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What will happen in the Auvergne-Rhône-Alpes real estate market? Will prices rise or fall? Is Lyon still a prime location for foreign investors? How is the French government influencing real estate policies and taxes in 2025?
We’re frequently asked these questions because we’re deeply engaged in this market. Through our collaborations with notaries, real estate agents, and clients purchasing properties in the region, we’ve gathered firsthand insights.
That’s why we crafted this article: to deliver clear answers, insightful analysis, and a comprehensive perspective on market predictions and forecasts.
Our aim is straightforward: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.
1) More foreign buyers will invest in Lyon as it becomes a key European business hub
In recent years, Lyon has been gaining recognition as a prominent European business hub, which is likely to lead to an increase in the number of foreign buyers in the city. One of the key factors contributing to this trend is the rising number of international companies establishing offices in Lyon. The city is home to 388 foreign-owned entities employing 57,800 people, showcasing a strong international business presence.
Additionally, Lyon hosts major international institutions like the World Health Organization's International Agency for Research on Cancer and Interpol, further enhancing its appeal to global businesses. The city's strategic location and excellent transportation links, with its airport offering services to over 120 destinations, make it easily accessible for foreign investors.
Moreover, the Lyon Convention Centre hosts over 200 events annually, attracting industry experts and researchers from around the world. This influx of international visitors and the media coverage of these events highlight Lyon's growing reputation as a business hub. The local government's initiatives to attract foreign investment, such as support from Team France Export, also play a crucial role in drawing foreign buyers to the city.
Sources: ONLYLYON Business, GL Events Lyon
2) Property prices in Saint-Étienne will drop as young people move to bigger cities
The property market in Saint-Étienne is experiencing a decline in prices, and one of the main reasons is the movement of younger populations to larger cities. In the past few years, particularly in 2023 and 2024, there was a noticeable trend of young people leaving Saint-Étienne for bigger cities like Lyon and Paris. This migration is part of a broader pattern where younger residents are drawn to metropolitan areas for better opportunities.
One of the key factors driving this migration is the job market. Saint-Étienne's job market is less dynamic compared to larger cities, which are hubs for employment in the private sector. Most job opportunities are concentrated in cities like Lyon, Grenoble, and Clermont-Ferrand, making them more attractive to young professionals. Additionally, recruitment challenges in Saint-Étienne, especially in sectors like construction and health, make it less appealing for those seeking career growth.
Surveys and interviews with young residents have shown a preference for living in larger urban areas. These preferences are influenced by the availability of better job opportunities, cultural attractions, and lifestyle amenities in cities like Lyon and Paris. As a result, the demographic structure in Saint-Étienne is changing, with a smaller proportion of the 0-24 age group compared to other major urban areas.
Historical property price trends in Saint-Étienne have shown a correlation with these demographic shifts. As younger residents move away, property prices tend to decline. In January 2025, the monthly growth rate of property prices in Saint-Étienne was -4.62%, indicating a decline in property values. Real estate market analyses also predict a decline in demand for properties, with the average price per square meter being relatively low.
Sources: Doorfeed, Auvergne-Rhône-Alpes CCI, EURES, Adrian Leeds
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of France. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
3) Demand for modern urban apartments in Lyon will grow as more young professionals move in
The influx of young professionals into Lyon is set to drive demand for modern, urban apartments due to several key factors.
Firstly, the population of Lyon has been steadily increasing, with a 0.74% growth rate in 2023 and 2024, indicating an influx of new residents, including young professionals. This demographic shift is supported by the city's booming tech and startup sectors, which have created numerous job opportunities, attracting young talent to the area.
Moreover, young professionals often prefer urban living environments that offer good public transportation, cultural activities, and a vibrant social scene. Lyon meets these preferences with its extensive public transportation network, including new tram lines T9 and T10, enhancing connectivity and making the city more appealing to this demographic.
Additionally, the real estate market in Lyon shows rising prices and demand for urban apartments, with a median price of €4,031/m², reflecting a strong market for modern living spaces. Real estate agents in the city report high demand for such apartments among young professionals, driven by Lyon's attractive lifestyle and economic opportunities.
Sources: Only Lyon Business, Properstar, Urban Transport Magazine
4) Foreign buyer demand in Ardèche will grow as it becomes a popular wellness tourism retreat
In recent years, the Ardèche region has been gaining attention as a prime location for wellness tourism. This trend is largely driven by the global wellness tourism market, which has been expanding rapidly. By 2032, it's expected to grow at a compound annual growth rate (CAGR) of 9.1%, reflecting a strong consumer interest in health and wellness activities.
In 2023 and 2024, the Auvergne-Rhône-Alpes region, where Ardèche is located, generated significant revenue from tourism, with a notable portion coming from wellness activities. This indicates a solid foundation for the growth of wellness tourism in the area. Additionally, the global wellness tourism market is projected to surpass $1 trillion by 2024, suggesting robust recovery and future growth, which could attract more international attention to regions like Ardèche.
Moreover, the expansion of Lyon-Saint Exupéry Airport's European routes and services makes the region more accessible to international visitors. This increased accessibility, combined with the growing interest in wellness tourism, positions Ardèche as an attractive destination for foreign buyers looking for wellness retreats.
Sources: Wellness Tourism Market Expanding at 9.1% CAGR By 2032, Lyon Airport Pursues European Growth: Adding Destinations, Increasing Services, Key figures for Auvergne-Rhône-Alpes
5) Foreign investment in Haute-Loire will drop as buyers look for easier-to-reach areas
Foreign investment in the Haute-Loire region is expected to decline as buyers seek more accessible locations.
One big reason is the limited transportation infrastructure in Haute-Loire. Compared to other parts of Auvergne-Rhône-Alpes, it's harder to get around here. This lack of connectivity makes it less appealing to foreign investors who prefer areas with better access to major cities and transportation hubs.
Haute-Loire's lower population density means fewer amenities and services. This can be a turn-off for foreign investors who often look for regions with a higher quality of life and more comprehensive services. Plus, historical data shows that property appreciation rates here are lower than in other regions, suggesting that Haute-Loire might not offer the same investment potential as more dynamic areas.
Surveys on foreign buyers' preferences show a clear trend: they favor urban or well-connected areas. This is likely because they need easy access to markets, services, and economic opportunities. As a result, there's been increased investment in more accessible regions like Lyon or Grenoble, which offer better connectivity, a higher quality of life, and more comprehensive services.
These cities are becoming more attractive to foreign investors, leaving Haute-Loire in the dust. The trend is clear: investors are looking for places where they can easily connect with the rest of the world and enjoy a higher standard of living.
In short, the combination of limited infrastructure, fewer amenities, and lower property appreciation rates makes Haute-Loire less appealing to foreign investors. They're turning their attention to regions that offer more in terms of connectivity and lifestyle.
Sources: Business France, EY, INPI
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6) More foreign buyers will seek properties in Beaujolais because of its global wine reputation
Foreign buyers are increasingly eyeing properties in the Beaujolais region, thanks to its growing international wine reputation.
In recent years, there's been a noticeable uptick in property inquiries from international buyers, which aligns with the region's enhanced wine quality and value. This trend is expected to continue, as property prices in the Rhône department have increased significantly, making it an attractive investment opportunity.
Beaujolais wines are gaining traction in international markets, especially in the UK, where producers are focusing on exports for higher prices. This surge in demand is partly due to improved wine quality, highlighted by media outlets like *The Times* and *Le Parisien*. These publications emphasize the region's commitment to sustainability and the high quality of its wines, further boosting its reputation among wine enthusiasts.
The region is also actively promoting itself as a wine tourism destination, hosting a growing number of international wine festivals and events. These efforts attract more foreign visitors and potential buyers, contributing to the rising interest in Beaujolais properties. Additionally, the number of certified organic estates in the region has increased, indicating a growing foreign interest in investing in wine-producing areas.
Sources: Home Hunts, The Drinks Business
7) Yields in Drôme will drop as more homes become short-term rentals
The Drôme region has seen a noticeable increase in short-term rental listings, particularly on platforms like Airbnb. This trend mirrors the broader growth in short-term rentals across the Auvergne-Rhône-Alpes area, as well as in other popular regions like Provence – Alpes – Cote d’Azur.
Local government reports have highlighted a rise in properties being registered as short-term rentals. This shift suggests that property owners are increasingly favoring short-term rental models over long-term leases, which could lead to a decline in long-term rental yields.
Additionally, real estate market analyses indicate that the demand for short-term rentals is driving up property prices. This makes it more challenging for long-term rentals to remain viable, potentially reducing their yields. The increased tourism in Drôme further fuels the demand for short-term accommodations, exacerbating the issue.
Sources: DoorLoop Blog, InsideBnB, Grand View Research, Rentalscaleup
8) Property prices in rural Auvergne will rise unexpectedly as remote work becomes more common
Remote work has transformed where people choose to live, especially in France.
Back in 2023 and 2024, nearly 30% of the French workforce was working from home, a massive jump from pre-pandemic times. This shift has opened up new possibilities for living arrangements, making rural areas more appealing. People are now rethinking their living spaces, and the countryside is calling.
Why the countryside? Well, remote work offers a better work-life balance. Many find rural areas quieter and more conducive to mental well-being. This is especially true for women and parents, who say it's easier to juggle work and family life away from the hustle and bustle of the city.
Another big factor is the boost in internet infrastructure in rural regions like Auvergne. With better broadband, working remotely from these areas is now a real option. This has sparked a trend of people moving from cities to the countryside, drawn by the promise of cleaner air and a slower pace.
In Auvergne, these changes are particularly noticeable. The region is seeing a surprising rise in property prices as more people embrace remote work. The appeal of rural living is growing, and with it, the demand for homes in these areas.
As remote work becomes more common, the rural property market is heating up. People are looking for homes that offer tranquility and space, and they're finding it in places like Auvergne. The countryside is no longer just a weekend escape; it's becoming a permanent home for many.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in France versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
9) Rental yields in Savoie will drop as more properties become second homes
The rental market in the Savoie region is facing a decline in yields as more properties are snapped up as second homes.
With property prices climbing, Savoie has become a hotspot for second-home buyers. This surge in purchases means fewer homes are available for rent, squeezing the rental market. As a result, rental yields are likely to drop because there are simply fewer properties to go around.
There's been a noticeable uptick in properties listed as second homes. This trend is not just about owning a piece of paradise; it's also about the booming short-term rental market. Tourists flock to Savoie, and many homeowners prefer to rent out their properties for short stays, which further shrinks the long-term rental pool.
Affluent buyers are particularly drawn to Savoie, lured by its stunning landscapes and vibrant tourism scene. Local government data backs this up, showing an increase in building permits for vacation homes. This indicates a clear shift towards investing in second homes rather than rental properties.
Real estate market analyses echo this trend, pointing out that rising property values and the allure of vacation homes are pushing more buyers towards second-home ownership. This shift is reshaping the rental landscape, making it tougher for long-term renters to find options.
Sources: French Property, Rental Housing Journal
10) Demand for homes in quiet, scenic areas will grow as more retirees move to the region
The growing number of retirees in the Auvergne-Rhône-Alpes region is a key factor in increasing demand for properties in quieter, scenic areas. In 2024, the region had a significant retiree population, with 1,742,893 individuals aged 65 and above. This demographic shift suggests a rising interest in retirement-friendly locations.
Retirees often seek peaceful environments that offer a high quality of life, and the region's scenic beauty and supportive community settings make it an attractive choice. The popularity of retirement villages like Les Girandières and Village Saint Joseph, which provide modern amenities and a sense of community, highlights this trend.
Additionally, the senior housing sector in France is expanding rapidly, with more facilities opening each year in rural and scenic areas. This growth is driven by the need to cater to an ageing population, further increasing demand for properties in these locations.
Sources: City Population, Knight Frank, Lexidy
11) Rental yields in Haute-Savoie will rise as it becomes a year-round tourist spot
Rental yields in the Haute-Savoie region are poised to increase as it becomes a year-round tourist destination. This shift is largely due to the region's strategic development of new tourist attractions and infrastructure, which has been a focus since 2023. The Auvergne-Rhône-Alpes Tourisme strategy has been promoting the region's diverse offerings, including cultural and leisure activities, historical heritage, and natural beauty.
In 2023 and 2024, there was a noticeable rise in the number of events and festivals held outside the traditional ski season. This diversification of tourist activities has been aimed at attracting visitors year-round, not just during winter months. Additionally, surveys from those years indicated a growing trend of off-peak season travel to Haute-Savoie, suggesting that the region is becoming more appealing for tourists seeking activities beyond traditional skiing.
Moreover, the region has seen increased investment in hospitality and leisure facilities, with towns like Annecy experiencing competitive apartment prices and a favorable market for investors. This investment is supported by real estate market reports indicating an increased demand for rental properties, driven by the growing popularity of Haute-Savoie as a tourist destination during both winter and summer seasons.
Sources: Chamrousse, My French House, OVO Network
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12) Rental yields in Lyon will rise as the student population grows
Rental yields in Lyon are climbing thanks to a booming student population.
Lyon's universities are seeing a surge in students, with a 2% enrollment increase in 2019-2020, making it one of France's fastest-growing student hubs. This influx is creating a high demand for student housing, especially in trendy areas like La Presqu'île and La Croix-Rousse, where finding affordable places is tough.
Students prefer renting over buying since their stay is usually short-term, which keeps the rental market hot. The city's plans to expand its educational facilities are expected to draw even more students, further boosting the demand for rentals.
In these popular neighborhoods, rental prices are steadily rising, driven by the limited supply of student accommodation. This scarcity means students often struggle to find suitable housing, pushing rental yields higher.
With more students flocking to Lyon, landlords are likely to see continued growth in rental yields. The city's vibrant student life and expanding educational opportunities make it an attractive destination for young people.
As Lyon continues to develop its educational infrastructure, the rental market is set to benefit from the increasing number of students seeking housing. This trend is a promising sign for property investors looking to capitalize on the city's growing appeal.
Sources: Nestpick, Global Property Guide
13) Suburban Lyon property prices will rise as families look for more space and a better quality of life
The suburbs of Lyon are becoming a hot spot for families looking for more space and a better quality of life.
Families are increasingly drawn to areas like Villeurbanne, where property prices have been climbing as more people seek the perks of suburban living. This shift is largely due to a growing desire to escape the hustle and bustle of the city center.
In the Auvergne-Rhône-Alpes region, particularly in Haute Savoie, house prices are on the rise as families move from urban to suburban settings. The pandemic has nudged people towards wanting larger homes and open spaces, which are more abundant in these areas.
Infrastructure upgrades in Lyon's suburbs are making them even more appealing. For instance, the transformation of the metropolitan highway into a multimodal boulevard is set to cut down traffic and boost the quality of life, making these areas more attractive.
The rise of remote work is another factor, offering people the flexibility to live further from their workplace. This has made suburban areas a viable option for those who can work from home, further driving up demand.
With these changes, it's no surprise that the suburbs of Lyon are seeing a surge in interest from families seeking a better lifestyle. The combination of improved amenities and the allure of more space is hard to resist.
Sources: Lebonbon, French Property, Institut Paris Region
14) Property prices in Clermont-Ferrand will rise steadily as it becomes a hub for green tech innovation
Clermont-Ferrand is on the path to becoming a major hub for green technology innovation, which is expected to lead to a steady rise in property prices. One of the key factors driving this change is the increasing investment in green technology startups, such as Lhyfe's green hydrogen production plant in Le Cheylas. This plant is part of a broader strategy to develop a renewable and low-carbon hydrogen economy in the Auvergne-Rhône-Alpes region, which will contribute to the reindustrialization of the area.
Additionally, government incentives like the Just Transition Fund are providing significant financial support to the region. With €190 million in grants, this fund aims to support the socio-economic consequences of decarbonizing polluting industries, creating new businesses in future-proof sectors, and deploying technologies for affordable clean energy. This financial backing is expected to attract more green tech companies to the area, further boosting the local economy.
Moreover, the development of research and innovation centers, such as Parc Cataroux, is fostering collaboration and the cross-fertilization of ideas. This site prioritizes innovation and future technology, providing a space for promising projects in the impact economy to emerge. As these projects take off, they will likely attract more talent and businesses to Clermont-Ferrand, increasing demand for housing and driving up property prices.
Sources: Lhyfe, European Commission, Michelin
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.