For 100,000 euros all inclusive, you can buy a modest house in the countryside. But buying a property in one of the 50 largest French cities is immediately more difficult. In which French cities is the purchase of properties for a total budget of 100,000 euros all inclusive still profitable?
Real estate: a budget of 100,000 euros all inclusive?
With soaring mortgage rates and tightening lending conditions, it is now preferable to do without banks. Borrowing to invest in real estate does not bring any advantage, except in the case in which important works have to be carried out (land deficit). Beanstock has thus identified 5 cities where to invest with 100,000 euros. ” This amount includes the purchase price, notary fees, renovations and furnishings, as well as our rental assistance and management services. “Says Matthieu Hatte, head of real estate at Beanstock. Obviously, apart from the price per square meter, for a rental investment, what matters above all is the dynamism of the rental market. Again, proptech closely monitors the vacancy rate for rent.
| SUPERIOR | City | Price per m2 | Recommended area (in m2) | Net return expected |
|---|---|---|---|---|
| 🥇 1 | Perpignan | 1,836 € / sqm | 36 sqm | |
| 5.4% | 🥈 2 | Metz | 2,829 € / m2 | 25 sqm |
| 5.0% | 🥉 3 | Avignon | 2,430 € / sqm | 25 sqm |
| 4.6% | 4 | Le Havre | 2.052 € / sqm | 27 sqm |
| 4.2% | 5 | Rouen | 2,857 € / m2 | 24 sqm |
4.2%
- (source: Beanstock,
- profitability not guaranteed.)
- Perpignan is one of the cities that stand out for “affordable prices and record profitability”. “With an average price per m2 of 1,500 euros per square meter, the Perpignan real estate market allows for the acquisition of promising properties on a limited budget. The city should follow a similar trajectory to Nîmes or Béziers in the region and prices will rise, ”comments Beanstock. In addition to the low vacancy rate, the market is affected by the introduction in Perpignan in 2021 of the rental permit intended to combat slum owners. These new legal requirements are driving up prices and rents, with some owners even being forced to withdraw their property from rent, which exacerbates market tension, the study says. This dual dynamic allows an investor to achieve a net return of 5.4% (or even more for small properties) with the acquisition of a 36m2 property, says Beanstock.
- Metz: Still affordable (2,829 euros / m2), Metz is often “undervalued” but “destined to grow”. With a budget of 100,000 euros, an investor can get a 5% return on the purchase of a property up to 25 m2. Prices have risen by more than 40% in 5 years, the study report reads. Another highlighted advantage: the low property tax which averages 450 euros per year for a large two-room apartment.
- Avignon: With already over 62% of tenants, the city now welcomes many young executives, particularly from Lyon, who have chosen to move away from the big cities to benefit from a more pleasant environment and a high standard of living, Beanstock points out. While the price increase already sustained for 5 years is accelerating (+ 12% in one year), 2022 constitutes a favorable entry point for a startup investment judge. Estimate the net profitability an investor can expect by purchasing a 25m2 studio at 4.6% per year.
Le Havre: The second largest port city in France, and moreover a student city, Le Havre is doing well: despite the 15% price increase in one year, the cost of stone remains lower than most big cities. We can aim for an average net profitability of 4.2% for a 27 m2. In some student districts it can even exceed 5%.
Rouen: The proximity to Paris (1h30) and the presence of a university center make Rouen a “low-cost asset investment”. Almost 7 out of 10 inhabitants are tenants there. It takes an average of 17 days to rent a property. “This is all the more true in the hypercentre with its beautiful half-timbered houses that attract young executive couples,” says Beanstock. With a budget of € 100,000, a buyer can expect an average return of 4.2% for a 24m2 property. Strasbourg and Saint-Etienne: bad projects … Strasbourg and Saint-Etienne excluded from the first cities. “
Strasbourg does not appear in the selection. However, it is possible to find apartments for less than 100,000 euros but the profitability reaches only 3.5%
“Says Matthieu Hatte. Prices have exploded to more than 5,000 euros per m2 but rents are not followed, decipher the real estate specialist. On the contrary, in Saint-Etienne it is possible to aim for very comfortable yields on average around 6-7%, but the rental voltage is too low and many properties find no buyers.
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