More than 10,200 euros per square meter in Paris, 4,950 euros in the outer ring, and 3,070 euros in the outer ring: despite these new price records recorded at the end of 2019, good deals are still possible.
In the capital, and despite ever more restrictive regulations, it will be necessary, for example, to target furnished rental – classic or Airbnb – as well as parking lots. And, beyond the ring road, bet on the cumulative effect of Grand Paris and the 2024 Olympic Games, which should take off the rating of addresses around the 69 new stations planned, including in the new one.
Examples of real estate in Paris
In the old
In Paris, investors favor furnished accommodation, with rent ceilings on average 13% higher than those for the same property in bare rental. Sometimes, even knocking down a partition to transform a two-room apartment into … a studio. “The rent ceilings per square meter are more favorable, which helps to improve profitability,” said Frédéric Jaubert, associate director of Paris Seine Immobilier. The fact remains that it hardly exceeds 2.5% in the central districts, and 4.5% elsewhere. This 22 square meters on avenue de Clichy, sold 189,000 euros before a renovation requiring 1,000 euros per square meter, will only yield 4.3%.
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A few exceptions, however, in lower-income neighborhoods, such as the Goutte-d’Or, which finally seems to be changing. “Some ground floors start at 8,000 euros per square meter,” says Brice Moyse of Immopolis. Like rue Myrha, this studio of 18.5 square meters, completely redone, sold 150,000 euros. Ditto at La Chapelle, still in the 18th arrondissement, where the square meter, sometimes sold for 7,000 euros, gives hope for 6% yield.
Examples of real estate in Greater Paris
But it would be better to explore alternative tracks, such as parking lots. As long as you are selective: if the west and center areas are popular, as well as the 17th century near the new courthouse, conversely, demand is less strong in the eastern districts (XI, XII and XIIIth). As in the XIX and XXth, with the many vacant places. Profitability sometimes climbs to 8.5%, as for these parking lots on rue du Pôle-Nord in the 18th century, sold for 14,000 euros. In the center, where the budget is at least double, the ideal is to transform the place into three or four spaces for motorcycles. What increase the rent from 50 to 80%.
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Side walls of trade, it will take risks. “The best locations offer little profitability,” recalls Elvire Gallaine, commercial director of Coysevox. And if it ranges from 3% rue des Abbesses to 3.5% rue du Commerce, it climbs to 7% rue Ordener, in the 18th century, or rue de Crimée, in the 19th century.
Those ready to cross the ring road will target Vitry-sur-Seine, soon connected in 10 minutes to Châtelet, via line 14. “The square meter is sometimes worth less than 3,000 euros,” says Guillaume Varnier, director of real estate agencies in Greater Paris. Avenue du Colonel-Fabien, this three-room apartment of 56.5 square meters, with parking, paid 139,000 euros, can thus be rented for 800 euros (6.9% yield). Profitability found in the second ring, in the Yvelines and Val-d’Oise. “The budgets do not exceed 2,000 euros per square meter for a property to renovate, and 3,000 euros for a recent property, in the villages close to the stations,” summarizes Michel Platero, president of Fnaim du Grand Paris.
In the new
The notaries of Greater Paris, in a study published at the end of 2019, have not yet noted any particular inflation for goods located within a radius of 800 meters around the planned location of the Grand Paris Express stations. Also, to secure your operation, it will be better to privilege the safe cities to be served first. “Like Villejuif, which will have the Louis-Aragon stations on line 15, and the Gustave-Roussy Institute on the extended 15 and 14,” recalls Fabrice Artinian, of Patrimmofi.
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The new square meter varies from 5,500 to 7,000 euros. Boulevard Maxime-Gorki, this two-room apartment of 38.5 square meters, with a terrace on the ground floor, can be rented in Pinel at a price of 769 euros. Or, compared to its price of 236,000 euros, 3.9% yield. Profitability can exceed 4% by moving away: 4.4% in Gonesse (95) for this 42 square meters, in the Urban Village program of Nexity, rue Emmanuel-Rain. “While prices are around 4,000 euros per square meter, the proximity to Roissy will ensure strong rental demand,” says Philippe Zilberstein, president of Nexity Conseil et Patrimoine. But line 17 is not announced there until 2027. Note: in Paris, if some opportunities remain, it is most often necessary to do without Pinel so as not to plan the rent too much.
The rules in Airbnb
The new fashion for Airbnb fans? Transform the shops on the Parisian streets with little shopping into tourist accommodation. No wonder: the local already having a commercial activity, this avoids asking the town hall for a change of use authorization, most often refused, like paying the compensation consisting in putting a business on the traditional rental market. Provided that the destination of the premises is changed, profitability reaches records.
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Example with this 40 square meter shop on a street close to that of Cherche-Midi, sold by Paris Seine immobilier. In addition to the purchase price of 465,000 euros, 100,000 euros of transformation work will be added, giving an overall budget of 14,100 euros per square meter! But by placing the property for rent by the night, the 40,000 euros of annual income, expenses deducted, will serve 7% of yield.
To get started, aim if possible at a local courtyard with independent entrance, and check that it does not fall under the regime of protection of trade and crafts. And hurry: the town hall could indeed review the urban plan to curb the trend.
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