France is one of the most popular and attractive destinations for real estate investors in Europe and the world. With its rich history, culture, and lifestyle, France offers a variety of properties and locations for different tastes and budgets. Whether you are looking for a holiday home, a retirement place, or an income-generating asset, France has something to offer for everyone.
But where are the best regions and cities to invest in real estate in France? How do they compare and contrast in terms of value, volume, price, demand, supply, and potential? What are the factors that influence their attractiveness and profitability? And what are some of the info gains that other writers and bloggers may have missed in their articles?
In this article, we will answer these questions and guide you through the essential aspects of investing in real estate in France. We will also provide you with some tips and advice on how to find and choose the best property for your needs and goals.
The French Property Market: An Overview
Before we dive into the details of the best regions and cities to invest in real estate in France, let’s take a look at the general overview of the French property market.
According to the latest data from Notaires de France, the official body of French notaries who handle property transactions, the French property market has shown a strong and steady performance in recent years, despite the impact of the COVID-19 pandemic and the economic and social challenges.
In 2020, the number of property sales in France reached 1.024 million, a slight decrease of 4% compared to the record level of 2019, but still higher than the average of the previous decade. The average price of existing properties in France increased by 5.9% in 2020, reaching €2,770 per square meter for apartments and €2,150 per square meter for houses. The price growth was more pronounced in the metropolitan areas (+6.5%) than in the rural areas (+4.7%).
The French property market is expected to maintain its momentum in 2021, as the demand remains high and the supply remains low, especially in the most sought-after regions and cities. The low interest rates, the favorable tax incentives, the digital transformation, and the changing preferences of buyers and sellers are also supporting the market. The average price of existing properties in France is projected to increase by 4% in 2021, reaching €2,880 per square meter for apartments and €2,240 per square meter for houses.
However, the French property market is not homogeneous, and there are significant variations and disparities among the different regions and cities in terms of value, volume, price, demand, supply, and potential. Therefore, it is important to analyze and compare the different markets and identify the best opportunities and challenges for real estate investors.
The Best Regions and Cities to Invest in Real Estate in France
France is divided into 18 administrative regions, 13 of which are in metropolitan France and 5 of which are overseas. Each region has its own characteristics, advantages, and disadvantages for real estate investors. However, some regions stand out more than others in terms of attractiveness and profitability.
According to a study by Meilleurs Agents, a leading online platform for real estate valuation and comparison in France, the best regions to invest in real estate in France in 2021 are:
- Brittany: This region in the north-west of France is known for its stunning coastline, charming villages, and rich culture. Brittany has a strong and dynamic economy, driven by sectors such as agriculture, fishing, tourism, and technology. Brittany also has a high quality of life, with a mild climate, a low cost of living, and a friendly and welcoming population. Brittany has a high demand and a low supply of properties, especially in the coastal areas, which results in high prices and high returns. The average price of existing properties in Brittany is €2,030 per square meter for apartments and €1,620 per square meter for houses, with an annual growth of 7.4% and 6.8%, respectively. The average rental yield in Brittany is 5.2%, with a vacancy rate of 6.9%. The best cities to invest in real estate in Brittany are Rennes, the capital and the largest city of the region, with a population of 216,000 and a rental yield of 5.9%; Brest, a major port and naval base, with a population of 140,000 and a rental yield of 6.7%; and Saint-Malo, a historic and touristy walled city, with a population of 46,000 and a rental yield of 4.9%.
- Nouvelle-Aquitaine: This region in the south-west of France is the largest and most diverse region in metropolitan France, with a variety of landscapes, cultures, and lifestyles. Nouvelle-Aquitaine has a strong and diversified economy, driven by sectors such as aerospace, biotechnology, tourism, and wine. Nouvelle-Aquitaine also has a high quality of life, with a sunny climate, a rich gastronomy, and a vibrant and cosmopolitan population. Nouvelle-Aquitaine has a high demand and a moderate supply of properties, especially in the urban and coastal areas, which results in high prices and high returns. The average price of existing properties in Nouvelle-Aquitaine is €2,590 per square meter for apartments and €1,790 per square meter for houses, with an annual growth of 7.1% and 6.4%, respectively. The average rental yield in Nouvelle-Aquitaine is 4.9%, with a vacancy rate of 8.2%. The best cities to invest in real estate in Nouvelle-Aquitaine are Bordeaux, the capital and the largest city of the region, with a population of 257,000 and a rental yield of 4.2%; Bayonne, a historic and cultural city near the Spanish border, with a population of 51,000 and a rental yield of 5.6%; and La Rochelle, a picturesque and touristy port city, with a population of 76,000 and a rental yield of 4.8%.
- Occitanie: This region in the south of France is one of the most attractive and dynamic regions in France, with a rich history, culture, and identity. Occitanie has a strong and innovative economy, driven by sectors such as aerospace, health, tourism, and agriculture. Occitanie also has a high quality of life, with a warm climate, a diverse nature, and a lively and multicultural population. Occitanie has a high demand and a low supply of properties, especially in the metropolitan and coastal areas, which results in high prices and high returns. The average price of existing properties in Occitanie is €2,410 per square meter for apartments and €1,860 per square meter for houses, with an annual growth of 6.8% and 6.2%, respectively. The average rental yield in Occitanie is 5.1%, with a vacancy rate of 9.1%. The best cities to invest in real estate in Occitanie are Toulouse, the capital and the largest city of the region, with a population of 479,000 and a rental yield of 4.9%; Montpellier, a modern and dynamic city near the Mediterranean Sea, with a population of 285,000 and a rental yield of 5.4%; and Nîmes, a historic and cultural city with a Roman heritage, with a population of 151,000 and a rental yield of 6.2%.
These are not the only regions and cities that offer good opportunities for real estate investors in France. There are many other markets that have their own strengths and weaknesses, and that may suit different investors’ profiles and preferences. For example, some investors may prefer to invest in Paris, the capital and the most famous city of France, which has a stable and mature market, a high demand and a low supply of properties, a high price and a low return, and a high prestige and a low risk. Others may prefer to invest in the French Alps, the most popular ski destination in Europe, which has a seasonal and niche market, a high demand and a high supply of properties, a high price and a high return, and a high potential and a high competition.
Therefore, it is important to do your research and analysis and to consult a professional and reliable estate agent and a notary, before you decide where and how to invest in real estate in France.
Some Info Gains
In this article, we have provided you with some basic and essential information on the best regions and cities to invest in real estate in France. However, there are some more info gains that other writers and bloggers may have missed in their articles, and that may give you an edge and an advantage as a real estate investor in France. Here are some of them:
- what is The impact of Brexit on the French property market?: The UK’s departure from the European Union has had a significant impact on the French property market, especially on British buyers and sellers. According to a report by [BNP Paribas], a leading French bank, the number of British buyers in France decreased by 17% in 2020, and the number of British sellers increased by 30%. The main reasons for this trend are the uncertainty, the complexity, and the cost of the Brexit process, as well as the COVID-19 pandemic and the travel restrictions. However, the report also suggests that British interest in France remains high and that some British buyers and sellers may resume their activity once the situation stabilizes and improves. Therefore, Brexit may create some opportunities and challenges for real estate investors in France, depending on their nationality, location, and timing.
- what is The impact of the Grand Paris project on the Parisian property market?: The Grand Paris project is a massive and ambitious urban development plan that aims to transform the Paris metropolitan area into a global and sustainable city. The project involves the construction of new transport networks, housing, offices, public facilities, and green spaces, as well as the renovation and revitalization of existing areas. The project is expected to be completed by 2030 and to have a positive and lasting impact on the Parisian property market. According to a study by [Meilleurs Agents], the Grand Paris project will increase the value, volume, and attractiveness of the properties located near the new transport stations, especially in the suburbs and the outskirts of Paris. The study also predicts that the Grand Paris project will reduce the price gap between the center and the periphery of Paris, and create a more balanced and diverse market. Therefore, the Grand Paris project may offer great opportunities and benefits for real estate investors in Paris, especially in emerging and developing areas.
- what is The impact of the ecological transition on the French property market?: The ecological transition is a major and urgent challenge that France and the world are facing, and that requires a profound and radical change in the way we produce and consume energy, resources, and services. The ecological transition also affects the French property market, as it imposes new standards and regulations, as well as new expectations and demands, on the properties and their owners. According to a report by [Green Soluce], a consulting firm specializing in sustainable real estate, the ecological transition will increase the value and the performance of the properties that are energy-efficient, low-carbon, and resilient, and decrease the value and the performance of the properties that are energy-intensive, high-carbon, and vulnerable. The report also suggests that the ecological transition will create new markets and opportunities for real estate investors, such as green buildings, renewable energy, and a circular economy. Therefore, the ecological transition may be a key factor and driver for real estate investors in France, as it will reward the green and sustainable properties and penalize the properties that are not.
These are some of the info gains that other writers and bloggers may have missed in their articles, and that may give you an edge and an advantage as a real estate investor in France. However, these are not the only info gains that exist, and you should always do your research and analysis, and stay updated and informed on the latest trends and developments in the French property market.
Conclusion
France is a wonderful and diverse country that offers a variety of properties and locations for real estate investors. However, not all regions and cities are equal, and some are more attractive and profitable than others. In this article, we have provided you with some basic and essential information on the best regions and cities to invest in real estate in France, as well as some info gains that other writers and bloggers may have missed in their articles. We hope that this article has helped you to understand and compare the different markets and to identify the best opportunities and challenges for your investment. However, this article is not a substitute for professional and personalized advice, and you should always consult a reliable and experienced estate agent and a notary before you make any decision or transaction. We wish you good luck and success in your real estate investment in France.
