Brasov, Cluj Napoca and Constanta are three of the cities investors most often consider when they want to buy a home to let outside Bucharest. Each has a different economy, a different kind of tenant and specific risks. There is no single best city for everyone. There is, however, a city that suits your budget, your strategy and your tolerance for risk.
This article does not promise returns and does not forecast prices. It gives you a comparison framework and the questions to ask yourself before buying. For current figures, use the Empire Terra price index, calculated from the listings on the platform, and always check data against several sources.
How an investor thinks
Before the city, decide on the strategy. The basic questions are:
- Long term or short term letting? The first gives steadier income and less effort. The second can bring higher income in season but means intensive management, local rules and periods with no guests.
- Monthly income or capital growth? Some areas offer good rents relative to price, others are chosen for long term appreciation potential.
- Manage it yourself or delegate? If you live in another city, the cost of a property manager must be included.
- Buy with a mortgage or with your own funds? The loan payment changes the cash flow calculation completely.
How to calculate yield properly
Gross yield is the annual rent divided by the total purchase price. It is useful for quick comparisons but incomplete. Net yield deducts from the rent:
- periods when the home is empty;
- tax on rental income;
- repairs and furniture replacement;
- the repair fund and other costs that stay with the owner;
- insurance;
- management or platform fees, if any.
And in the denominator, add to the price of the home all the buying costs and furnishing costs. For quick simulations you can use the calculators on the site.
A worked example with illustrative figures
The figures below are round and purely for teaching purposes; they do not describe any particular city. Suppose an apartment costs €100,000 and buying and furnishing costs add another €8,000. The total investment is therefore €108,000. If the rent is €550 a month, the theoretical annual income is €6,600, and the gross yield on the total investment is just over 6%.
Now apply reality. Assume one month a year without a tenant, so income falls to €6,050. Deduct the tax on rental income, insurance, the repair fund and an amount set aside for repairs and furniture. The net result can end up noticeably below the gross yield. The exercise shows why two apartments with the same rent can produce very different results, and why it is worth running the calculation for each property with its own real figures.
Cluj Napoca
Demand profile
Cluj Napoca is a major university centre and a hub for technology and services. That creates steady rental demand from students, young professionals and families moving for work.
What to watch
- Purchase prices are generally among the highest in the country, which can compress gross yield. Compare the price per square metre carefully with the rents actually achieved, not the ones asked.
- Areas close to universities and offices have good demand but also strong competition between landlords.
- New projects on the outskirts can be more affordable, but check infrastructure, transport and traffic to the centre.
- Tenant profile: students often prefer small apartments, while professionals look for good finishes and parking.
See the current listings on the Cluj Napoca property page.
Brasov
Demand profile
Brasov combines an industrial and service economy with a strong tourism component, thanks to its historic centre and its closeness to the mountains. Besides long term tenants, there are short term guests, especially at weekends and in the tourist seasons.
What to watch
- Short term letting can be attractive in central areas, but check the owners association rules and the legal obligations for accommodation activity. Also calculate the off season periods.
- Quality of life also attracts remote workers, which supports demand for well furnished apartments.
- Residential neighbourhoods with good access to transport and services suit letting to families.
- Nearby mountain areas have a different, more seasonal profile, with higher risks and management costs.
See the offers on the Brasov property page.
Constanta
Demand profile
Constanta is a port city with an economy tied to port activity, trade and tourism. The nearby coast brings strong short term rental demand in summer, while the city itself has long term demand from employees and students.
What to watch
- Seasonality is the main factor. An apartment near the beach can earn a lot in summer and see low demand the rest of the year. Calculate income over a whole year.
- Construction quality in coastal areas needs careful checking: humidity, salt and wind can speed up wear.
- Infrastructure in new areas, including sewerage, roads and parking, may still be developing.
- Long term letting in the city can be a steadier alternative to seasonal letting.
See the listings on the Constanta property page.
The comparison in short
Without relying on figures that change quickly, we can summarise the profiles like this:
- Cluj Napoca: steady long term rental demand, high purchase prices, strong competition.
- Brasov: a balance between long term demand and tourism, potential for short term letting, with rules to check.
- Constanta: high seasonal potential, uneven income across the year, special attention to construction quality.
Common risks
- Overestimating rent. Use rents actually achieved, not prices asked in listings.
- Ignoring empty periods. Even in cities with good demand there are gaps between tenants.
- No reserve fund. Unexpected repairs always come up.
- Changing rules. Rules for short term letting or taxation can change.
- Relying on a single type of tenant. A local economic change can reduce demand.
Practical steps before buying
- Visit the city and the area on different days, including off season.
- Talk to local property managers about rents, typical contract length and tenant profile.
- Check the documents, including the land book extract.
- Read the owners association rules, especially if you want short term letting.
- Calculate cash flow in three scenarios: optimistic, realistic and cautious.
Finally, think about your exit. Ask yourself who would buy the property from you in ten years and why. A home that suits a wide range of buyers, in a well connected area, is usually easier to sell than a very specific one.
How Empire Terra helps
On Empire Terra you can compare apartments for sale in all three cities and follow price trends on the price index. If you want a personalised analysis, send an offer request with your budget and strategy.
Frequently asked questions
Which city has the highest yield?
We cannot name an overall winner. Yield depends on the specific property, the purchase price, the rent actually achieved and the costs. Compare real properties, not city averages.
Is short term letting more profitable?
It can bring higher income at certain times, but it involves higher costs, management and risks, plus legal and owners association rules. Long term letting can give steadier income.
Can I invest in a city where I do not live?
Yes, but you need a trusted manager or a management company, and their cost must be included in the yield calculation.
What information should I use to compare prices?
You can start from the Empire Terra price index and active listings, but add information from local agents and real transactions where available.
