Cities to invest in
Dec 1, 2025
3 minutes
Investing in rental real estate in the 16th arrondissement of Paris means taking an interest in one of the most residential and prestigious districts of Paris. Quiet neighborhoods, Haussmannian buildings, renowned schools, and proximity to the Bois de Boulogne create a unique market, driven by an upper-middle-class population seeking comfort and stability. For an investor, the 16th offers not the highest returns in Paris, but provides rare visibility and solid asset appreciation.
Why invest in rental real estate in Paris 16?
A sought-after residential district for its quality of life
The 16th arrondissement is known for its peaceful environment, tree-lined avenues, embassies, international schools, and its immediate proximity to the Bois de Boulogne. This living environment attracts families, senior executives, expatriates, and liberal professions: solvent, established, and demanding profiles. For rental investment, this sociological stability translates into a constant demand for quality properties, particularly high-end two-bedroom apartments and large family spaces.
Daily life there is structured around premium services: selected shops, restaurants, sports facilities, green spaces. This unique quality of life explains why properties in the 16th maintain their value even in less favorable real estate cycles. For an investor, this resilience is a major asset when seeking a secure long-term investment.
High prices but a unique heritage value
The 16th displays some of the highest prices in Paris, ranging between €10,000 and €14,500 per m² depending on the areas, with even higher peaks towards Passy or Victor-Hugo. This price level reflects a simple reality: supply is scarce, and the demand for quality apartments remains strong, particularly among families and expatriates.
The arrondissement is also very contrasting. The large Haussmannian boulevards of Passy or Victor-Hugo show high prices, while the north of the 16th — near Porte de Saint-Cloud or Auteuil South — still offers more accessible levels. For rental investment, these disparities allow targeting a sector aligned with one's objective: pure heritage security or seeking slightly better profitability in less central areas.
A stable rental demand, driven by families and expatriates
The rental market of the 16th is largely driven by families, senior executives, and expatriates looking for a calm, secure, and well-served environment. International schools, private high schools, and proximity to embassies enhance this attractiveness. Two to three-bedroom apartments rent quickly, provided they are well laid out and renovated.
For small spaces, demand exists but is more selective: studios or small two-bedroom apartments rent well when they are renovated, bright, and located near a metro station. This segment mainly attracts young professionals or foreign students. For an investor, this part of the market requires careful selection of the property, as demand is more qualitative than quantitative.
An arrondissement that values quality and high-end renovation
The real estate stock of the 16th consists mainly of Haussmannian buildings and properties from the 1930s, often very well maintained. However, a portion of this stock suffers from insufficient energy performance, especially in small spaces. For rental investment, this constraint can become a lever. A targeted renovation — insulation, double glazing, modernization of kitchens and bathrooms — often suffices to reposition the property in a higher rental range.
In an arrondissement where competition is based on quality, a renovated property stands out immediately. It attracts more stable tenants, capable of paying a high rent for a modern apartment in a prestigious neighborhood. This logic reinforces the coherence of a wealth strategy based on quality rather than on the race for yield.
Highly differentiated neighborhoods
The 16th is not a homogeneous block. Chic Passy does not resemble northern Auteuil, and the Victor-Hugo sector has nothing in common with Porte Dauphine. These contrasts create opportunities to precisely adjust the investment strategy. The most prestigious areas offer almost perfect stability, while the peripheral border sectors provide slightly higher gross profitability.
For an investor, this heterogeneity is an advantage. It allows choosing between a very high-end wealth investment or a more balanced rental project in a less central but progressing sector. Understanding these micro-markets is essential for structuring a solid project that aligns with one's budget.
The best neighborhoods in the 16th for a rental investment
Passy – La Muette: Residential Elegance and Asset Stability
Passy and La Muette form the most prestigious residential heart of the 16th arrondissement. The quiet streets, Haussmannian buildings, renowned schools, and immediate proximity to the Bois de Boulogne attract a stable and demanding CSP+ population. Family apartments are particularly sought after, and renovated two-room apartments are quickly taken by young professionals or expatriates.
Even though prices often exceed €13,000/m², this area offers exceptional asset value and rare stability. For rental investment, vacancy rates are low and appreciation is solid. It is a sector suitable for a long-term strategy based on quality and security.
Victor-Hugo – Porte Dauphine: Prestige, Standard, and Strong High-End Demand
This area is distinguished by wide avenues, bourgeois buildings, and a particularly well-kept environment. Tenants here seek spacious, bright properties with high ceilings. They are mainly families, senior executives, and expatriates, willing to pay a high rent for an apartment that meets international standards.
For a rental investment, the demand is very high quality. Renovated properties that are well arranged and located on quiet streets rent quickly. Appreciation is strong, supported by the prestige and rarity of the real estate portfolio.
Auteuil: A More Accessible Residential Market
Auteuil offers a more family-friendly and accessible atmosphere than Passy, while maintaining the typical elegance of the 16th. Prices here are slightly lower — often between €10,000 and €11,000/m² — which allows for a rental investment in a premium setting with a more reasonable budget.
The neighborhood attracts families, young professionals, and athletes due to its proximity to Roland-Garros, Jean-Bouin, and the Bois de Boulogne. Renovated properties rent particularly well here, and small units on higher floors attract a young and solvent clientele. It is a sector suited for a balanced strategy: prestige + accessibility.
Jasmin – Exelmans: A Calm, Residential, and Sought-After Area
This sector combines tranquility, quality buildings, and good transport links. Young professionals seek functional and renovated housing close to the metro and shops. Rental demand is solid, supported by a solvent population and the proximity to many higher education and professional institutions.
For Beanstock, Jasmin – Exelmans represents a coherent area: small to medium-sized properties rent quickly here, with a gradual appreciation linked to the continuous improvement of the neighborhood. It is one of the most balanced sectors in the 16th.
What to remember about the 16th arrondissement
The 16th offers a unique residential environment, a stable rental demand, and a market composed of quality properties. The prestigious areas ensure strong wealth security, while the more accessible zones allow for building a balanced and sustainable rental investment. It is an ideal district for investors who prioritize quality, visibility, and long-term appreciation.
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