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Where are the best places to invest in France right now? Is Paris still the top pick, or are cities like Lyon, Bordeaux, and Marseille gaining ground? What makes these locations attractive to both local and foreign investors?
We’re often asked these questions because we work directly with notaries, real estate agents, and clients who invest across the country. Our firsthand experience in these markets gives us unique insights into where the real opportunities lie. To save everyone from asking privately, we’ve written this article to share our knowledge broadly.
Our goal is to highlight the hottest markets in France and explain why they’re worth your attention in 2025.
If you have suggestions or want us to dive deeper into a specific area, let us know. You shoot an email, we answer within 24 hours.
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Asher George McInerney 🇺🇸
Founder | Property Consultant, at Carlton International
1) Montpellier is becoming a favorite for its high rental returns and growing student population
Montpellier is a hot spot for property investors due to its attractive rental yields and vibrant student community.
With rental yields ranging from 3.80% to 6.05%, Montpellier stands out among French cities, offering an average yield of 4.82%. This makes it a compelling choice for those looking to invest in real estate.
As the third most popular university city in France, Montpellier hosts nearly 82,000 students, creating a strong demand for housing. This demand, coupled with a limited supply, makes the real estate market competitive and appealing to investors.
Despite efforts to address the housing shortage, such as new student residences and initiatives like KAPS, the demand remains high. This keeps the rental market tight, with students making up a significant portion of prospective tenants.
Investors are particularly drawn to the opportunity to capitalize on the high demand for student accommodation, as the city's educational institutions continue to attract a large number of students each year.
Sources: Doorfeed, Wikipedia, AEF Montpellier
In this video, Montpellier is featured as a top investment destination due to its sunny climate, thriving student population, and strong rental yields.
2) Marseille is attracting interest with its affordable property prices and urban renewal projects
Marseille is becoming a hot spot for affordable property and exciting urban renewal projects.
In recent years, Marseille's real estate market has been on the rise, mirroring trends in other French cities. This growth is fueled by the city's increasing popularity as a tourist destination and its cultural and economic importance. Marseille offers a unique blend of history and modernity, attracting both visitors and investors.
Compared to other major French cities, Marseille's residential property prices are a bargain. For example, in January 2024, the cost per square meter in the 7th and 8th arrondissements was over 5,000 euros. This makes buying an apartment in Marseille twice as affordable as in Paris, drawing interest from both local and international buyers seeking investment opportunities.
A major draw for Marseille is the Euroméditerranée project, Europe's largest urban renewal initiative, spanning 480 hectares. This ambitious project aims to transform Marseille into a leading European city by developing infrastructure, public spaces, offices, homes, shops, hotels, and cultural venues. The revitalization of certain areas has made them more appealing to residents and investors, boosting property values.
With its affordable prices and ongoing development, Marseille is becoming a prime location for property investment. The city's charm, combined with its strategic location on the Mediterranean coast, makes it an attractive option for those looking to invest in real estate. Marseille's transformation is drawing attention from savvy investors who recognize its potential.
Sources: The Urban Developer, The Luxury Playbook, Statista
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.
3) Grenoble is attracting investors with its tech industry and high rental yields
Grenoble is a magnet for investors, and there's a good reason for it.
The city is a tech hub, boasting over 41,500 jobs in the tech industry, with giants like Apple and Oracle setting up shop alongside innovative startups. Research centers such as CEA-Leti and the Minalogic digital cluster add to its tech allure, making it a vibrant place for tech enthusiasts.
For those eyeing property, Grenoble offers attractive rental yields. Furnished apartments can yield between 4.79% and 7.19%, with some areas like Villeneuve - Village Olympique offering even higher returns at 8.89%. It's a promising spot for investors seeking solid returns.
Dubbed "France’s Silicon Valley," Grenoble's deeptech scene is a major draw, pulling in €1.2 billion in investment in 2023, tying with Munich for fourth place in Europe. The French government's €54 billion France 2030 Plan, focusing on advanced technologies, is set to further boost Grenoble's tech industry.
With its tech-driven economy and high rental yields, Grenoble is becoming a hotspot for savvy investors. The city's blend of established tech giants and dynamic startups creates a fertile ground for growth and innovation.
Investors are increasingly drawn to Grenoble, not just for its tech scene but also for the potential for lucrative property investments. The combination of a thriving tech industry and attractive rental yields makes it a compelling choice.
Sources: Sifted, Invest in Grenoble Alpes, Doorfeed
4) Angers is gaining interest for its affordable homes and growing student population
Angers is catching eyes for its affordable housing and lively student scene.
In 2023, the median house price in Angers was €315,000, marking a 6.8% rise from the previous year. Yet, it still sits well below the national average, making it a sweet spot for those hunting for budget-friendly options. The city's charm is amplified by its 25,000-strong student population, which fuels a buzzing rental market. Central Angers is particularly hot, drawing attention as one of the most desirable spots in the Loire Valley.
Angers' academic reputation is a magnet for students, which in turn cranks up the demand for housing. The city snagged the title of #1 place to live in France by L'Express magazine, thanks to its top-notch quality of life. This accolade makes it a hit with students and young professionals alike.
With a growing student base, Angers is seeing a surge in rental property demand. This trend is reshaping the city's housing landscape, making it a dynamic market for potential buyers. The influx of students not only boosts the rental market but also enhances the city's cultural and social vibe.
Angers offers a unique blend of affordability and vibrant living, making it a prime choice for property seekers. The city's appeal is not just in its prices but also in its lively atmosphere, driven by a youthful and diverse population. This combination of factors is turning Angers into a hotspot for real estate investment.
Sources: Long Term Rentals in France, FrenchEntrée
5) Toulouse is gaining interest for its aerospace industry, attracting professionals and boosting housing demand
Toulouse is buzzing with activity thanks to its booming aerospace industry.
The city has become a magnet for professionals, largely due to the resurgence of the French civil aerospace industry, which bounced back to pre-Covid levels by mid-2023. This growth is fueled by major players like Airbus, which is expanding its footprint in Toulouse.
Airbus is not just expanding; it's making waves with its new training campus, set to be Europe's largest by 2026. This move is drawing a skilled workforce to the city, enhancing Toulouse's status as a leader in aerospace innovation.
With more professionals flocking to Toulouse, housing demand is on the rise. Even though high interest rates have caused a temporary hiccup in the real estate market, property prices have stayed stable, showing that demand is still strong.
The central districts of Toulouse are particularly hot right now, with limited supply driving up interest in available properties. This makes it a prime spot for anyone looking to invest in real estate.
Sources: France - Civil Aircraft and Parts (AIR), Economy of Toulouse - Wikipedia, Real estate in Toulouse: key figures and trends in 2024, Airbus expands global training capacity with new Toulouse campus
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6) Rennes is gaining attention for its growing job market and high quality of life, boosting property values
Rennes is becoming a hotspot for property buyers, thanks to its booming job market and excellent quality of life.
The city has seen a surge in employment, driven by a diverse and robust economy. Major projects like the high-speed railway and metro line B have not only improved connectivity but also attracted numerous companies, creating a wealth of job opportunities.
With over 830 companies setting up shop in Rennes, including 500 from Brittany, the business landscape is thriving. This influx of businesses is a clear indicator of economic vitality, which in turn is likely to boost property demand and appreciation.
Government investments have played a crucial role in transforming Rennes, making it more appealing to both businesses and residents. The improved transportation links, such as the high-speed railway and the second metro line, have made commuting a breeze, further enhancing the city's allure.
Rennes is not just about work; it's about living well. The city offers a blend of modern amenities and cultural richness, making it an attractive place for families and professionals alike. This balance of work and lifestyle is a key factor in its rising property market.
As more people discover what Rennes has to offer, the demand for property is expected to continue its upward trend. The city's strategic location and ongoing development projects make it a promising investment for potential buyers.
Sources: French Entree, Rennes Business, Market Screener
7) Nantes is gaining interest for its tech industry growth and more affordable housing than Paris
Nantes is buzzing with excitement as its property demand surges thanks to a thriving tech scene.
In recent years, Nantes has become a hotspot for tech companies like Lengow, iAdvize, and Akeneo, which are growing rapidly and attracting more businesses and entrepreneurs to the city. This transformation has turned Nantes into a leading tech hub, drawing in talent and innovation from all over.
The job market in Nantes is booming, especially in the tech sector. The region, including nearby Saint-Nazaire, has seen digital tech job growth five times the national average. This influx of tech professionals is naturally boosting the demand for housing as more people move to the area for work opportunities.
One of the biggest draws for potential homeowners is that Nantes offers more affordable housing compared to Paris. As of early 2023, the average house price in Nantes was €364,300, which is quite reasonable when you consider the prices in other major French cities.
Even though house prices in Nantes have risen, there's been a slight decline recently, making it an attractive option for those looking to buy property. This affordability, combined with the city's vibrant tech scene, makes Nantes a compelling choice for property buyers.
For anyone considering a move, Nantes offers a unique blend of career opportunities and a more affordable lifestyle, making it a top choice for tech professionals and families alike.
Sources: Invest Nantes Saint-Nazaire, Invest Nantes Saint-Nazaire, Long Term Rentals in France
8) Bordeaux is booming with wine tourism and better transport links, driving property value growth
Bordeaux's real estate market is on fire, with average house prices hitting €385,000 in 2024.
One big reason for this surge is Bordeaux's thriving wine tourism. The city is a magnet for wine lovers, which boosts the local economy and drives up property demand. This is evident in the short-term rental scene, where properties are booked for an average of 274 nights a year, earning hosts about €24,000 annually in 2023.
Another factor making Bordeaux attractive is its improved transport links. The city has expanded its tramway network, including the addition of Line D, which enhances connectivity and reduces traffic congestion. This makes Bordeaux more accessible and appealing to both residents and investors.
These developments have made Bordeaux a hot spot for property buyers. The city's charm, combined with its strategic improvements, has led to rising property values over the years. Since 2015, property prices have grown by 10% annually, although the pace has slowed a bit recently.
For those considering a move or investment, Bordeaux offers a unique blend of culture, convenience, and opportunity. The city's wine tourism and transport upgrades are key drivers of its real estate boom, making it a prime location for property investment.
With its vibrant lifestyle and strategic enhancements, Bordeaux continues to attract attention from potential buyers. The city's ongoing developments ensure that it remains a desirable place to live and invest.
Sources: Long Term Rentals in France, Airbtics, Urban Transport Magazine
In this video, we can see that Bordeaux is a hub for wine tourism, has excellent transport links, and is experiencing a real estate boom.
9) Strasbourg is gaining interest for its cross-border appeal and strong rental market driven by EU institutions
Strasbourg is a hot spot for investors, thanks to its cross-border appeal and strong rental market.
In recent years, especially 2023 and 2024, rental yields in Strasbourg have been quite appealing. Furnished apartments offer yields between 3.47% and 5.50%, with some areas like the Port Autonome neighborhood reaching up to 6.16%. This means property owners can expect a healthy return on their investments.
The presence of EU institutions in Strasbourg adds to its charm. The city hosts over 90 Members of the European Parliament and several international bodies, making it a central hub for EU activities. This boosts the local economy and increases housing demand, especially for short-term rentals during EU events and conferences.
Strasbourg's closeness to the German border makes it even more attractive, drawing in a cross-border workforce and creating a dynamic economic environment. The city's infrastructure, with a low vacancy rate of 3.6%, shows the high demand for housing, driven by its strategic location and connectivity.
Investors are particularly drawn to Strasbourg because of its unique position as a European crossroads. The city’s blend of French and German influences, along with its role as a political center, makes it a vibrant place to live and work. This cultural and economic mix is a key factor in its growing real estate market.
For those considering property investment, Strasbourg offers a compelling mix of stable returns and growth potential. Its strategic location, coupled with the presence of major EU institutions, ensures a steady demand for housing, making it a wise choice for investors looking for both short-term gains and long-term stability.
Sources: AmCham EU, Doorfeed, Hurghadians Property, Knight Frank
10) Lille is a real estate hotspot with strong rental demand near Belgium and the UK
Lille is quickly becoming a real estate hotspot thanks to its strategic location near Belgium and the UK.
Many people commute across borders, which means there's a high demand for rental properties in the city. In Lille Centre, the average gross yield for furnished properties is 5.05%, highlighting this strong rental market.
Property prices are climbing, showing Lille's growing appeal. Apartments have a median price of €4,099/m², while houses are at €2,884/m². This trend suggests more people are eager to buy property here, pushing demand even higher.
Improved connectivity, like high-speed train links to major cities, makes Lille an attractive place to live. This ease of travel supports both commuting and business, further boosting real estate demand.
Lille's cultural and economic ties with Belgium and the UK make it a desirable spot for residents and investors alike. The city's vibrant atmosphere and strategic location are key factors in its real estate boom.
Sources: Properstar, DoorFeed, Interreg Europe
11) Lyon is thriving with its major business hub status and limited housing supply
Lyon's real estate market is booming, largely because it's a major business hub.
In recent years, Lyon has become a magnet for new investments and corporate relocations, boosting its economic appeal. This influx of businesses has created more job opportunities, drawing more people to the city and increasing the demand for housing.
However, the housing supply hasn't kept up. Despite efforts to build more, construction in Greater Lyon lags behind demand. The city aims for 8,000 to 9,000 new units annually, but that's not enough for the growing population. This shortage means low vacancy rates, making it tough to find a place.
Over the past decade, property prices in Lyon have surged by at least 30%. High demand for prestigious addresses and high-end properties, especially among young professionals and families, fuels this growth. Lyon's excellent public transportation adds to its allure, making it a desirable place to live and work.
With its vibrant economy and limited housing, Lyon's real estate market is a hot ticket. The city's charm and opportunities continue to attract newcomers, keeping demand high.
Sources: Agritrop, Le Figaro Properties
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12) Nice is booming with its tourism appeal and luxury property market
Nice is experiencing a real estate boom, thanks to its allure as a top tourist spot and a thriving luxury property market.
In recent years, property prices in Nice have jumped by 15%, making it one of France's priciest cities. This surge is a testament to the city's growing charm for both local and international buyers. Imagine strolling through the Promenade des Anglais, knowing that the same allure is drawing in property investors from around the globe.
The luxury market is particularly hot, with sales of properties over €2 million rising by 19.47% since 2019. This isn't just about numbers; it's about the demand for high-end living spaces that offer stunning views of the Mediterranean and the vibrant city life. Nice's reputation as a glamorous destination is a magnet for those seeking opulent homes.
Tourism is a key player in this real estate surge. Nice is often featured in travel magazines as a must-visit city, and its high hotel occupancy rates are proof of its tourism appeal. This constant influx of visitors not only boosts the luxury market but also creates a demand for short-term rentals, as tourists look for places to stay during their trips.
For those considering buying property in Nice, it's not just about owning a piece of paradise; it's about investing in a city where tourism and luxury real estate are thriving. The blend of cultural richness, stunning landscapes, and a bustling property market makes Nice a unique investment opportunity.
Whether you're drawn by the idea of a vacation home or a long-term investment, Nice's real estate market offers something for everyone. The city's charm and economic potential make it a compelling choice for property buyers.
Sources: Adrian Leeds, Pure Living Properties
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.