Rental real estate -
Everything you need to know about rental property
What are the cities with the greatest potential for investing in rental property?
January 17, 2023
The cities with the most potential for investing in rental real estate are those with the best rates of return, those with a higher rental demand than supply, i.e., the number of units available for rent is lower than the number of housing demands. Find out more about the real estate crowdfunding platform Raizers
One of the most attractive cities to invest in rental real estate is Bordeaux, which has been able to develop and accommodate many housing units, including social housing. The demand is very high, so real estate is very profitable.
Bordeaux is the most populous and prosperous city in southwestern France. The city has a vast territory and important business areas, especially the Technopôle de Bordeaux, it is a very dynamic city.
In addition, young families represent nearly 40% of the population, as well as nearly 20% of households that have invested in rental property. It is important for investors to take this data into account, in order to orient their search towards neighborhoods that correspond to these criteria.
The agglomeration community of Angers covers an area of 250 km² and has nearly 400,000 inhabitants. The city of Angers is one of the main cities of the region with nearly 120,000 inhabitants.
The Angers agglomeration community is characterized by a low unemployment rate and a social housing rate of over 20%. These characteristics make it an ideal location forrental investments in this area.
The real estate sector is very dynamic, particularly in the area of investor housing. Generally speaking, rental housing is the mainstay of the city's economic activity, as well as its proximity to Nantes and other cities in the region.
For investors who wish to to invest their savingsFor investors wishing to invest their savings, the sectors that stand out the most for real estate investments are the East of Angers, the Val-de-Loire commercial zone, the Guillaume-le-Conquérant sector, the Parc des Expositions and the Centre Commercial Saint-Pierre.
The city center of Rennes is very dynamic and is a very popular area for young professionals. The proximity of the city center and the headquarters of Rennes' companies allows for a permanent occupation of the real estate stock.
The supply of rental housing is very large in the city of Rennes, with more than 60,000 units available in the area. Many landlords offer their properties for sale in order to convert them into rentals. The quality of the housing is increasing and it is rare to find properties that are in a state of disrepair or in need of renovation. The fact that most of the housing stock is rented out means that tenants are well treated and that landlords are attentive to the maintenance of the housing.
Nantes is a large city in the west of France, where many development projects are underway, particularly in the economic and technological fields, with the Grands Entrepôts district in particular. It is also a city with strong tourist potential, with many regional and national facilities.
The city's housing conditions are also very favorable to tenants, with a rate of social housing that represents 30% of the supply and a rate of fuel poverty that is 24.3%, 7.5 points lower than the national average.
Housing prices are very attractive in the Pink City, as they are much lower than in Paris, at only 14% of the average market value. It is also the city where tenants are the most satisfied in the Aquitaine region.
The most represented sectors of activity are aeronautics, aerospace, renewable energies, information technology and cyber security. It is also the region's second largest research and development center, behind Montpellier.
Real estate prices are relatively affordable, and rents average 4.09 €/m²/month. Student residences are in high demand, and the fact that Toulouse is a university town is certainly a factor.
If the investor has decided to manage the rental of the property himself (arrivals, departures, inventory of fixtures, etc.), it is important to compare the profitability of a property in his region with that of another region to which management fees would be deducted by an agency.
If the investor leaves the property to be managed by an agency, the proximity has no impact on the management of the property, it is then judicious to turn to the most profitable zone.
Furthermore, if the property is located in a different area than the investor's place of residence, it may be wise to inquire about the pricing conditions of the local banking institutions, and compare the different French banks. There may be significant differences in rates between two regions, or some interesting banks may be present in only one region.
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