investing in french real estate

France’s Top 3 Cities to Invest In

June 05, 2013 / by / 0 Comment
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The site Explorimmo publishes its annual list of the ten most attractive cities for French investors when it comes to new or existing real estate. Pierrick Fay reports for Les Echos.

The southwest cities of Bordeaux and Toulouse rank first in a list of French cities in which to invest in real estate. These accolades were earned via Explorimmo and Explorimmoneuf.com, which measured “the dynamism and attractiveness of real estate in France’s thirty most populous cities.” The sites analyzed the investment in both old and new real estate, on the basis of eight criteria such as evolution in demography, changes in employment and in student population and, of course, the evolution of prices and rents (INSEE figures, notaries, FPI).

The Southwest is particularly attractive for investors, with Bordeaux ahead of Toulouse,  and the entire region well ahead of the Southeast region (Toulon ranks 5th, Nice 8th, in front of Marseille and Montpellier). Paris moved into third place, despite high prices, which stifle the rental yield.

Bordeaux, Right Bank, Left Bank

Bordeaux benefits from rapid population growth (+9.91%), as well as from the proliferation of urban projects such as the eco-districts (Bordeaux Airpark Campus, Bioparc, etc..) along with the renewal of the center or the Jacques Chaban-Delmas bridge, which represents the link between the two banks of the Garonne.

The city of Bordeaux plans to host 1 million inhabitants by the 2030 horizon and aims to build an additional 50,000 housing units by that time.

The Airbus and TGV Effects in Toulouse

Toulouse continues its rise among the top cities in which to invest and reaches the second step of the podium this year (6th in 2012), again due to its demographic dynamism and especially its economic growth (the ‘Airbus effect’). Development projects such as Euro Southwest have gained steam, in anticipation of the arrival of the TGV (bullet train) in Toulouse, which will put the city at only 3 hours and 15 minutes from Paris by 2020. However, the student population has decreased slightly.

The Dynamism of Paris Comes at a Steep Price

Third in the rankings, Paris climbs one spot, supported by the evolution of its population (+5.09%) and its economic dynamism. Prices remain high in the capital, including in new real estate (10,750 euros per square meter in 2012, up 2.5%), as well as in rental prices. But low rental yields in the capital tend to scare away investors.

The complete results – available in the magazine Explorimmoneuf – also show the beautiful performance of Strasbourg ” the ambitious city”, which moved from 8th to 4th place in one year.

 

ABOUT THE AUTHOR

Dom Einhorn is a proud Alsatian interested in a wide variety of subject matter, from literature and politics to science and sports. He speaks 5 languages fluently and calls both Wyoming and France "home." Dom is also a trivia fanatic and the editor of MastersOfTrivia.com.