yield can be calculated in minutes.
Informational only, not investment or tax advice.