In addition to the constitution of a heritage in stone, the rental investment allows above all to obtain a regular income. The investor will be looking for the best possible return. This is calculated, of course, taking into account the purchase price and the amount of the rent. But other elements must be taken into account. To identify the best sectors, the specialist in the field Bevouac included in its calculation the share of tenants in the city, the dynamism of the market or the risk of vacancy. The result is a ranking of the cities where it is the most interesting to invest. This one comes to shake up certain received ideas.
The evolution of prices decisive for the rental investment
According to these data, it is the “medium” cities (from 25,000 to 50,000 inhabitants) that have the highest gross rental yield. Bevouac notes “in the top 10, an average gross rental yield of between 10.58% in Grigny and 17.39% in Châtellerault”. Next come small towns (between 17,000 and 25,000 inhabitants), then only towns with more than 50,000 inhabitants. “There are many municipalities (small and medium-sized) where it is possible to expect a gross rental yield of more than 10%. For example, in Beaupréau-en-Mauges (16.62%), Laon (13.65%), Denain (10.65%) and Montceau-les-Mines (10.64%) for small towns and in Châtellerault , Vierzon or even Montluçon (respectively 17.39%, 14.6% and 12.32%), if you are looking for a medium-sized town,” explains Martin Menez, founder of Bevouac.
But these figures must be analyzed in the light of the evolution of prices per square meter. However, on this point, it is the big cities that appear to be the most interesting. “Their prices are rising much faster, with for example +71.01% in a city like Créteil between 2017 and 2022”, notes Bevouac. “Investing in large cities and medium-sized cities seems like a good compromise. Indeed, we can observe a balance between the average gross rental yield and the average evolution of prices over the last five years. The investor benefits from an attractive short-term remuneration while capitalizing on the increase in value of the property in the long term”, analyzes Martin Menez.
According to Bevouac’s ranking, the most interesting large towns are Sevran, Le Blanc-Mesnil, Dijon, Poitiers and Villeneuve-d’Ascq. Among medium-sized towns, the company distinguishes Clichy-sous-Bois, Stains, Villiers-le-Bel, Castres and Gonesse. Finally, among the most profitable small towns, we find Romorantin-Lanthenay, Givors, Saint-Ouen-l’Aumône, Saint-Cyr-l’École and Joinville-le-Pont.
