A rental investment in the old always presupposes finding the right balance between the profitability of the rents, the capital gain potential of the acquired asset and the risk of vacancy. This is called the risk / reward ratio, which remains the key indicator for any real estate investment.
Masteos, a start-up specializing in turnkey rental investments, has looked carefully at these parameters and recommends focusing this year on cities that offer a relatively low price per square meter with a gross yield of more than 5% and a limited leasing risk for the investor. Masteos made a rather original selection of 10 cities with half focusing mainly on the return strategy and the other half on the long-term added value perspective.
Yield selection
The 5 destinations selected by Masteos for their performance are medium-sized cities with particularly attractive prices that will satisfy investors on a tight budget:
- Thionville it qualifies as the most promising city with a gross yield of + 7.1% and an average price of just over 2,000 euros per square meter.
- Valence it is well positioned with + 7.3% and an average price per square meter close to 1,900 euros.
- On the outskirts of Reims, Champagne Chalon it turns out to be the most profitable with 9.1% gross and a very modest average price per m² of € 1,350. Epernay the deviation is also valid with its strong real estate assets at an average price per square meter not exceeding 1,700 euros and a yield of 7.2%.
- 1 hour from La Rochelle and the Atlantic coast, Niort seems to be a destination on the rise suggesting a gross yield of 7.8% for a price per m² of around € 1,500.
Selection of added value
The 5 cities considered ideal for long-term investments are a bit more expensive to buy without significantly exceeding € 3,000 per m².
- Orleans it is the most convenient with a m² of around 2,500 euros for a gross yield of 5.5%.
- Caen and the most profitable with a yield of 5.8% and a price per square meter that slightly exceeds 2,500 euros.
- Tour it has the advantage of being a student city and has a yield of 4.9% for a price per m² of € 3,000.
- anger it is also on average € 3,000 per m² for a gross yield of 4.7%.
- Marseille it is the only metropolis on this list. Prices are approaching € 3,300 per m² with obviously strong disparities depending on the district, but the gross yield is calculated at 5.3%.
