Is buying a property in Croix-Rousse a good investment?

Last updated on December 7, 2023

Yes, the analysis of Lyon's property market is included in our pack

If you've marveled at the artistic flair and hillside views in Croix-Rousse, Lyon, you might have looked into real estate options to secure a property in this creative neighborhood, enjoying the vibrant arts scene and bohemian lifestyle of the Canuts, the silk workers who once inhabited this historic district.

Is it a good idea though? How is the real estate market there? Are prices going up or going down? Do people make profits on their real estate investments? What about the rental demand?

We'll answer all these questions for you! When building and updating our property pack for France, our team has been researching and surveying this area. Actually, lots of customers are interested in investing there. So we thought it would be a good idea to add some information about it in our pack.

Why do property buyers like investing in Croix-Rousse?

Croix-Rousse, located in Lyon, holds a distinctive charm that makes it a highly attractive location for property buyers.

This neighborhood is unique for its rich history, vibrant community, and picturesque settings, setting it apart from other real estate markets in Lyon and beyond.

One of the most striking attributes of Croix-Rousse is its deep historical roots tied to the silk industry. Known as the "hill that works" in contrast to the "hill that prays" (Fourvière), Croix-Rousse was the center of Lyon's silk weaving industry in the 19th century. This history is still palpable in the architecture and urban layout, with its famous "traboules" (passageways) and tall buildings with large windows designed for silk weavers.

These historical elements give the area a unique character that you won't find in many other parts of Lyon, where the focus might be more on modern developments or traditional French architecture.

Croix-Rousse became particularly popular as a residential area in the late 20th century, as people began to value its unique blend of urban living and historical charm.

The area has a village-like feel despite being close to the city center, offering a sense of community that's sometimes lacking in more densely populated urban areas. Its popularity is likely to continue, as there's a growing trend of people looking to live in neighborhoods with a strong sense of identity and history.

The kind of people attracted to Croix-Rousse is diverse but tends to include those who appreciate the arts, history, and a vibrant community life.

It's popular among young professionals, artists, and families who are drawn to its lively atmosphere, weekly markets, and abundance of local shops and cafes. The area also has a number of schools, making it a practical choice for families.

However, Croix-Rousse does have some weaknesses. Due to its historical buildings and narrow streets, parking can be a challenge, which might be a consideration for those who rely on a car.

Additionally, some of the older buildings might not offer the same level of modern amenities as newer constructions in other parts of the city.

The hilltop location also means that accessibility could be an issue for some, as getting around involves navigating slopes and stairs, which might not be ideal for everyone.

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Why is Croix-Rousse a nice place to live?

Croix-Rousse is renowned for its vibrant lifestyle and rich cultural heritage.

This district, perched on a hill overlooking the city, is often referred to as "the hill that works," contrasting with the neighboring Fourvière, known as "the hill that prays." This distinction stems from Croix-Rousse's historical role as the center of Lyon's silk industry, where the canuts (silk workers) lived and worked, shaping the area's distinct identity.

The lifestyle in Croix-Rousse is characterized by a strong sense of community and a laid-back atmosphere. The area is dotted with independent shops, cafes, and restaurants, offering a diverse range of culinary experiences.

The local markets, especially the famous daily street market on Boulevard de la Croix-Rousse, are a testament to the area's vibrant community life, where locals and visitors alike gather to shop for fresh produce and artisanal products.

Croix-Rousse is also a cultural hotspot, with numerous galleries, theatres, and ateliers, reflecting its artistic and bohemian spirit. The annual "Fête des Canuts," a celebration of the neighborhood's silk-weaving heritage, is a highlight, featuring music, dance, and exhibitions. The expatriate community in Croix-Rousse is thriving, drawn by the area's unique charm and the welcoming nature of its residents.

Expats often find it easy to integrate, thanks to the numerous cultural events and the prevalence of English-speaking residents and business owners.

Living in Croix-Rousse can be relatively expensive compared to other parts of Lyon, reflecting its popularity and the quality of life it offers.

However, the cost of living varies depending on the specific location within the neighborhood and the type of housing. The area boasts a mix of historic buildings and modern apartments, catering to a range of preferences and budgets.

Safety in Croix-Rousse is generally good, with the neighborhood being considered one of the safer areas in Lyon. The community-oriented nature of the area contributes to a strong sense of security among residents.

In terms of amenities and facilities, Croix-Rousse is well-equipped. The neighborhood is home to several schools, including the Lycée Henri IV and the Ecole Maternelle et Primaire Michel Servet, catering to the educational needs of families.

Healthcare facilities are also readily available, with the Croix-Rousse Hospital being a major healthcare provider in the area. For shopping, the Centre Commercial de la Croix-Rousse offers a variety of stores and services.

The infrastructure in Croix-Rousse is well-maintained, with efficient utilities and reliable internet connectivity. The streets, although sometimes steep and narrow, add to the area's charm and are well-serviced by public utilities. Accessibility is a strong point for Croix-Rousse. The neighborhood is well-connected to the rest of Lyon, with several bus lines and a metro station (Croix-Rousse on line C) linking it to the city center and other districts.

For those traveling further afield, the Part-Dieu train station and Lyon-Saint Exupéry Airport are easily accessible via public transport or a short drive, making Croix-Rousse a convenient base for both local and international travel.

Public transportation options in Croix-Rousse are comprehensive. In addition to buses and the metro, the area is also served by the funicular railway, which offers a picturesque route to the lower parts of Lyon.

This blend of modern and traditional transportation modes underscores the unique character of Croix-Rousse, combining the charm of its historic past with the convenience of modern living.

How much does it cost to buy real estate in Croix-Rousse?

If you need a detailed and updated analysis of the prices, rents and yields, you can get our full guide about real estate investment in France.

Buying property in Croix-Rousse is an intriguing prospect, reflecting the area's unique character and its status as one of the city's most sought-after neighborhoods.

The types of residential properties available in Croix-Rousse are diverse, ranging from charming apartments in historic buildings to more modern residences.

While you won't find sprawling luxury villas common in this urban setting, the area is known for its beautiful, traditional Lyonnais buildings, which often feature apartments with high ceilings, large windows, and, in some cases, stunning views of the city.

A significant demand in Croix-Rousse is for apartments, particularly those with historical features like exposed beams and stone walls, which are reminiscent of the area's silk-weaving heritage. These properties are highly sought after due to their unique charm and the sense of history they offer.

In contrast, modern apartments, especially those with balconies or terraces, are also in demand, offering a more contemporary living experience.

The property market in Croix-Rousse is primarily characterized by resale properties, as the area is well-established and known for its historic architecture. New developments are less common, but when they do arise, they often generate significant interest due to the rarity of such projects in this historic neighborhood.

Regarding prices, properties in Croix-Rousse can vary significantly depending on factors such as size, condition, and location within the neighborhood. Prices per square meter can range from around €4,000 to over €10,000, reflecting the diversity and desirability of properties in this area.

It's important to note that these figures can fluctuate based on market conditions and specific property characteristics.

Over recent years, property values in Croix-Rousse have generally seen an upward trend, driven by the neighborhood's popularity, its cultural and historical significance, and the overall appeal of Lyon as a growing metropolitan city. This trend is likely to continue, considering the sustained interest in the area.

Looking ahead, the real estate market in Croix-Rousse could be influenced by various factors, including city planning changes and new developments. While specific upcoming projects might not be named, any new infrastructure or amenities added to the area, such as improved transportation links or cultural attractions, could further enhance property values.

Predicting the future of the real estate market in Croix-Rousse involves considering several factors. The neighborhood's enduring appeal, its cultural richness, and the limited availability of new properties suggest that demand will likely remain high, potentially leading to further increases in property values.

Factors that could indicate a potential increase in value include continued interest from both local and international buyers, the preservation and enhancement of the area's historical character, and Lyon's overall growth as a dynamic and attractive city.

Where is the best area to buy a property in Croix-Rousse?

When considering where to buy property in Croix-Rousse, it's important to understand the nuances that make different parts of this neighborhood distinct.

Croix-Rousse is split into two main sections; the 'plateau' and the 'slopes' (or 'pentes'), each offering a unique atmosphere and different types of properties.

The plateau of Croix-Rousse is known for its village-like feel. It's a bit more residential and quieter compared to the slopes. The properties here are often spacious, with some offering gardens or larger courtyards.

This area is ideal if you're looking for a more relaxed lifestyle while still being connected to the vibrant energy of Lyon. Prices in the plateau tend to be high due to the desirability of the area and the larger size of the properties.

On the other hand, the slopes of Croix-Rousse are more dynamic and bustling. This area is characterized by its historic buildings and narrow streets, lined with local shops, cafes, and art studios. The properties here are often traditional apartments, many of which retain historic features like original wooden floors and high ceilings.

The slopes are perfect for those who enjoy a lively urban atmosphere and wish to be in the heart of Croix-Rousse's rich cultural scene. Prices here can vary widely, but generally, they might be slightly lower than on the plateau, given the smaller size of the apartments and the busier environment.

Regarding up-and-coming areas within Croix-Rousse, it's worth keeping an eye on the boundaries between Croix-Rousse and neighboring districts. These areas might offer more affordable options while still providing easy access to all the amenities and charm of Croix-Rousse.

If you're considering buying a property in Croix-Rousse, areas like the Place de la Croix-Rousse, Boulevard de la Croix-Rousse, and the streets around the Gros Caillou are excellent choices. These areas offer a balanced mix of residential comfort and access to shops, markets, and public transport, making them highly desirable.

Conversely, areas closer to the edges of Croix-Rousse, particularly those near the major thoroughfares that lead in and out of Lyon, might be less advisable.

These areas can be noisier and less representative of the unique character that Croix-Rousse is known for. Additionally, some parts of the slopes can be quite steep, which might be a consideration if accessibility is a concern.

Here is a summary table to help you visualize better. If you need more detailed data and information, please check our property pack for France.

Area	Atmosphere	Property Types	Price Range	Notes
Plateau	Village-like, quieter	Spacious properties, some with gardens	Higher	More residential, relaxed lifestyle
Slopes (Pentes)	Dynamic, bustling	Traditional apartments, historic features	Varies, generally slightly lower	Vibrant urban atmosphere, culturally rich
Boundary Areas	Varies	More affordable options	Lower	Up-and-coming, good accessibility to Croix-Rousse
Edges near Major Thoroughfares	Noisier	Varies	Varies	Less desirable due to noise and less characteristic of Croix-Rousse

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Is there a strong rental demand in Croix-Rousse?

Croix-Rousse is indeed an area with strong rental demand because of its unique character, rich history, and vibrant cultural scene.

This demand encompasses both short-term and long-term rentals, each catering to different demographics and preferences.

For short-term rentals, Croix-Rousse is a popular destination for tourists and visitors who are drawn to its picturesque streets, local markets, and the panoramic views of Lyon it offers. These renters typically look for furnished apartments that provide a sense of the local lifestyle.

Properties with traditional features like exposed beams, large windows, and those that offer views of the city are particularly sought after.

Areas around the Boulevard de la Croix-Rousse and the slopes (Pentes de la Croix-Rousse) are especially popular for short-term rentals due to their proximity to local attractions and vibrant street life.

Long-term rentals in Croix-Rousse attract a mix of young professionals, students, and families. The target demographic often includes expatriates and individuals working in Lyon's growing tech and creative sectors. They typically look for modern amenities in traditional settings.

One- and two-bedroom apartments are in high demand, particularly those that are well-connected to public transport and local amenities like shops, cafes, and green spaces.

The profile of potential tenants is quite diverse. Students and young professionals might prefer smaller, more affordable units, while families and expatriates might lean towards larger apartments or those with outdoor spaces. The plateau of Croix-Rousse, with its more residential atmosphere, tends to attract families and long-term residents, while the slopes appeal to a younger, more dynamic crowd.

Properties that include certain amenities can significantly reduce vacancy rates. Features like high-speed internet, modern kitchens and bathrooms, and proximity to public transport can be particularly appealing.

Additionally, buildings with a lift are highly sought after, considering some of the older buildings in Croix-Rousse lack this feature.

Regarding potential returns on investment, properties in Croix-Rousse can be quite lucrative, particularly given the high demand. While specific numbers vary, the return on investment (ROI) for rental properties in this area can be attractive, especially for well-located and well-maintained properties.

For short-term rentals, the ROI can be higher due to the potential for higher rental rates, albeit with possibly higher turnover and management costs.

Properties that are gaining more demand, and thus could potentially offer better yields, include modernized apartments in historic buildings, properties with unique features (like terraces or city views), and those in prime locations near the heart of Croix-Rousse.

Investing in such properties could be a wise decision, as they cater to the growing desire for a blend of traditional charm and modern convenience.

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Is it easy to buy a property as foreigner in Croix-Rousse?

Before we answer the question, please know that we have an article dedicated to the experience of buying real estate as a foreigner in France.

Buying property in Croix-Rousse, Lyon, as a foreigner is generally straightforward, as France does not impose significant restrictions on foreign property buyers.

However, navigating the purchasing process and understanding the local market nuances can be challenging, especially for those unfamiliar with the French real estate system.

There are no specific regulations or restrictions targeting foreign buyers in France. This means that as a foreigner, you have the same rights to purchase property as a French citizen. The process typically involves finding a property, making an offer, signing a preliminary contract (compromis de vente), and then finalizing the purchase with the signing of the deed of sale (acte de vente) at a notary's office.

One of the primary risks associated with property investment in Croix-Rousse, as with any real estate investment, is market fluctuation. While Croix-Rousse is a sought-after area, property values can still fluctuate due to economic conditions, changes in local demand, or city planning developments.

Another risk is unforeseen costs related to maintenance or renovation, particularly in older buildings which are common in Croix-Rousse.

Common pitfalls for foreigners buying property in France include underestimating the complexity of the French property buying process, not being aware of additional costs (such as notary fees, taxes, and potentially high agent fees), and language barriers.

Unique to the French system is the "diagnostic performance énergétique" (DPE), an energy efficiency assessment that sellers must provide. Misinterpreting these assessments or overlooking their importance can lead to unexpected issues down the line.

Working with a local real estate agent or lawyer is highly recommended. They can provide invaluable assistance in navigating the complexities of the French real estate market, help with language barriers, and ensure all legal requirements are met.

A local expert will also have a better understanding of the specific market dynamics in Croix-Rousse and can guide you towards making a sound investment.

As for exit strategies, property investors in Croix-Rousse typically consider either selling the property after a period of appreciation or renting it out. The rental market in Croix-Rousse can be lucrative, offering the possibility of a steady income stream.

Selling, on the other hand, could yield a significant return on investment, especially if the property has been well-maintained or upgraded.

However, it's important to be aware of the potential capital gains tax implications for non-resident sellers.