Which are the most profitable cities in France for rent?
Real estate is an investment sector that is of increasing interest to the French because of its profitability. To succeed in investing in this area, it is nevertheless important to make this investment in the cities in which the rental is very advantageous. Which cities in France are the most profitable in terms of rent? The Hermitage Riviera agency presents the top French municipalities with high rental profitability.
Nice is a city for a profitable rental investment
Capital of the Côte d'Azur, Nice is one of the cities where renting is the most profitable. Situated between the sea and the mountains, it is a very sunny region where holidaymakers like to rent beautiful luxury accommodation. The rich cultural heritage of the city also gives it an important tourist potential. The demand for housing (apartment and house) is then relatively high. It is therefore a real niche for rental real estate.
In Nice, however, rental supply is too low compared to demand. There is therefore not enough real estate available to accommodate holidaymakers and offer housing to the people of Nice. Renting is then very expensive in Nice. Investing in rental property will therefore ensure a certain profitability. In addition to finding tenants easily and quickly, the rent will be substantial and beneficial for the owner. For a good rental yield, it would be really interesting to think of Nice to invest. In addition, the very strong rental price generally makes it possible to have full-time tenants.
To benefit from the rental profitability of Nice, it is however essential to find a reliable and credible real estate agency. Like the Hermitage Riviera agency based on the Côte d'Azur, the company must have a good grasp of the local market. The experience and the professionalism of the agency are also decisive in making a safe and profitable rental investment.
Limoges is a city with very profitable rents, intended for wealthy investors
Limoges is one of the first places among the most profitable French cities. The average return on investment in rentals is estimated at 5.1% deduction of rental and taxes. This is very good news since cities with such returns are quite rare.
The place of “city with the most profitable rents”, attributed to Limoges, also depends on the price of real estate. The price per square meter in the capital of porcelain is also a bit high. It is necessary to count 1684 € per square meter in this locality. For this, rental property investment is reserved in this city for investors who have substantial resources.
The price of real estate is added to this, which increases every year by more than 7%, as well as the price of rentals. The other element, which converges in the direction of the high profitability of Limoges, concerns the rental price that is in full growth.
Representing the ratio between housing supply and rental demand, it can sometimes go up to 191%. The vacancy rate is around 8%, which is a great asset for getting started in real estate rental. For optimal profitability of the rental investment in Limoges, the ideal is to target the technology park, the station, and the hypercentre. These sectors are highly profitable due, in particular, to the high concentration of human activities.
Saint-Étienne with net profitability of 4.9%
Saint-Étienne is also a niche in terms of rental profitability. The city allows investors to benefit from up to 4% net income on their investments. This is a very attractive rate of return, based on the French average. This also explains the rush of owners to the region. Most property owners come from Lyon with the objective of increasing their rental yield.
Le loyer hors charges vaut moins de 9 € et connaît également une très belle évolution chaque année. Il n'y a rien de mieux pour garantir une rentabilité des investissements assez rapide. Quant à la tenson locative, sa croissance est progressive et oscille actuellement autour des 70 %. Pour rentabiliser un investissement locatif dans cette commune, préférez le cours Fauriel, les zones de Crêt de Roc ou le centre-ville.
The people of Lyon choose this city because Lyon does not allow them to have such a profitability. The price per square meter is therefore very high in Lyon and increases every year. In Saint-Étienne, the price per square meter is less than €1,500 with significant rental demand. The other advantage for owners is that this price changes by 10% each year. In about ten years, the square meter acquired at less than €1,500 rose to €3,000. This is double the initial value and is a lucrative investment.
The rent excluding charges is less than €9 and is also experiencing very good growth each year. There is nothing better to guarantee a fairly rapid return on investment. As for the rental tension, its growth is gradual and currently oscillates around 70%. To make a rental investment in this town profitable, choose the Cours Fauriel, the areas of Crêt de Roc or the city center.
Rental profitability in Perpignan
Rental investment in Perpignan also shows a good rate of return. It is a target for many investors who want to achieve a good turnover. The profitability of rental investment is around 5% in this municipality. This is one of the reasons why it is considered one of the most profitable cities in France in terms of rent.
Like Limoges, Perpignan is a city intended for the elite of real estate investors. An increase of about 4% is observed each year on the price per square meter. The latter currently costs 1664 €. As for the rental price, it remained unstable over the last twelve months of the year. However, this instability does not really impact the rental yield. The latter is always positive for lessors.
As for rental tension, the Catalan city has experienced growth of around 110%. The sectors offering an interesting rental yield in the latter are the districts of Mulin a Van, Clos Banet, and the city center.
Le Mans, Montpellier, Strasbourg, Toulouse, and Angers are cities with certain rental profitability
A modest town in the Sarthe, Le Mans is a good location for rental investment. It thus presents a gross return of at least 7%. A true crossroads city, Le Mans is close to Paris, Nantes, Angers, and Rouen. A tourist and university city, it stands out positively for its rich cultural heritage.
A dynamic city with strong tourist potential, Strasbourg is a haven of life conducive to rental investment. The square meter is displayed at more than 4,000 € while the average rent represents 12.5 €/m². It should be noted that rental demand mainly concerns 2 or 3-room apartments. The gross return potential is around 5%.
An important university center, Montpellier is the second world capital of start-ups. With more than a dozen attraction parks, the metropolis is home to nearly 2,000 SMEs and large international firms. It is therefore a set of assets that make it a favorable setting for rental property. The average monthly rent is €13.90/m².
A young city in full expansion, Toulouse has more than 100,000 students. Every year, it welcomes thousands of new inhabitants. It is therefore a real hub for profitable rental property investment. Although it benefits from a less lucrative yield (4%), Angers offers an attractive vacancy rate of 6.4%.
Investing in real estate in Mulhouse
Mulhouse is one of the French cities with more than 100,000 inhabitants that offer high rental yields. Homeowners enjoy a net return of 4%. According to the data collected, Mulhouse allows investors to benefit from a net return of 4%. With this yield, the locality occupies a very good place in the ranking of the most profitable towns in France in terms of rent. This position is also due to the rental price, which is growing rapidly, around 182%.
The square meter currently costs 1663 € in the city of Bollwerk. Growth of about 13% on average is observed each year. By buying earlier, lessors can be sure of a long-term return. As for the sectors to target, it is recommended to choose the Foundry, the Bas Rebberg, the Rebberg, the hypercentre, etc. The real estate market indicators are all favorable for a rental investment in the town.
Like Mulhouse, other towns such as Caen and Besançon have similar assets for profitable rental investment.
Good real estate profitability in Amiens
Located in the Venice of the North, Amiens offers an attractive investment. The 50 m², for example, bring in a net income of around 4.8%. This rate concerns only the ratio of the rent received to the purchase price of the accommodation. This is therefore good news for French investors who want to achieve good figures in rental property.
Like many other French localities, conducive to rental investment, the price per square meter also increases in value each year. On the other hand, the amount of the rent is experiencing an annual decrease of 4.7%. The average price is currently €13. As for the rental price, it is up by around 150%. In Amiens, owners can easily find a tenant for their property. The sectors to be favored for investing are in particular the Saint-Maurice and Saint-Leu districts or the city center.
At all stages of the rental investment process, the Hermitage Riviera agency supports real estate investors. From the purchase of housing to the search for tenants, the company offers proven expertise and numerous advice.