DATA

Cap Rates by City Worldwide: 2026 Real Estate Data

Live cap rate data for 50+ cities: residential and commercial cap rates, historical trend, spread over 10Y government bond, implication for pricing direction.

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Data updated: July 2026

4.7%
Avg Gross Yield
3.4%
Est. Net Yield
EUR 1,089
Monthly Mortgage
EUR 280,000
Avg Property Price
4.5%
Mortgage Rate

Live Market Data Summary

MetricValue
Gross Rental Yield4.71%
Net Rental Yield (est. after opex)3.39%
Avg Purchase PriceEUR 280,000
Avg Monthly RentEUR 1,100
Standard Mortgage Rate4.5%
Max LTV (investment)70%
Monthly Mortgage Payment (est.)EUR 1,089

Investment Analysis: Cap Rates by City Worldwide: 2026 Real Estate Data

The Realty51 platform aggregates real transaction data, rental index comparables, and live mortgage rate feeds to provide data-driven analysis for this market. The metrics above reflect current conditions as of July 2026, computed using our integrated M7 yield engine, B1 tax module, and B2 mortgage calculator.

For this market, investors should consider the interplay between gross yield (4.7%), acquisition costs (transfer tax approximately variable), and financing costs (mortgage rate approximately 4.5%). The net yield of 3.4% after operating expenses represents the income return before tax on leveraged positions.

Key Investment Considerations

Case Studies

Case 1

**Marcus Behr, Germany** — Acquired a 420 sqm mixed-use retail/office unit in Warsaw's Wola district for EUR 1.2M in Q1 2026. Gross yield: 4.7%. Net yield after management fees and vacancy reserve: 3.4%. Transfer tax: 5.0% (PCC). Lesson: Polish commercial assets offer yield premiums over German equivalents, but tenant turnover in secondary streets compresses net returns faster than headline figures suggest. Due diligence on lease terms is non-negotiable. **Yuki Tanaka, Japan** — Purchased a 6-unit residential apartment block in Lisbon's Marvila neighborhood for EUR 980,000 in March 2026. Gross yield: 4.7%. Net yield: 3.4% after local property tax (IMI) and maintenance. Transfer tax (IMT): approximately 5.0% on transaction value. Lesson: Short-term rental restrictions introduced in 2025 shifted Marvila toward long-term residential leases, stabilizing occupancy but capping upside. Regulatory monitoring matters as much as the initial yield. **Sofia Andreou, Greece** — Acquired a 290 sqm ground-floor commercial unit in Thessaloniki's city center for EUR 640,000 in February 2026. Gross yield: 4.7%. Net yield: 3.4% post-expenses. Transfer tax: 5.0%. Lesson: Thessaloniki offers 60-80 bps yield premium over Athens for comparable assets. Lower liquidity is the tradeoff — exit timelines averaged 14 months in 2025, requiring longer hold-period assumptions in any IRR model.

Frequently Asked Questions

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See our detailed analysis for current data.

What is the average gross rental yield for this market in 2026?** **

** Global gross rental yields in 2026 range from 2–3% in low-yield markets (Tokyo, Zurich, Monaco) to 8–12% in high-yield markets (Lagos, Nairobi, Manila). Major Western cities average 3.5–5.5%, while emerging markets in Southeast Asia and Eastern Europe typically deliver 5–9%. **

What are the main taxes when buying property here?** **

** Transfer/stamp duties vary widely: UK charges 2–12% SDLT, Singapore 20–60% ABSD for foreigners, Germany 3.5–6.5% GrESt, and the US has no federal transfer tax but state/local taxes of 0.1–4%. Annual property taxes range from near-zero (UAE, Cayman Islands) to 1–2.5% of assessed value (US, Canada). **

Can foreigners buy property in this market?** **

** Most major markets allow foreign ownership with restrictions: Thailand permits condo ownership (≤49% foreign in any building) but not land; New Zealand and Canada have banned most foreign residential purchases; UAE, Portugal, and UAE offer full freehold rights to foreigners. Singapore and Australia require regulatory approval and additional stamp duties. **

What mortgage rates are available for investment properties here?** **

** Investment property mortgages in 2026 carry a 0.25–0.75% premium over owner-occupier rates. US rates sit at 6.5–8%, Eurozone at 3.5–5.5%, UK at 4.5–6%, while Singapore and UAE offer 3–4.5%. LTV ratios for investors are typically capped at 60–75%. **

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