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In a context of generalized price decrease, only 4 cities continue to progress. Paradoxically, rents are on the rise. The combined effects drive potential returns higher.
The real estate market presents at least contrasting trends, according to the latest joint barometer between the FNAIM and the Observatory of Clameur rents.Lyon records a spectacular drop of 6.80% in its price per square meter in one year (-2.70% in 3 months!). The average price is now set at 4661 euros. Paris also takes a strong fall with -5.30% over a year. The capital remains for the moment above the 10,000 euros/m2 on average, a threshold it had crossed in 2019. But for how much longer? The other cities most affected by the price drop are Limoges (-7.90%) and Avignon (-7.30%).But while real estate prices have generally fallen in France, some cities have seen strong growth. In Nice, the price per square meter has climbed by 4.20% over one year, now reaching nearly 5000 euros, in a fairly dynamic market representing 8000 sales these last 12 months. Reims (+4.50%) and Perpignan (+4.70%) also saw their prices grow notably.
While the purchase price is experiencing a drop, there is an opposing trend occurring in rent prices. This trend is likely related to the growing number of households that cannot afford to buy, as credit conditions have become unfavorable. The result is an increase in demand facing a supply that does not progress. Thus, 9 out of the 10 largest cities in France saw the average amount of their rent per square meter increase over a year (Paris: +1.70%, Lyon: +2.40%, Nice: +4.50%). Only Bordeaux is among the cities that suffered a slight decrease, with -0.50% in one year. Saint-Étienne is leading the pack with the most impressive rent increases of +7.1% over a year, with the average rent now reaching 9€ per square meter. Rounding out the podium, Brest and Le Mans saw their rents increase by 5.5% and 5.6% respectively over the past 12 months.
According to data from organizations, it is in Saint-Etienne that the highest theoretical gross return is observed. This stands at 8.3% per year. This is followed by Le Havre (5.9%), Grenoble, Nîmes, and Clermont-Ferrand (5.7%). It is interesting to note that, despite high prices per square meter, some of the top 10 cities in the ranking continue to offer interesting yields, like Marseille which shows a potential of 5.2%, or even Toulouse at 4.3%. However, these figures remain only average estimates and should not be considered as a guarantee of profitability.
