Real Estate Investments vs. Fidelis Bonds: Which Is the More Profitable Choice?

Potentially Higher Returns Real estate investments can generate higher returns than Fidelis bonds, which offer a fixed yield of 6.5% per year in euros. Real estate provides rental income, with an average gross yield of 6.55% in Bucharest in 2025, and property value appreciation estimated at 5-7% annually. Thus, the total return can exceed 9% in real terms, compared to approximately 4.41% for Fidelis bonds, adjusted for 2% inflation.

Inflation Protection Real estate is an effective hedge against inflation because prices and rents increase alongside living costs. In contrast, fixed-yield bonds can lose real value if inflation surpasses the yield, making them less attractive over the long term.

Control and Tangible Asset Owning a property provides a sense of security as a physical asset you can use or improve. Investors have control over location, tenants, and renovations, unlike Fidelis bonds, which are less flexible.

Leverage Advantage Through mortgage loans, investors can acquire properties with a small down payment, amplifying returns. For example, with a 20% down payment, returns apply to the full property value, although risks increase if prices decline.

Portfolio Diversification Real estate adds diversity to a portfolio due to its low correlation with financial markets, thereby reducing overall risk. This aspect is crucial for a long-term investment strategy.

Conclusion and Market Context Recent data indicate a growing real estate market in Bucharest, with foreign investors making up 30% of buyers in 2025, according to Investropa: 12 statistics for the Bucharest real estate market in 2025. Projections for 2025-2030 suggest continued growth supported by urbanization and economic stability, according to CBRE: Romania Real Estate Market Outlook 2025. However, risks such as lower liquidity and management costs must be considered. For investors willing to accept these risks, real estate can offer superior returns and benefits compared to Fidelis bonds.