Estimated reading time approximately 9 minutes.
IMMO9 Group
January 31, 2024
[ mis à jour le 31 janvier 2024 ]
SUMMARY
Rennes, historic capital of Brittany, is today a dynamic and booming metropolis. Its constantly evolving real estate market attracts a growing number of investors, seduced by the numerous opportunities this city offers. In this context, one of the crucial choices for investors is to decide between purchasing a new property or renovating an existing property.
This article aims to guide investors through the advantages and challenges of these two options in Rennes, with particular emphasis on the benefits of buying new. We will explore the specificities of the city of Rennes, its most promising areas for investment, and the key aspects to consider to make a judicious and profitable real estate investment in this rapidly developing Breton city.
Why Rennes is an attractive city for real estate investors
Rennes stands out as one of the most attractive cities in France for real estate investors, thanks to a unique combination of economic, demographic and quality of life factors.
Population growth and large-scale urban projects
Rennes is experiencing sustained demographic growth, partly thanks to its status as a university hub and regional economic center. The city attracts young workers, students and families, generating a constant demand for housing. In addition, the city benefits from numerous large-scale urban projects, such as the renovation of the station district and the development of eco-districts like Cesson-Sévigné. These projects demonstrate an ambitious future vision, strengthening the attractiveness of Rennes for investors.
Quality of life and accessibility: the winning combination
Rennes offers an exceptional quality of life, with a rich cultural heritage, abundant green spaces, and a dynamic gastronomic and artistic scene. The city is also well connected, with easy access to Paris by TGV and proximity to the Breton coast. This accessibility, combined with a high quality of life, makes Rennes particularly attractive for residents and investors alike.
A tense rental market, ideal for investment
The rental market in Rennes is characterized by significant tension, due in part to the large student population and rental demand which often exceeds available supply. This situation creates a favorable environment for investors, with prospects for attractive rental yields, especially for small spaces and accommodation intended for students.
Buying new in Rennes: advantages and opportunities
©Antonio Guillem – Shutterstock
Investing in new real estate in Rennes presents several significant advantages for investors, both economically and practically. These advantages make buying new a preferred option for those looking to maximize returns and minimize risks.
Benefits of buying new in terms of guarantees and standards
Energy savings and compliance with RE2020 standards
New properties in Rennes are built according to the latest environmental standards, in particular thermal regulations RE2020. This ensures better energy efficiency, reducing heating and cooling costs for tenants or homeowners. This compliance with recent environmental standards makes new properties particularly attractive for tenants aware of ecological issues and for investors concerned about sustainability.
Tax advantages and reductions in notary fees
Purchasing new property in Rennes is often accompanied by significant tax advantages, such as tax reductions under schemes such as the Pinel law. In addition, notary fees are generally lower for new properties than for old properties, representing around 2 to 3% of the purchase price compared to 7-8% for old properties.
Pinel rent in Rennes
Promising neighborhoods for purchasing a new property
The Beaulieu district: a hub of innovation and education
The Beaulieu district: a hub of innovation and education
Beaulieu, located east of Rennes, is a dynamic district known for its university campus and research centers. Investing in a new property in this area means benefiting from strong rental demand from students and young professionals, as well as a lively and expanding environment.
The new station district: modernity and connectivity
The Rennes station district is undergoing a complete metamorphosis, becoming a new hub of urban life and business. Investing in a new property in this area offers the advantage of immediate proximity to the main transport routes and easy access to all the city’s amenities.
Cesson-Sévigné and the Via Silva eco-district: investing in the future
Via Silva, located in the commune of Cesson-Sévigné, is a promising eco-district project. Investing in this neighborhood offers the opportunity to participate in a sustainable and innovative real estate project, with strong long-term growth potential.
Renovating in Rennes: when and why it can be interesting
©Studio Romantic – Shutterstock
Although buying new has many advantages, renovating older properties in Rennes can also be a viable option for some investors, particularly those looking to take advantage of the charm and unique potential of older properties.
Charm and potential of old properties
Old houses and apartments in Rennes often have a distinctive character and historic charm that is not found in new construction. For investors attracted by these characteristics, renovation can help preserve and enhance unique architectural elements, while modernizing essential aspects of comfort and energy efficiency.
Possibilities for added value after renovation
Increase in the green value of properties
Renovation works, especially those that improve a property’s energy efficiency, can significantly increase its market value. Houses renovated with good energy performance (classified A or B in the DPE) often sell at a higher price, reflecting the growing interest of buyers and tenants for eco-responsible housing.
Impact of energy renovation on the DPE
Energy renovation of older properties, such as insulation, updating heating systems or installing double-glazed windows, can significantly improve a property’s Energy Performance Diagnosis (EPD). This makes the property more attractive on the rental or sales market and can lead to substantial savings for occupants.
Neighborhoods of Rennes suitable for renovation
The historic city center: rich heritage
Downtown Rennes, with its historic architecture and picturesque streets, offers considerable potential for renovation. Investing in renovating a property in this area can attract renters or buyers looking to live in a setting steeped in history and charm.
The Sainte-Thérèse district: an evolving family sector
The Sainte-Thérèse district, popular with families and young couples, presents interesting renovation opportunities. Investing in the renovation of older homes in this neighborhood can meet the demand of a family market seeking both character and modern comfort.
Renovation in Rennes can therefore be an attractive option for investors looking to combine the charm of the old with the comfort and efficiency of the modern. However, this requires a well-considered approach, taking into account renovation costs, local regulations and the property’s potential for added value.
Detailed comparison: buy new or renovate in Rennes?
For real estate investors in Rennes, it is crucial to carefully weigh the pros and cons of buying new versus renovating. This detailed comparison aims to provide a clear perspective on both options.
Cost analysis: initial investment and long-term costs
Buying a new property in Rennes generally involves a higher purchase price compared to an old property requiring renovation. However, the additional upfront costs are often offset by long-term savings in maintenance, energy savings and warranties. On the other hand, properties to be renovated may seem cheaper to purchase, but the renovation costs can turn out to be high, especially if surprises appear during the work.
Rental times: speed versus customization
New properties are usually ready for occupancy or rental upon acquisition, which can be a significant advantage for investors looking to quickly generate rental income. On the other hand, renovation projects require time for work, which can delay the rental of the property. However, renovation offers greater flexibility in terms of customization and adaptation to the specific needs of the local market.
Return on investment and flexibility of the rental market
Buying new is frequently associated with a stable and predictable rental yield, with additional advantages such as tax reductions (Pinel law, for example). Renovated properties, for their part, can offer opportunities for significant added value, particularly if the renovation significantly improves the energy performance and attractiveness of the property. However, this largely depends on the quality and extent of the renovations carried out.
Tips for making a successful real estate investment in Rennes
To maximize the chances of success with a real estate investment in Rennes, whether buying a new property or renovating, it is important to follow a few key tips.
Importance of localization and market research
Whether you choose to invest in a new property or to renovate, location remains a determining factor. It is essential to have a good knowledge of the Rennes real estate market, the developing neighborhoods, and the trends in rental demand. A thorough market study can help identify the best locations to invest.
Get support from professionals
Whether for the purchase of a new property or the management of a renovation project, it is advisable to surround yourself with competent professionals: real estate agents, Rennes architect, construction contractors and real estate investment advisors. Their expertise can be crucial to navigating the Rennes real estate market and making informed decisions.
Monitoring trends and developments in the Rennes market
The real estate market is dynamic and can change quickly. It is important for investors to stay informed of the latest trends, regulatory changes and emerging opportunities in Rennes. This makes it possible to adapt investment strategies according to market developments and to maximize returns on investment.
At Immo9 Rennes, we support you every step of the way to best seize these opportunities.
Ready for a new investment?
Investing in real estate in Rennes offers promising prospects, whether through the purchase of new properties or the renovation of existing properties. Each option has its advantages and disadvantages, and the choice will depend on each investor’s goals, budget and preferences. With its dynamic neighborhoods, its pleasant living environment and its ambitious development projects, Rennes is positioned as an attractive real estate market for a wide range of people.
2024-02-01 02:58:14
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