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What is happening in the Auvergne-Rhône-Alpes real estate market? Are prices on the rise or decline? Is Lyon still a magnet for foreign investors? How are regional policies and taxes shaping the real estate landscape in 2025?
These are the questions we hear every day from professionals, buyers, and sellers across the region, from Grenoble to Saint-Étienne and beyond. Perhaps you’re curious about these trends too.
We know this because we stay closely connected with local experts and individuals like you, exploring the Auvergne-Rhône-Alpes real estate market daily. That’s why we crafted this article: to offer clear answers, insightful analysis, and a comprehensive view of market trends and dynamics.
Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we missed the mark or could improve, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll strive to enhance this content for you.
1) Lyon's rents will keep increasing as it emerges as a key hub for startups and innovation
Rental prices in Lyon have been climbing steadily, with a furnished one-bedroom apartment costing about 24.3 euros per square meter by late 2023.
Lyon is now a top 10 innovative city in Europe, attracting over 40,000 companies, including 1,800 from abroad. This boom is largely thanks to the digital tech sector, where big names like Adept and Autodesk have set up shop.
The city is a magnet for young professionals and entrepreneurs, thanks to initiatives like the ‘Métropole French Tech’ label and programs such as the “Startup Ticket” and Big Booster accelerator. These efforts have made Lyon a key connector with the US tech scene and a hotspot for non-European startups.
Job opportunities in tech are driving up housing demand in Lyon. This demand, along with the city's growing population, is pushing property values higher, especially in areas favored by tech workers.
Sources: Statista, Intelligent Cities Challenge, Statista
2) Property investments in the region's ski resorts will rise as climate change makes higher-altitude locations more appealing
In recent years, particularly in 2023 and 2024, we've seen a noticeable trend in the property market within high-altitude ski resorts. This shift is largely driven by climate change concerns, which have made these locations more appealing to investors. As climate change continues to affect snowfall patterns, higher-altitude resorts are experiencing longer and more reliable ski seasons, making them a safer bet for property investments.
For instance, resorts like Val Thorens have benefited from longer ski seasons and more consistent snowfall, as highlighted in the Savills Ski Resilience Index. This reliability in snow conditions is a significant factor for investors looking for stable returns. Additionally, the rising property prices in well-established resorts, such as those in the 3 Vallées, reflect the increased demand for these high-altitude locations. Saint Martin de Belleville, with its direct access to the world's largest ski area, remains a prime example of this trend.
Moreover, the investment in sustainable infrastructure, such as energy-efficient snowmaking machines and solar-powered buildings, is becoming increasingly attractive to environmentally conscious buyers. This focus on sustainability not only aligns with global climate goals but also enhances the appeal of these properties. The Auvergne-Rhône-Alpes region's initiatives promoting sustainable tourism further support this trend, encouraging responsible tourism practices and highlighting committed tourist offers.
Sources: Skiing Property, Chamrousse, Savills US, Collection Chalet
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3) Swiss buyers will increasingly invest in border properties for personal use and rental income
In recent years, particularly in 2023 and 2024, property prices in Switzerland have been on the rise. This increase is largely due to strong demand driven by population growth from migration. As a result, the cost of buying a home in Switzerland has become quite high, making it less affordable for many potential buyers.
At the same time, the exchange rate between the Swiss Franc and the Euro has been favorable for Swiss buyers. This means that properties in regions like Auvergne-Rhône-Alpes, which are close to the Swiss border, have become more affordable for them. This financial advantage encourages Swiss buyers to look across the border for investment opportunities.
Additionally, there has been a noticeable increase in the number of people commuting from France to work in Switzerland. This trend has grown significantly, with more than 400,000 cross-border commuters working in Switzerland by late 2024. Many of these commuters are interested in living closer to their workplace, which boosts the demand for properties near the border.
Moreover, real estate agents have reported a rise in inquiries from Swiss buyers looking to purchase second homes in France. This interest is particularly strong in the Auvergne-Rhône-Alpes region, where the potential for rental income is attractive due to the area's popularity with tourists and its growing economy.
Sources: Global Property Guide, Swissinfo.ch, Swissinfo.ch
4) Luxury chalet demand in the Alps will rise as international buyers look for exclusive vacation homes
In recent years, the demand for luxury chalets in the Alps has been on the rise, particularly among international buyers looking for exclusive vacation homes. This trend is supported by several key factors that have emerged in 2023 and 2024.
Firstly, there has been a noticeable increase in international property investments in the Alps. According to Knight Frank's 2024 Ski Property Report, a significant 60% of survey respondents anticipated a rise in Alpine property prices over the next year, highlighting strong investor interest. Additionally, Swiss resorts have consistently topped the rankings, driven by a lack of available properties and improvements in infrastructure.
Moreover, the sales of luxury chalets in the region have been increasing. For instance, Alpine property prices saw an average rise of 3% in 2024, with Courchevel 1850 experiencing a notable 9% growth rate. This indicates a robust market for luxury chalets, further fueled by the soaring prices in Swiss Alps destinations like Verbier.
Sources: World Property Journal, Croisette, DM Properties, Swiss Info
5) Property prices in Saint-Étienne will fall as younger people move to bigger cities for job opportunities
In recent years, Saint-Étienne has been experiencing a decline in its young population. This trend is particularly noticeable when compared to the regional growth in larger cities like Lyon and Grenoble, which are part of the same Auvergne-Rhône-Alpes region. These larger cities have been growing at a rate four times faster than the national average, attracting more young people.
One of the main reasons for this migration is the higher job growth in these larger cities. Lyon and Grenoble, for example, are known for their strong and diversified economic bases, especially in high-tech industries and traditional sectors like mechanical engineering and textiles. These industries are more concentrated in larger urban areas, offering better job opportunities for young professionals.
Surveys of young professionals often highlight their preference for living in larger urban areas due to the career opportunities available. The economic power and innovation hubs in cities like Lyon and Grenoble make them attractive destinations for those seeking better job prospects. This preference is reflected in the migration patterns, with many young residents leaving Saint-Étienne for these larger cities.
Real estate market analyses have shown a decrease in demand for properties in Saint-Étienne. The lower property prices in the city compared to the national average suggest a reduced interest in buying or renting properties there. This trend is further supported by migration data, which highlights an outflow of young residents from Saint-Étienne to larger cities.
Sources: Property Guides, Auvergne-Rhône-Alpes CCI, Welcome to France
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6) Co-living spaces in Lyon will become more popular among young professionals and students
Lyon's rental prices are soaring, making it tough for many to find affordable housing.
Co-living spaces are stepping in as a budget-friendly and flexible option, especially for young professionals and students flocking to Lyon for its job market and universities.
Paris and Berlin have already shown how successful co-living can be, offering a blend of affordability, community, and flexibility that appeals to the younger crowd.
In Lyon, co-living spaces are thriving with high occupancy rates, thanks to their focus on social connections and shared experiences, which resonate with those who value community.
The shift to remote work is also pushing people towards more flexible living arrangements, and co-living fits the bill perfectly, offering both flexibility and a sense of community.
Millennials and Gen Z are naturally drawn to shared living setups, valuing the social aspects and community vibe that co-living spaces emphasize.
Sources: Knight Frank, Live Colonies, The Negotiator
7) Property prices in Auvergne-Rhône-Alpes will rise moderately due to limited supply and high demand
In recent years, we've seen property prices in major cities like Lyon and Grenoble steadily rise. For example, in Lyon, the median price of an apartment reached €4,031 per square meter, while in Rhône, it was €4,331 per square meter. This trend indicates a moderate increase in property prices.
One of the main reasons for this price increase is the limited supply of new housing developments. The region faces zoning and regulatory constraints, making it difficult to build new homes. In areas like Haute-Savoie, the high demand and limited supply have pushed apartment prices to €5,477 per square meter and house prices to €4,855 per square meter.
Additionally, the region's strong job market attracts many people looking for employment opportunities, which increases migration and, consequently, the demand for housing. For instance, there were 610 English-speaking jobs available in Auvergne-Rhône-Alpes, highlighting the region's economic vitality.
Sources: Properstar, English Jobs, My French House
8) Lyon will experience increased demand for eco-friendly apartments as younger buyers prioritize sustainability
In recent years, the city of Lyon has been experiencing a noticeable shift towards eco-friendly housing options. This trend is largely driven by the younger demographic, who are increasingly prioritizing sustainability in their living choices. The Lyon-Confluence urban project is a prime example of this shift, as it focuses on developing a large area of land with minimal greenhouse gas emissions. This project includes the construction of new buildings with high environmental performance and the renovation of older buildings to improve their energy efficiency.
Moreover, there is a growing number of eco-friendly apartment developments in Lyon, which incorporate features like photovoltaic installations and district heating systems to reduce energy consumption. This aligns with the preferences of younger buyers, who are showing a strong inclination towards energy-efficient homes. Consumer surveys have consistently indicated that this demographic values the long-term benefits of sustainable living, which include both environmental responsibility and cost savings.
Government initiatives also play a crucial role in supporting this trend. The local government in Lyon actively promotes green urban development through projects like Lyon-Confluence, which has been recognized for its innovative approach to sustainability. These efforts are complemented by regional projects like BAPAURA, which supports energy renovation in public buildings, further demonstrating the commitment to sustainable building practices in the region.
Sources: Climate Chance, Skiing Property, Fedarene, Construction21
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9) Demand for senior-friendly housing will rise in the region due to an aging population
The aging population in the Auvergne-Rhône-Alpes region is driving a higher demand for senior-friendly housing options.
In 2024, the region's population was 8,042,936, with nearly half, about 48.5%, being 65 years or older. This means a significant portion of residents are looking for homes that cater to their specific needs, like easy accessibility and comfort.
The senior living industry is expected to thrive in 2025, even though it faces challenges in meeting the strong demand. Older adults are actively seeking housing options designed with their comfort in mind. The industry's ability to adapt despite rising costs and staffing issues highlights the increasing demand for senior housing.
Moreover, the National Investment Center for Seniors Housing & Care (NIC) projects an average occupancy rate of 92% for senior living facilities by the end of 2026. This suggests that more retirement communities are being developed to accommodate the growing number of elderly individuals seeking suitable living arrangements.
For those considering buying property in the region, this trend indicates a potential investment opportunity. As the demand for senior-friendly housing grows, properties that cater to this demographic could see increased value.
Understanding the needs of this aging population can provide valuable insights for potential buyers. Whether it's investing in properties with accessibility features or considering locations near healthcare facilities, there's a lot to consider.
Sources: City Population, Urbistat, Senior Housing News
10) Rental yields in smaller towns like Roanne will rise as investors look for alternatives to expensive major cities
In recent years, we've seen a noticeable shift in the real estate market, particularly in how investors are approaching property investments. As of 2023 and 2024, property prices in major cities like Lyon have experienced significant fluctuations, with a notable drop of 10.2% in the average price per square meter. This kind of volatility can make investors wary, prompting them to look for more stable and potentially lucrative opportunities elsewhere.
One of the key reasons rental yields in smaller towns like Roanne are expected to increase is the growing demand for affordable housing options. Major cities, with their dynamic economies and large student populations, have driven up the demand for affordable housing, but the high prices can be prohibitive. This has led investors to seek alternatives in smaller towns where property prices are lower, and the potential for higher rental yields is greater.
Moreover, reports have shown that investors are actively seeking higher returns in these smaller towns. The average gross rental yield in France was 4.52% in the second quarter of 2024, but towns like Roanne could offer even higher yields due to their lower property prices and increasing demand for affordable housing. This trend is further supported by demographic shifts and economic development initiatives in smaller towns, which boost local economies and attract more residents, thereby increasing the demand for housing.
Sources: Investissement Locatif, Meridian Pacific Properties, Global Property Guide
11) Grenoble’s property prices will rise significantly as its growing tech industry attracts more professionals
Grenoble's property prices are on the rise, thanks to its booming tech industry.
In January 2025, property prices in Grenoble grew by 4.40% monthly, showing a strong upward trend. The average price per square meter hit €2,747, highlighting the growing demand for housing as more people flock to the area.
With an active population of 60.36%, Grenoble boasts a strong workforce that fuels housing demand. The city has a high employment rate with 96,496 people working, indicating a vibrant job market. The tech sector is thriving, with new companies setting up shop and investing heavily in data centers, driven by the rapid growth of AI.
While specific salary figures for Grenoble aren't available, rising tech industry salaries generally attract professionals to tech-centric cities. Grenoble is no exception, with increased infrastructure investments enhancing transportation and communication systems to support tech growth.
Media often highlights Grenoble as a tech hub, which draws both professionals and investors. This reputation is bolstered by the city's strategic focus on tech, making it an attractive destination for those in the industry.
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12) Grenoble will see increased rental demand near universities due to more international students
The influx of international students in Grenoble is set to drive up demand for rental properties near universities.
In 2024, Université Grenoble Alpes had around 59,000 students, with 10,000 coming from outside France, representing 160 nationalities. This significant number of international students naturally increases the need for nearby housing.
Local real estate agencies have reported a rising demand for student housing, a trend seen in Lyon and applicable to Grenoble due to their shared regional dynamics. Students often book accommodations as soon as they receive their offer letters, highlighting the limited availability and high demand for rental properties near universities.
International students often prefer living near campus for easy access to universities and amenities. This preference, combined with the shortage of available rental properties in university areas, exacerbates the demand. The Université de Lyon's efforts to increase student accommodation underscore the ongoing shortage, further driving up demand.
Sources: Times Higher Education, Université de Lyon, University Living
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.
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