The 10 cities where to invest in real estate

Investing in real estate cannot be improvised.

There are a multitude of factors that can lead to the success of a project or its failure... Because we often think that everything is going to be fine when we make an investment, but there are often hazards that should not be overlooked. because it can quickly cost you dearly!

Which city to choose when you want to invest in real estate?

To choose the city, several elements are to be analyzed.

The SeLoger ad site offers its expertise with regularly updated price barometers to help you know the average price and the average rent for each area in order to determine your future profitability.

Here are some tips to help you choose the city:

• Does the city have good accessibility?

  At a time when teleworking has become widespread, this is an important asset if you are aiming for long rentals.

  For passing tourists who prefer the train, accommodation allowing easy access to a station is a plus.

• Does the city enjoy good dynamism or at least growth potential?

  Is there a job pool?

  If yes, what are the most represented occupations?

  Favor cities with a wide variety of jobs.

It is strongly recommended to live not far from this city or to know a trustworthy and relatively available person who lives there.

It is indeed necessary to go there from time to time, especially when changing tenants and to redo a little clean and new.

Even if you plan to entrust the management of your property to an agency, going there during rental holidays is a good idea and it is better not to have to cross France to get there!

It's a bit of the ba-ba of the real estate investor.

Ranking of 10 cities to invest in 2023

What are the 10 cities where to invest in 2023?

Montpellier and Marseille, offer interesting between rental yield (above about 5%) and vacation rate below the national average.

You will find old housing for a real estate investment.

In Toulouse, Bordeaux, Nantes, Rennes, you can invest in new buildings and benefit from Pinel +, which will be implemented from January 1, 2023.

If you have a very limited budget but are tempted by real estate investment, especially student rental, go to Avignon, Metz, Le Havre and Rouen.

It all depends on where you live and what kind of project you are planning.

Be that as it may, move around, take the pulse of the city and the neighborhood where the accommodation you have located is located, question the inhabitants you come across, talk to the shopkeepers... You will thus be able to better understand the area and its perspectives of evolution.

If you can, visit at different times of the day and evening (or even night).

Finally, follow your feelings and always opt for accommodation where you would live yourself!

The choice of city also depends on other elements related to the type of property: new or old and its size, especially if you opt for a student city.

The cities where to invest in the old

Invest in a beautiful old building, in the city center, close to shops, public transport, nurseries, schools and green areas.

A project that has something to charm more than one investor attracted by beautiful stones.

The advantage of the old compared to the new is also that it is bought between 15 and 30% cheaper and is therefore amortized more quickly.

In Montpellier, Marseille, and Lille, for example, gross profitability is around 5% for a small rented area.

Beware, however, of the energy label of housing in the old building.

Aim for housing whose DPE (energy performance diagnosis) is preferably classified D in order to avoid having to do too heavy work because the housing of energy sieves, housing rated from G to E will gradually be prohibited from rented and the owners will then have to renovate them.

This is why the owners, especially in Île-de-France, prefer to sell them now and you will certainly have to ask yourself this question... the feasibility of the work (financial, but also technical).

The cities where to invest in the new

The Pinel system is extended for the years 2023 and 2024, with decreasing tax reduction rates.

It is therefore important to keep this element in mind if you invest in new.

Cities like Toulouse, Bordeaux, Nantes and Rennes are good ideas for places to invest in new buildings.

It also depends on your real estate purchase budget...

Student cities where to invest

Renting to a student offers several advantages, including benefiting from the Visale guarantee or the parental guarantee which provides the rents.

You can also consider a lease for a period of 9 months to devote the summer period to tourist rental.

A good way to earn more money in a short time.

The accommodation must include sufficient furniture to enable the tenant to sleep, eat and live there properly.

Take the time to consult the list of furnishing elements defining a furnished accommodation, fixed by regulation.

France has more than forty student cities.

These include universities, colleges or campuses.

The big cities to follow are Rouen, Rennes and Lille.

You will need to make your calculations of profitability based on the purchase price, the amount of the rent, your expenses and your taxation to have a better idea of ​​the type of rental property purchase to be preferred.

Ask yourself the right questions for your real estate investment

For a successful rental investment, know for what and for whom the property in which you want to invest will be intended.

Do you intend to make a long-term rental?

Naked or furnished?

Do you rather have the idea of ​​devoting the accommodation to seasonal rental?

Do you want to make a 9 month lease for a student and then rent it to tourists during the summer period?

Do you want a house or an apartment?

What area?

These questions will allow you to specify your project and direct your choice towards such and such a city, more or less student, more or less attractive for visitors passing through in July and August.

The editorial staff of Le Parisien accompanies you with news on the real estate sector daily to help you in your choice.

Because real estate can be very complex depending on the investment mechanism chosen.

Don't hesitate to contact your real estate agent, a wealth management advisor... to get answers adapted to your situation.

Pay attention to these criteria before investing

• Aim for cities with dynamic demographics, where there is not an overabundance of rental properties.

• Check the vacancy rate, representing the percentage of empty and unoccupied units.

  The more there are, the more properties you will have to visit and a large choice.

  But the other side of the coin is that your accommodation may be more difficult to rent.

  The vacancy rate is calculated by INSEE.

  The national average is around 8%.

• Think of the property tax which is also an important criterion for making your choice: it can be disproportionately expensive in some cities.

  Find out more because it remains the responsibility of the owner.