Glossary
Bruttomietrendite
Bruttomietrendite: Bruttomietrendite (German for gross rental yield) expresses the annual cold rent (Kaltmiete) as a percentage of a property's purchase price. It works as a first indicator of an investment's profitability, but it ignores ongoing costs such as maintenance, management, and closing costs.
What is Bruttomietrendite (gross rental yield)?
Bruttomietrendite, German for gross rental yield, is a metric for property investors that shows how annual rental income compares to a property's purchase price. It answers one question: what percentage of your invested capital comes back each year as cold rent?
The formula is: Bruttomietrendite (%) = annual Kaltmiete ÷ purchase price × 100. Only the cold rent (Kaltmiete, the rent without service charges) is used, and the reference figure is the bare purchase price without closing costs. That is exactly where the metric is both strong and weak: it is simple to calculate and lets you compare different properties quickly, but it leaves out every other cost.
Across the 50 largest German cities, the Bruttomietrendite averaged around 4.1% in the second half of 2025. In the metros München, Hamburg, and Frankfurt the figures sit between 3.0 and 3.5%, while structurally weaker regions reach yields above 5%. The reciprocal of the gross yield is the Kaufpreisfaktor (purchase price multiplier, also called the Vervielfältiger): at a yield of 4%, it equals a factor of 25, meaning the purchase price equals 25 annual cold rents.
Calculating the Bruttomietrendite: an example
Starting data: a condominium in a mid-sized German town, purchase price €280,000, monthly cold rent €1,050.
| Item | Amount |
|---|---|
| Monthly cold rent (Kaltmiete) | €1,050 |
| Annual cold rent (× 12) | €12,600 |
| Purchase price | €280,000 |
| Bruttomietrendite | 4.5% |
Calculation: €12,600 ÷ €280,000 × 100 = 4.5%
For comparison: the same flat in München, with a purchase price of €480,000 and a cold rent of €1,250, would reach a Bruttomietrendite of just 3.1% (€15,000 ÷ €480,000 × 100). This shows that high purchase prices push the yield down sharply, even when the rents are well above average.
Key points to know
- Not a realistic measure of return: the Bruttomietrendite accounts for neither closing costs (typically 8 to 15% of the purchase price) nor ongoing costs such as maintenance, management, or vacancy risk. For the actual return, the Nettomietrendite is more meaningful.
- Use only the cold rent: the calculation takes the Kaltmiete only (without service charges). The Warmmiete (rent including service charges) is not used, because service charges are passed on to tenants and bring no income to the landlord.
- Benchmarks for Germany (2025/2026): metros (München, Hamburg, Frankfurt): 3.0 to 3.5%. Major cities: 3.5 to 4.5%. Mid-sized towns and B-locations: 4.5 to 6.0%. Rural regions: sometimes above 6%, though with higher vacancy risk.
- A high yield does not automatically mean a good investment: very high gross yields (above 7%) often point to structurally weak locations with limited demand and little room for value growth.
- Rising rents, stagnant prices: in the first half of 2025, asking rents rose by around 5.3%, while purchase prices climbed only 1.7%. This gap has nudged gross yields slightly higher.
Legal basis
There is no statutory regulation for the Bruttomietrendite itself, since it is a business metric. The underlying rent setting is, however, governed by German tenancy law (§§ 535 ff. BGB), in particular the rules on the Mietpreisbremse (rent cap, § 556d BGB) and the Kappungsgrenze (cap on rent increases, § 558 (3) BGB). In many German cities these rules limit the maximum permissible rent and therefore directly affect the yield you can achieve. Before buying, investors should check whether the assumed rent matches local Mietspiegel (rent index) values and the statutory ceilings.
Frequently asked questions
Bruttomietrendite is German for gross rental yield. It is the annual cold rent (Kaltmiete) expressed as a percentage of the purchase price, before any costs are deducted. The formula is: annual Kaltmiete ÷ purchase price × 100. Because it leaves out closing costs and ongoing expenses, it is a quick comparison figure rather than a measure of your actual return.
As a rule of thumb, a Bruttomietrendite of 4 to 6% is considered acceptable. In the seven largest German metros (Berlin, Hamburg, München, Köln, Frankfurt, Stuttgart, Düsseldorf) the figures currently sit at 3.0 to 4.2%, while smaller towns and rural regions can realistically reach 5 to 7%. Keep in mind that the gross yield is only a first filter: for a sound investment decision you should always also calculate the Nettomietrendite (net rental yield), which factors in ongoing costs and closing costs.
The Bruttomietrendite sets the annual cold rent against the bare purchase price. The Nettomietrendite (net rental yield) also includes all non-recoverable costs (management, maintenance, vacancy risk) and the closing costs (real estate transfer tax, notary, agent). As a result, the net yield typically lands 0.8 to 1.5 percentage points below the gross yield. For a realistic view of profitability, the Nettomietrendite is the more meaningful figure.
The Bruttomietrendite ignores every cost that arises on purchase and during ownership: real estate transfer tax (3.5 to 6.5%), notary fees, agent commission, maintenance reserves, management costs, and possible vacancy. At a gross yield of 5%, the actual return after all costs can fall below 3%. The metric is fine for a quick comparison between properties, but it should never be the only basis for a decision.