Beanstock has analyzed thousands of data points and calculated gross and net returns in the largest cities in France for rental investment.
While some cities stand out significantly in the ranking of gross returns – such as Perpignan, Le Havre, Nîmes, or Avignon – they are heavily penalized when all the real costs of the operation are included!
Conversely, some major metropolises – especially Paris, Marseille, and Lille – hold up very well when transitioning from gross to net profitability, allowing them to rank high in the net returns.
In summary, gross profitability, while attractive, is often inaccurate and far from the actual financial yield of the investment, which emphasizes the importance of mastering all the key parameters of a rental investment before diving in.
The 5 cities to prioritize for a successful rental investment
Paris
Who would have believed it? Paris in the top 5 most profitable cities in France! Indeed, while its gross profitability is lower than elsewhere, the capital stands out for having very low levels of charges and property tax per square meter. The gap between gross and net profitability is the smallest in France. When you add to that an extremely high rental tension, strong liquidity upon resale, rising rents, and very low levels of defaults, Paris fully deserves its place in this ranking despite its high prices.
Marseille
The Phocaean city is a true gem. After two decades of deep urban and tourist renewal, this city is finally in the spotlight it deserves: its prices are skyrocketing, catching up with its competitors Lyon, Bordeaux, and Nice. With an average price of 3200€/m2 and rapidly increasing rents, the city represents an opportunity to combine strong potential for capital gains, attractive yields, and ease of management.
Lille
The little Paris? Lille has all the advantages of a big city: a charming city, a well-maintained real estate park, considerable rental tension, a regular increase in property prices, a premier local and international transport network. And this, with budgets more accessible than in the capital and for even higher levels of profitability. Our favorite!
Perpignan
Heading South. And even the extreme South: the southernmost large city in France! Just 15 minutes from the sea and 45 minutes from Spain, Perpignan is a city undergoing a renaissance. It is rolling out revealing projects that showcase its dynamism (launch of the TGV construction from Paris, opening of a campus for school 42 by Xavier Niel, pedestrianization of the city center) and presents itself as a city that has overcome its reputation for insecurity thanks to an ambitious policy from the city council. Small budgets and high profitability are plentiful!
Rouen
Investing 1 hour from Paris, 1 hour from the sea, in a city with incredible charm, full of students, in a city where prices are rising sharply: it’s possible. Rouen is part of this exclusive circle of cities that allows for a very high occupancy rate, strong accessibility from Paris, and a top-quality lifestyle.
Methodology
How are gross and net yields calculated?
Gross yield = Annual rent / (Purchase price including agency fees + Notary fees)
Net yield = (Annual rent - Annual co-ownership charges - Annual property tax - Vacancy period) / (Purchase price including agency fees + Notary fees + Renovation costs)
All data is derived from rental investment properties analyzed by Beanstock and offered by our partner agents through our BeanstockPro application, as well as data collected from our partner agencies
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