The location stands as one of the most determining factors for the success of a rental investment. So what are currently the best sectors for investing in France? Which region/city should you prioritize? Real estate specialists Michaël Zingraf Real Estate address all your inquiries.
Investing in France: Cities Favorable for Rental Investment
To secure your investment and achieve good rental yields, it is essential to choose a promising market; regarding rental investment, several criteria must be considered:
- Strong rental demand,
- Economic dynamism,
- Developed student life,
- Attractive real estate prices,
- Pleasant living environment,
- Significant percentage of tenants,
- Good level of rental property profitability.
To assist you in your search, our experts present the cities that combine several of these advantages in 2024.
Marseille
For investing in France, the real estate market of Marseille has seen a remarkable upturn in recent years. Dynamic, it attracts numerous investors thanks to rising but still very attractive sale prices and strong rental demand. The city, which has managed to enhance its image, also boasts a superb natural setting by the sea and has undergone significant transformations; advantages that attract new arrivals every year (including a significant portion of tenants).
To ensure your rental investment in Marseille, it remains essential to invest in an attractive neighborhood. The most profitable sectors currently are the 1st and 2nd arrondissements (especially near the Vieux-Port, highly sought after); it is in these sectors that rental properties can generally ensure very good profitability for their owners (an average gross rental yield of 5.13%).
Paris
Despite rent control measures in force and very high real estate prices, Paris continues to offer attractive opportunities for investors. With a cultural heritage and unmatched reputation in France, the capital remains a safe bet.
However, not all Parisian neighborhoods are suitable for rental investment. In 2024, it is the 18th, 19th, and 20th arrondissements of Paris that are the most profitable sectors for a rental project: highly demanded, they have the advantage of being dynamic and well-served, and count a significant number of tenants. Coupled with prices much lower than in other districts, these advantages generally lead to good rental returns.
Lyon
Highly dynamic in terms of employment and particularly attractive for students, Lyon is one of the safest cities to invest in France in real estate. With an average gross rental yield of 3.79%, the Capital of the Gauls has many advantages to secure your investment and achieve significant capital gains; provided, of course, you choose the right neighborhood. For a rental project, the most promising sectors are located near the Part-Dieu district and the city's university establishments.
Avignon
Looking to invest in the south of France? After Aix-en-Provence and Marseille, Avignon is a promising city for rental investment. Situated between Lyon and Marseille, the City of Popes has plenty of assets: a young and dynamic population (including students), a renowned university center, tourist activity, growing rental demand, highly attractive real estate prices... The city also has the advantage of being located in the heart of Provence. These characteristics make it an increasingly attractive city for those looking to invest in France in the rental sector.
The Michaël Zingraf Real Estate agencies can assist you at every stage of your rental investment in Paris, Marseille, Lyon, Aix-en-Provence, or Avignon. Also, discover exclusively exceptional properties for sale in the most beautiful regions of France.
Frequently Asked Questions
What are the criteria for choosing a city for rental investment?
The selection of a city for rental investment is based on several essential criteria: strong rental demand, ensured by a growing population or a constant influx of new arrivals, sustained economic dynamism supported by thriving businesses and industries, significant student life ensuring continuous housing demand, attractive real estate prices allowing advantageous purchases, high quality of life favoring resident retention, and attractive rental profitability ensuring a good return on investment. These combined elements create a conducive environment for investors.
Is it still worthwhile to invest in Paris despite the high prices?
Investing in Paris remains a viable option despite a costly and regulated real estate market. The French capital offers exceptional stability in terms of property value and incessant rental demand due to its status as an economic, cultural, and tourist center. Investors can find good opportunities in the outer arrondissements where prices are more affordable and where rental demand remains strong, particularly in developing or renovating sectors.
Which neighborhoods in Marseille offer the best profitability?
In Marseille, neighborhoods offering the best profitability are generally those undergoing revitalization or already well-established but still in demand. The 1st and 2nd arrondissements, close to the Old Port, are particularly sought after for their centrality, active nightlife, and proximity to major points of interest. These sectors offer very good profitability due to an optimal balance between purchase prices and rental potential.
Why is investing in Lyon considered safe?
Lyon is often considered a safe bet for real estate investment due to its robust economy, dynamic university scene, and steady demographic growth. The city attracts skilled workforce, students, and young professionals, maintaining a high demand for rental housing. Lyon also benefits from public initiatives favoring the development and improvement of infrastructure, making its residential neighborhoods even more attractive to investors.
What are the advantages of investing in Avignon?
Avignon represents an attractive investment market due to its young and dynamic population, university prestige, and tourist appeal, notably thanks to the Avignon Festival. These factors contribute to strong rental demand, particularly during the summer season. Additionally, real estate prices are relatively low compared to other similarly sized cities, offering opportunities for interesting returns for investors seeking to maximize their capital.