European P2P real estate yields average 10pc

European peer-to-peer real estate investments have averaged returns of 10 per cent in the year to date, according to a new Robocash study.

The Croatia-based P2P platform said that these returns are in line with rental yields on the continent.

The study found that between 2021 and 2024, the average rates on the P2P real estate market have changed very little.

“The main reasons for this should be considered the relative slowness of the construction and development processes and the general ‘conservativeness’ of the European real estate market as such,” said Robocash analysts.

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However, Robocash added that real estate returns can vary considerably across Europe. For example, Switzerland, Germany and Austria have reported profitability of five to seven per cent at certain points over the last four years, while southern and eastern European yields have reached 20 per cent in some cases.

“Apparently, additional drivers here are the higher level of volatility in the overall economic situation and the regional tourism and business potential,” said the Robocash analysts.

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Robocash noted that yields on the rental housing market have been quite conservative over the past four years, averaging 10.65 per cent – just higher than the average P2P real estate returns.

“P2P is symbolically behind in this respect, but in the last two years this gap has levelled off,” the analysts added.

“The opportunity to generate income from minimal amounts, the absence of extra expenses (such as renovations), and no direct investment limitations – all this makes P2P real estate investments a compelling alternative to traditional rental housing.”

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