Do you want to start a rental investment? Can you invest with less than 100,000 euros? Yup ! Bean, the turnkey rental investment platform, has identified the five most attractive cities to invest on a tight budget. What area and what profitability can we expect for each city?
Avignon: land of sun and surrender
Avignon enjoys growing attractiveness, increasing rental tension. With over 62% of tenants already, since the democratization of teleworking, the city now welcomes many young executives (Lyon in particular) who have chosen to move away from the big cities to benefit from a more pleasant living environment and a higher standard of life.
This town of 100,000 inhabitants indeed offers a Mediterranean climate, a rich historical and cultural heritage: City of the Popes, Pont d’Avignon, Festival d’Avignon … The attractiveness of the city is felt in the tension of resale: in five years the time it takes to sell a property in Avignon decreased by 35%. While the rise in prices, already sustained for 5 years, is accelerating (+ 12% in one year), 2022 is a favorable entry point for an investment.
With only a hundred thousand euros in budget, an investor can hope to acquire a property of 25 m² with a net yield of 4.6% per annum.
Perpignan: affordable prices and record profitability
With an average price per m² of 1500 euros, the Perpignan real estate market allows for the acquisition of promising properties on a limited budget. The city should follow a similar trajectory as Nîmes or Beziers in the region and prices will rise. Indeed, the new city policy aimed at making the city cleaner and safer is particularly popular with tourists and tenants. So Perpignan can take full advantage of its location (close to the sea and a 30-minute drive from Spain).
At the same time, the rental market is very tight, most properties are being rented out; Furnished rentals recommended by Beanstock are therefore very popular. In addition, the rental permit launched in 2021 has shocked the local real estate market: the new legal requirements force owners to renew the rental stock, which automatically increases prices and rents. Some are even forced to withdraw their properties from the market, which exacerbates the strain on the market.
This double dynamic allows an investor to achieve an exceptional net return of 5.4% (or even more for small surfaces) with the acquisition of a property of 36 m².
Le Havre: sea and attractive prices attract investors
Just two hours from Paris, Le Havre is Normandy’s first city and France’s second-largest port city. Student city (13,300 students) and dynamic with its cultural and historical heritage and its industrial territory, Le Havre attracts many profiles of tenants. Despite a 15% price increase in one year, real estate prices remain lower than in most major cities.
The knowledge of the division of the city allows to identify the best neighborhoods such as that of the Eure. In full revitalization with splendid Le Havre buildings and more recent constructions, the neighborhood, near the EM Normandie business school, enjoys strong rental tension.
With a total endowment of one hundred thousand euros, an investor can therefore expect a return of more than 4.2% for an area of 27m².
Metz: a Bordeaux bis?
Often underestimated Metz is a city destined to grow. Formerly industrial, it is completely reinventing itself and its expansionary policy makes it a great long-term investment. With its 118,000 inhabitants, Metz is attracting more and more innovative VSEs / SMEs (+1000 new businesses in 10 years) and students. This sustained momentum is driving record price increases (+ 40% in 5 years).
Still very affordable (€ 2829 m²), the city is 1 hour and 30 minutes from Paris by TGV and a 30-minute drive from Luxembourg, where prices reach almost € 10,000 m²! Thus, the city does not fail to attract investors, especially since the property tax is very advantageous there (450 € / year on average for a large T1).
With a budget of one hundred thousand euros, an investor can thus obtain a return of 5% and the acquisition of a property of up to 25m².
Rouen: a low-cost asset investment
With its 112,000 inhabitants, Rouen displays intense economic dynamism, reinforced by its proximity to Paris (1h30 by train). The city is also a powerful university center stimulated by its 46,000 students spread across several schools and universities, including Neoma, a leading business school. With 69% of tenants, the rental voltage is very high there, a property is rented on average in 17 days in the city. This is all the more true in the city center with its beautiful half-timbered houses which attract young executive couples. It is the city with the greatest heritage of the five preserved; Rouen is ideal for an investor looking for security.
With only a hundred thousand euros in budget, an investor can hope to acquire a property of 24 m² with an average net return of 4.2% per annum.
