The property investment is a safe bet. Despite a high inflation rate for real estate loans, this flagship remains one of the best for invest your money. 2024 offers great opportunities for those who wish to access the property. Do you want to invest in rentals in mainland France? Discover the comparison of your Montpellier Concierge and choose the best city for your rental purchase. 

The best cities for vacation rentals

Also called Airbnb rental, this type of investment is mainly aimed at tourists. The attractiveness of the city and the activities offered in the surrounding area are selection criteria to check before purchasing a rental property. YourHostHelper deciphers for you the most interesting cities with more than 200 inhabitants for buying rental accommodation. 

1.Nice

Nice is a popular destination on the French Riviera, attracting millions of tourists each year. Fifth city in France by population, this southern gem attracts both investors and vacationers. It is renowned for its Mediterranean climate, its pebble beaches, its Promenade des Anglais and its picturesque old quarter.

There is an average profitability for a seasonal rental in Nice around 6 to 8%. Rental rates vary between 80 and 150 euros per night for well-located accommodation. The best periods for rental are in summer and around events such as the Nice Carnival and the Jazz Festival. 

The queen of flowers offers an exceptional living environment which attracts more than 5 million tourists per year. Enough to fill a few Airbnb accommodations.

2. Paris

Despite a price per m2 well above the French average, Paris remains a safe bet for seasonal rental investment.

As the capital of France, the City of Light attracts millions of visitors each year. Who doesn't dream of walking to the Eiffel Tower, visiting the Louvre or Notre-Dame?  

The metropolis is also a delight for investors. The average profitability for a seasonal rental in Paris is between 5 and 7%. Rental rates can range from 100 to 300 euros per night for a single room in a popular area. 

Although the accession price Parisian housing requires a significant loan, the game is often worth the effort. Allow for an increase in property prices of around 5% per year on average in recent years.

Constant demand throughout the year makes the Parisian market one of the most tense. 

3. Bordeaux

Listed as a UNESCO World Heritage Site, the city of Bordeaux is attracting more and more visitors. 

The Pearl of Aquitaine is renowned for its wines and its elegant 6th century architecture. It is an important cultural center which is experiencing a tourism boom with around XNUMX million tourists per year. The city offers an excellent quality of life with its mild climate, rivers, green spaces and cultural activities.

The profitability of an Airbnb in Bordeaux is on average 5 to 7%. THE rental rates vary between 70 and 120 euros per night.

In which metropolis to invest for long-term rental

The attractiveness of large cities offers security for all rental investors. If the seasonal aspect bothers you, long-term rental remains a very good real estate investment. 

1. Lyons

Lyon, capital of the Auvergne-Rhône-Alpes region, is a dynamic and attractive metropolis.

The rental yield in Lyon is among the highest in France, with an average profitability of 4 to 6%. Monthly rents for an apartment vary between 600 and 900 euros.

Student city, the capital of Gaulle attracts around 150 students and many young professionals. It charms with its heritage, its gastronomy and its interesting geographical position. 

Market valuation must also be taken into account in this type of investment. Please note that the Lyon real estate market is booming, with real estate prices increasing by around 5% per year on average in recent years.

2. Toulouse

Toulouse, known for its aeronautical industry, is a growing city.

Toulouse, the “Pink City”, is the fourth largest city in France by population. It is the heart of the European aeronautical industry, home to the headquarters of Airbus and many companies in the sector. 

La rental request is strong, supported by around 110 students and many employees in the aeronautics sector. The average profitability of housing in Toulouse is 000 to 4,5% with rents varying between 6 and 550 euros.

Toulouse follows the evolution of the largest cities in France with real estate prices increasing by around 4% per year on average.

3. Nantes

Discover the west of France with Nantes. Known for its maritime history, its festivals and its innovations, the city of the Dukes attracts more and more investors and residents.

And for good reason. The average profitability for a rental investment in Nantes is between 4 and 5,5%. Monthly rents for an apartment vary between 550 and 750 euros depending on the location. Her attractiveness economic, academic and cultural attracts around 50 students and many young professionals.

Real estate investment in Nantes allows you to take advantage of the constant increase in the market. Allow around 5% per year on average, enough to make an interesting capital gain. 

Montpellier: A promising city for real estate investment

Nestled in the south of France, Montpellier is a booming city. Known for its Mediterranean climate, its nearby beaches and its student atmosphere, it attracts many new residents every year. 

Rental demand in Montpellier is supported by a large student population, with more than 70 students enrolled in universities. In addition, the city attracts many professionals thanks to its research centers and innovative companies such as Dell, Sanofi, Ubisoft and IBM.

Montpellier offers an average profitability of 5 to 6%. THE purchase price average per square meter is still relatively affordable, around 3 euros. 

The Montpellier real estate market has strong growth potential. The city is experiencing rapid population growth, and many urban development projects are underway. Like other metropolises, real estate prices increase each year by around 4%.

Summary of the best cities for real estate investment 

The profitability of your real estate investment will vary depending on the geographic area and the type of rental. Seasonal rentals offer much higher profitability over shorter periods. Tourist cities like Nice, Paris and Bordeaux combine high rental rates with a high occupancy rate in high season. 

The long term rentals offer long-term income stability. Look for competitive profitability rates in cities like Lyon, Toulouse or Montpellier. With attractive inflation in property prices, you can hope to make very attractive capital gains on the resale of your home. 

To secure their real estate investment, many buyers rely on the attractiveness of large cities. Nice, Paris and Bordeaux benefit from a constant influx of tourists, ideal for Airbnb rentals. If you want to rent long-term, choose cities that are attractive to students and have high job potential. Lyon, Toulouse and Montpellier offer a good balance between rental profitability and attractiveness. To choose where to do your property investment, we advise you to define your rental project as best as possible. It is essential to carefully analyze the local market and choose a city based on your investor profile and your profitability objectives. YourHostHelper supports you in all your real estate projects. Discover the services of your management agency in Montpellier to buy your next homes and access a more than attractive rental yield.