Investment Opportunities in Real Estate Rentals: Unexpectedly Profitable Cities Within a 2-Hour Commute of Paris
In light of the increasing number of Parisian tenants opting for metropolitan areas within two hours of Paris via train for a more affordable housing market, real estate investors consider investing in suburban regions for securing additional retirement income through rental properties.
Paris, with an average price per square meter of 9,500 euros, presents a challenging investment landscape, especially given the high complexity and cost associated with securing a rental property in the capital. This trend has been further accentuated by the widespread adoption of remote work following the health crisis, leading to an increase in the number of remote workers, with 39% working two days a week and 23% working three days remotely.
Pierre-Emmanuel Jus, deputy managing director of real estate investment platform Maslow.immo, suggests targeting cities with more than 30,000 inhabitants, located in tense zones A, A bis, and B1, where demand for housing far outweighs the supply. These criteria can be met by Lille, Rennes, Nantes, Strasbourg, and Lyon. While these cities fit the bill, their purchase prices can deter some investors, ranging from 3,200 to 4,407 euros per square meter. Some, such as Lille and Lyon, also have rent control measures.
Other cities, like Le Mans, Douai, Beauvais, Evreux, Orleans, Reims, Laval, Lens, and Arras, offer the advantage of being cheaper and free of rent control measures, while remaining within reach of Paris via TGV trains. These cities provide higher rental yields compared to the previously mentioned cities, with an average of 6% to 7%, offering a compelling investment proposition for real estate investors.
When choosing a city for real estate investment in France, factors such as local economic conditions, infrastructure developments, and regulatory changes must be carefully considered. Some cities, like Bordeaux and Montpellier, with their resurgent popularity, growing expat communities, and improving infrastructure, might prove to be attractive investment options.
Meanwhile, the French Riviera, with luxury properties and strong rental potential in the luxury and short-term rental sectors, could be an attractive but expensive choice for high-end real estate investors. Cities like Aix-en-Provence and Strasbourg also offer a balance between affordability and potential rental yields.
In conclusion, considering real estate investment outside major cities like Lille, Lyon, and Rennes necessitates careful consideration of cities with high rental demand, affordable pricing, and good yield. Investors should conduct thorough research on local markets, taking into account factors such as economic conditions, infrastructure, and regulatory changes before making a commitment.
Personal-finance conscious investors may find it advantageous to explore real estate investment opportunities in cities like Le Mans, Douai, Beauvais, Evreux, Orleans, Reims, Laval, Lens, and Arras, where purchase prices are more affordable and rental yields are substantially higher compared to major cities. As these cities are within reach of Paris via TGV trains, they can provide a lucrative source of income through rental properties for individuals looking to strengthen their finance in the business sector.
