Real Estate Magazine | Is it more profitable to buy or rent in 2020?

Illustration Adobestock

Illustration Adobestock

This year again, in many French cities, it is still more interesting to own than to rent.

In fact, the purchase pays for itself after 3 years and 5 months on average.

Should you buy your main residence or remain a tenant? That is the question ! In the 7th edition of his study “buy or rent? »*, The real estate loan broker analyzes the opportunity to buy or rent an average surface area of ​​70 m² in the 36 largest cities in France.

3 years and 5 months: the average holding time to make your purchase profitable

If we consider the entire territory, the acquisition of a property pays off on average after 3 years and 5 months for a 70 m², i.e. 1 year and 8 months more than in 2019 on average , according to the study.

“This year, it takes more time to make the purchase profitable, especially for large cities like Paris, Bordeaux or Lyon, but this is hardly surprising. 2019 having been an exceptional year, it was difficult to do so well, ”comments Maël Bernier, Director of Communications at

Beyond these 3 years and 5 months, people who decide to stay renters of this type of property start to lose money.

Illustration Adobestock
Illustration Adobestock
Illustration Adobestock

Caen, Clermont-Ferrand, Metz … faster profitability than in 2019

Some cities are seeing a decrease in the time it takes to hold a property for a profitable purchase, compared to last year.

These are Caen, Clermont-Ferrand or Metz.

Paris, Lyon, Montreuil … lengthy detention periods

The increase in the holding period necessary for the purchase to be profitable is increasing significantly in five major French cities: Paris, Lyon, Montreuil, Boulogne-Billancourt and Bordeaux.

Thus, in Paris, it takes 4 years and 8 months more than in 2019 for the purchase of your main residence to be “economically interesting”.

Lyon recorded the strongest growth: the city more than doubled the number of years necessary to reach profitability with 18 years, against 7 years and 6 months in 2019.

A phenomenon due to the sharp rise in prices recorded in this city which is experiencing the biggest development in France.

Grenoble, Perpignan, Le Havre… always so interesting to buy!

In Perpignan, Le Havre, Toulouse, Aix-en-Provence, Grenoble, it is always particularly interesting to buy, the property being profitable in less than 2 years.

The economic situation therefore remains particularly favorable in many cities.

* For the purchase, the study takes into account the price per m², the interest rates of the loan, the condominium fees and the property tax. For the rental, it analyzes the amount of rents and the return on the money invested that would have been spent on the personal contribution in the event of a purchase.

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