21 Jan. 2022

Make a success of your rental investment in Paris

rental investment in Paris

In these turbulent post-Covid times and with the subsequent economic crisis, real estate appears more than ever to represent a safe haven. Buy to rent allows you to create a real estate portfolio and generate rental income. Are you thinking of making a rental investment in Paris? District Immobilier provides you with all the keys to a successful project.

Why should making a rental investment in Paris be a success?

Paris is a great choice for an investment in rental property. The reasons are multiple: here are the main ones.

A major tourist attraction

While it is unquestionable that Paris attracts more tourists than any other city in France, it is also a privileged destination on an international scale. Tourists flock from all over the world to discover the Eiffel Tower, the Louvre or the Champs-Élysées, and visit the capital’s gourmet restaurants and fashion boutiques.

Investing in rental accommodation for tourists in Paris is therefore a very wise option. The demand for seasonal accommodation is high, whatever the time of year.

Paris: a student city

Paris is a student and university city.

Paris Descartes and the Sorbonne are among the most renowned universities in France and even the world. The Erasmus program, with students spending one or more years of their university term in France, attracts foreign students from across the globe. The Ecole du Louvre and prestigious business schools also draw foreign students.

So it’s clear, with so many students in Paris rental demand is very high and is not diminishing.

A dynamic job pool

The capital’s flourishing economy is a real asset for real estate.

Small, medium and large national and international companies choose to settle in Paris and the Paris region.

In 2019, no less than 1,354,704 companies were listed in the Île-de-France, and with so many jobs rental demand is on the increase.

A rental investment in Paris should therefore be a safe and profitable investment.

To maximize your chances of success, don’t hesitate to contact us to talk about your project.

How has the Covid crisis affected the Paris real estate market?

The health crisis impacted all sectors of society.

  • However real estate remains a very attractive investment.
  • In Paris, rents are constantly on the increase, to such an extent that the State has decided to regulate them.
  • The good news for investors is that rent controls should not impact the profitability of a rental investment.

These new rules should also have a positive effect on the creation of new housing.

The rent ceiling allows a more modest population to find housing and demand is increasing.

Upcoming events such as the Paris Olympics in 2024 will also have consequences for the prospect of future housing needs.

Which are the best neighbourhoods for a rental investment in Paris?

To make your rental investment project in Paris a success, nothing should be left to chance, and location is an essential criterion to be taken into account.

Obviously choose an area where rental demand is very strong, where prices are on the lower side and where all necessary amenities are nearby. Transport networks, shops and public services are essential for tenants looking for their future accommodation.

  • The following neighbourhoods appear particularly attractive: the 5th District, notably around Val-de-Grâce and the Jardin-des-Plantes where demand continues to grow;
  • the 9th District, around Rochechouart and Faubourg-Montmartre, two lively central neighbourhoods;
  • the 10th District, in particular around Saint-Vincent-de-Paul, Porte Saint-Martin and Saint-Louis Hospital which are resolutely modern neighbourhoods with excellent transport networks;
  • the 16th District, in the Auteuil, Muette and Porte-Dauphine neighbourhoods, very attractive to families;
  • the 18th District with particularly attractive prices around Grandes-Carrières and Clignancourt.

What type of asset for a successful rental investment in Paris?

All depends on who you are targeting

If you want to invest in student rental accommodation, a studio apartment or a compact 2-room apartment is large enough. These are keenly sought-after and always find takers.

Another option is to aim bigger and target flat sharing. Many students choose this not only owing to lower rent and charges, but also for its convivial aspect. Those starting on their career paths are often also interested by studios and two-room apartments. If you are targeting families, obviously choose assets with at least two bedrooms.

As we mentioned earlier: Paris is one of the most attractive tourist cities in the world, and consequently investing in holiday accommodation is a great way to make your rental investment a success. In many cases, you will get your rent from the residence manager whether your asset is rented or not. It is therefore an excellent low-risk investment!

Make a rental investment in Paris a success with District-Immobilier.

We shall help you choose your target in line with your expectations, your needs and your budget. The most competent and dedicated real estate professionals await your visit to make your project a reality! Don’t hesitate to contact us by email, by telephone or by directly visiting one of our agencies.

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