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Gross yield
Gross yield is the percentage that relates a property's annual income to its purchase price, before deducting expenses.
Detailed explanation
It is calculated by dividing the gross annual income (for example, the rent) by the purchase price and multiplying by 100. It is a quick indicator to compare real estate investment opportunities, but it does not account for taxes, service charges, insurance or renovations.
Practical example
A flat bought for €100,000 and rented for €800/month (€9,600/year) has a gross yield of 9.6%.
When it matters
Gross yield is useful to filter quickly and compare assets, but it should always be checked against the net yield.
At Arkos Investor
At Arkos Investor we show the estimated yield of each asset so you can compare opportunities at a glance.
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