Buy to rent, yes, it is still necessary! Here is a map of cities and neighborhoods offering the best returns.
Borloo, Malraux, Censi-Bouvard, the tax exemption schemes abound in rental investment! The law Pinel, latest, targeted modern and new purchases is also certainly no stranger to the small recovery in the rental market. “Since the beginning of the year, sales to investors increased by 65%” , estimated Cuxac Alexandra François, president of the Federation of developers (FPI), a few weeks ago.
However, the profitability that we expect from such investment varies greatly from one city to another, depending on the purchase price on the one hand, and the level of rents that can be in hope other. To see more clearly, the Journal du Net and Meilleursagents have teamed up to make a diagnosis in the 14 largest cities in France.
Le Havre, the most profitable city
To do this, they calculated the average gross rental value in the cities but also their various districts. Clearly, it is the amount of rental income expected from the well-over-year, based on the purchase price of the property, thanks to the data collected by Meilleursagents and its partner agencies in France. Result: Le Havre comes a number by displaying the best rental yield of 7.7%, followed by Marseille (6.1%) and Lille (5.75%). Nice, Bordeaux, Lyon and they appear on the bottom of the table with investment returns below 5%. In the capital, where housing demand is high, however, the rental income of the properties is the least attractive of the fourteen cities reviewed past and reaches only 3.86%.
But every neighborhood is not the same in each city! Looking more closely, the Mont Gaillard neighborhood Havre offer the highest profitability in its rental investors (12%). The attractiveness of this area is due to the low cost of property, count 985 euros per square meter. Belville and Cardinals Points are also among the most attractive in the port city to make a rental investment areas.
Saint Mauront in Marseille, gout d’Or in Paris
In Marseille, Saint Mauront, Notre Dame limit and Canet are also areas to focus with more than 8.5% return on gross investment over one year, while the area of the fact Paillade favorite figure in Montpellier (8, 28% of gross profit). In Toulouse, the Mirail neighborhood / University is most profitable for rental investment by posting a rate of 7.85%.
In the cities of the bottom of the rankings, that is to say the least profitable on average, the rental yield of the most attractive areas is closer to 5%. Lille center offers 6.97% profit compared to the purchase price of the property, where the Santy-La Plaine district of Lyon or North Nantes display 5.80 and 5.61% respectively. In Bordeaux, despite a high price per square meter at 3238 euros, the Capuchin-Victoire quarter is the most profitable of the city (5.07%). In Paris, the neighborhood of Goutte-d’Or won the votes with a gross rental return equal to 4.88%. A relative performance is explained by an average rent per square meter to 23.82 euros, while that of most of the observed cities hovers around 10 euros.
Cabinet Roche & Cie, Chartered Accountant in Lyon, France.
Experts in French Real Estate Taxation.