Protecting your capital by investing in real estate, taking advantage of inflation-linked rents is not a bad choice in an inflationary environment. Provided you choose the right position. This is the subject of the study just carried out masteo sifting through the 500 major French cities. Selection criteria ? ” A price per square meter higher than 2,000 euros per square meter as a minimum guarantee of soil quality, an average yield of more than 6%, a maximum rental voltage index, an average income greater than 23,000 euros, a population of over 40,000 inhabitants, a positive transactional tension (with more buyers than sellers) as well as some qualitative criteria “, Replies Thierry Vignal, its president. Here is the list of the 10 best cities to invest in with a 6% gross return discount in addition to the first 3 cities that can earn 7% with a price of around 1600 euros per square meter.
The 10 best cities to invest in
Investing in Thionville: 6.80% gross return at 2,207 euros per square meter
Thionville is the most profitable city in the real estate investment ranking. The price per square meter shows an increase of 9.3% in 5 years to 2,207 euros per square meter. “Thionville has the best ratio of average income to land price. Located on the border with Luxembourg, it benefits from an economic contagion effect through cross-border workers. ”, Underlines Thierry Vignal.
Investing in Metz: 6.76% gross return at € 2,129 per square meter
Metz at the gates of Luxembourg, which benefits from its influence. Three times the size of Thionville is the largest city in this ranking with a population of over 100,000real estate in Metz benefits from the proximity of the Grand Duchy. The average price? It has increased by 16.5% in 5 years and stands at 2,129 euros per square meter. Average gross profitability? That’s 6.76%. ” Metz is also one of the top 5 French cities with the highest number of requests for roommates per ad (5.9 requests per room“, Thierry Vignal points out.
Investing in Draguignan: 6.68% of gross profitability at € 2,280 per square meter
In third position, Draguignan (2280 euros / m2) is certainly the most profitable city in the Var with a gross yield of 6.68%. ” Underrated compared to its neighbors, Draguignan still ticks all the boxes: with a high average income and maximum rental pressure, this city is showing great momentum! Prices have even increased by 20% in 5 years”, Thierry Vignal observes.
Investing in Colmar: 6.58% gross return at € 2,134 per square meter
” How can such a beautiful and touristic city remain so affordable and profitable and invite investment in heritage? It’s a mistery“Asks the co-founder of Masteos. What is certain is that with an average price of 2,134 euros per square meter (+ 14% in 5 years) thereal estate in Colmar is twice as cheap as Strasbourg even though it is less than an hour away.
Investing in Chartres: 6.26% of gross profitability at € 2,225 per square meter
An hour from Paris, Chartres has risen to 5th place in the ranking of cities to invest in. Cradle of Cosmetic Valley, the capital of light and perfume that has nothing to envy to the other cities in the ranking. Investors can benefit from a gross yield of 6.26%, tenants with a high average income (26,260 euros) and maximum rental tension. Its average price? 2,225 euros per square meter.
Investing in Melun: 6.20% gross return at € 2,864 per square meter
Located just 30 minutes from Paris in TER, Melun has a real student dynamism with in particular a seat of the faculty of Assas. The city is attractive to active young Parisians who don’t have the budget to shop in the capital. Furthermore, prices continue to catch up on the Ile de France with an increase of + 8% in 6 months and + 8.4% in 5 years. The average price is 2,864 euros per square meter (compared to 7,017 euros on average in Île-de-France).
Investing in Lorient: 6.14% gross return at € 2,385 per square meter
Lorient, the city of six ports, enjoys its maritime economic dynamism. “It is one of the few large cities in Brittany that still offers 6% yield with an increase of 13% in 6 months and 50% in 5 years (2,385 euros / m2). It is the municipality in the ranking whose prices are the highest climbed! ” observes Thierry Vignal. Lorient is also among the top 3 cities ** that have seen the highest number of professionals settle in the last year.
Investing in Arles: 6.01% gross return at € 2,656 per square meter
20% more profitable (6.01% average return) and 25% less than its two sisters Montpellier and Marseille, Arles lives mainly on tourism. With the highest transaction tension in the rankings (17% more buyers than sellers), Arles recorded a 20% price increase in 5 years to 2,656 euros per square meter.
Investing in Annemasse: 6.06% gross return at 3,289 euros per square meter
The last bastion of profitability in Haute-Savoie, Annemasse shows a price of 3,289 euros per square meter. “In full renovation, 20 minutes from Geneva (15,000 euros per square meter) by car or tram, it is the richest city in the ranking (full occupancy). Disadvantage: it is also the smallest with 35,000 inhabitants”, Thierry Vignal observes. The city shows an average gross profitability of 6.06% with prices increasing by almost 17% in 5 years.
Investing in Quimper: 5.91% gross profitability at 2,070 euros per square meter
As the coast has attracted many families, Quimper has not stolen its place in this top 10. “Prices exploded after the lockdown (+ 12% in 6 months and 34.7% in 5 years) with the arrival of the Parisians. It is one of the cheapest big cities in Brittany (2,070 euros per square meter), without this being really justified. Quimper is 2 times cheaper and 50% more profitable than Rennes!”, Comments the co-founder of masteo which estimates the city’s average gross yield at just under 6%.
The top 3 cities to invest in at less than 2,000 euros per square meter
Less expensive cities generally are for a (bad) reason, hence our minimum threshold of € 2,000 / m2 to protect us from some real estate risk. For more experienced investors, there are still 3 nuggets that deviate from this rule: Niort, Épernay and Angoulême! With a profitability of more than 7%, these locations have an average price of around 1600 euros per square meter for the maximum rental voltage.
Investing in Angoulême: 7.79% of gross profitability at 1,602 euros per square meter
Angoulême, cultural center and capital of comics and animated films, 40 minutes by train from Bordeaux and 1 hour and a half by car, has seen prices increase by 31.5% in 5 years!
Investing in Niort: 7.57% gross profitability at 1,617 euros per square meter
Niort, 4th French financial center, capital of insurance, just 50 minutes from La Rochelle, the city where Parisians bought massively after the lockdown, is an interesting alternative with prices up 13.5% in 5 years and a very high median income and rental tension.
Invest in Epernay: 7.15% at 1,694 euros per square meter
In the Grand Est, Épernay, the champagne capital, is only 1 hour 30 TER from Paris for an average price per meter of 1,694 euros, and a high-income population because it is mainly employed by the big champagne houses. …
