Profitability analysis of rental apartments as an investment alternative : Case: Rental apartments in Belgrade, Serbia
Aleksandrovic, Ivan (2018)
Lahden ammattikorkeakoulu
2018
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2018112217866
https://urn.fi/URN:NBN:fi:amk-2018112217866
Tiivistelmä
This thesis aims to analyse a variety of investment opportunities in real estate and profitability of real estate investment in various business concepts in the capital of Serbia, Belgrade. However, the main focus is on investing in apartments with the sole purpose of subletting to a third party, buy-to-rent apartment in Belgrade.
Belgrade, the capital of Serbia has experienced an increase in demand for rental apartments in recent years. This is partly thanks to development of tourism, and partly due to internal migration from the countryside to the capital. The increase in demand has in turn resulted in increasing prices of this type of properties. These factors motivated me to do research on rental apartments for this thesis and compare the profitability of investing in various types of rental apartments in Belgrade.
The high demand for rental apartments has been reflected in higher property prices in Belgrade compared with other cities in the region. Despite the high initial costs of buying property, the profitability of the investment is mainly driven by the long-term demand for renting. Nevertheless, not all types of rental property represent an equally good investment opportunity.
All the items listed above impose the need to review the feasibility of investing in real estate for the purpose of renting accommodation in Belgrade.
Based on the results of the analysis and calculations of investing in buy-to-rent apartments, the narrower city center of Belgrade offers better investment opportunities than the outskirts of Belgrade, while “short-term” rentals in the narrower city center offer a better profitability than “long-term” rentals in the same area.
Belgrade, the capital of Serbia has experienced an increase in demand for rental apartments in recent years. This is partly thanks to development of tourism, and partly due to internal migration from the countryside to the capital. The increase in demand has in turn resulted in increasing prices of this type of properties. These factors motivated me to do research on rental apartments for this thesis and compare the profitability of investing in various types of rental apartments in Belgrade.
The high demand for rental apartments has been reflected in higher property prices in Belgrade compared with other cities in the region. Despite the high initial costs of buying property, the profitability of the investment is mainly driven by the long-term demand for renting. Nevertheless, not all types of rental property represent an equally good investment opportunity.
All the items listed above impose the need to review the feasibility of investing in real estate for the purpose of renting accommodation in Belgrade.
Based on the results of the analysis and calculations of investing in buy-to-rent apartments, the narrower city center of Belgrade offers better investment opportunities than the outskirts of Belgrade, while “short-term” rentals in the narrower city center offer a better profitability than “long-term” rentals in the same area.