Authored by the expert who managed and guided the team behind the France Property Pack
Yes, the analysis of Lyon's property market is included in our pack
Why is Lyon emerging as a prime destination for property investment in 2025? Is it the city's rich cultural heritage, its strategic location in Europe, or the competitive property prices compared to other major cities? What are the key advantages for investors?
We get asked these questions all the time because we’re on the ground, working closely with developers, real estate agents, and investors like you. With so much interest in this market, we’ve decided to turn our individual answers into a comprehensive article for everyone to benefit from.
Our goal is to provide a clear case for investing in Lyon's real estate market, backed by our firsthand experience and market knowledge.
If you think we missed an important point in our content or want to know more, don’t hesitate to reach out (we answer super fast). Your feedback makes our content even stronger.
Finally, please note that this is not financial or investment advice. Investing in real estate carries inherent risks, and market conditions can change unexpectedly. We strongly encourage you to conduct thorough research and consult with a qualified financial advisor before making any investment decisions.
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1) Lyon’s nearby Rhône-Alpes region offers beautiful suburban and rural investment opportunities
The Rhône-Alpes region is a stunning area that offers great opportunities for property investment near Lyon.
In 2022, property investment volumes hit €1.10 billion, showing a stable and attractive market. This makes the region a promising spot for those eyeing long-term growth in real estate.
Known as the second most popular tourist destination in France, the Rhône-Alpes region is famous for its outdoor activities. This popularity means there's a strong demand for properties that offer natural beauty and recreational opportunities, appealing to both tourists and potential residents.
Lyon and its surrounding areas are seeing a population boom, thanks to the region's natural attractions and economic opportunities. This growth is driving up the demand for housing and commercial properties, making it a hot spot for property investments.
Investors are drawn to the region not just for its economic potential but also for its breathtaking landscapes. The combination of natural beauty and economic growth makes it a unique investment opportunity.
Whether you're looking for a serene rural retreat or a vibrant suburban community, the Rhône-Alpes region offers a variety of options that cater to different tastes and investment goals.
Sources: Knight Frank Research, France Guide, France.fr
2) Lyon's diverse industries fuel economic growth, ensuring stable housing demand
Lyon is booming economically, making it a prime spot for property investment.
With over 175,000 companies and more than 650,000 private sector jobs, Lyon stands as a major economic hub in France. The city’s entrepreneurial spirit is evident with 31,830 new companies launched in 2022, highlighting its dynamic business environment.
Lyon's economy is not just about numbers; it's about diversity. The city thrives with industries like technology, finance, and healthcare, attracting both big corporations and innovative startups. This mix ensures that Lyon stays resilient and adaptable, keeping the housing market steady.
People are flocking to Lyon, drawn by its economic opportunities and vibrant lifestyle. The metropolitan area, home to over 3 million residents, continues to grow, naturally boosting the demand for homes.
Urbanization trends are also at play here. As more people move to cities for work and lifestyle, Lyon's housing market benefits from this shift, making it a smart choice for property buyers.
Investing in Lyon means tapping into a city with a strong, diverse economy and a growing population, ensuring a stable demand for housing.
Sources: Only Lyon Business, ESPON SPIMA Lyon Fact Sheet
We have made this infographic to give you a quick and clear snapshot of the property market in France. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
3) Lyon’s prime location as a transport hub boosts property value with better connectivity
Lyon's prime spot as a major European transport hub is a big boost for property values, thanks to enhanced connectivity.
With the TGV, you can zip from Lyon to Paris in under two hours, making it a breeze to reach other key European cities. This high-speed rail network is a game-changer for property values in Lyon. Plus, the upcoming Turin-Lyon railway will link French and Italian networks, promising even more connectivity and potential property value hikes.
Lyon-Saint Exupéry Airport is another key player, offering over 130 direct destinations. This increased passenger traffic makes business travel and logistics a cinch, especially for the region's pharmaceutical and express freight sectors. The airport's impact is clear, with 40,000 tonnes of air cargo handled in September 2022, marking a 7% growth from 2021.
Infrastructure investments are crucial too. Projects like the Turin-Lyon railway are set to make freight and passenger movement smoother, boosting the city's allure and property values. Well-connected cities with efficient public transport often see rising property prices, and Lyon is riding this wave.
These transport upgrades are not just about getting from A to B faster; they’re about making Lyon a more attractive place to live and work. The city's strategic location and improved connectivity are key drivers of its real estate market, drawing in both businesses and residents.
As Lyon continues to enhance its transport links, the city is becoming a hotspot for property investment. The ongoing improvements in infrastructure are transforming Lyon into a more connected and appealing city, making it a prime choice for those looking to invest in property.
Sources: Rail Europe, Vinci Airports Newsroom, MPE Chicago, Time Out
4) Waterfront properties in Lyon are more valuable thanks to the scenic views of the Rhône River
The Rhône River's scenic views significantly boost the value of waterfront properties in Lyon.
In 2023, the 6th and 2nd arrondissements, which include these picturesque waterfront areas, recorded the highest prices for residential real estate in the city, with an average price per square meter of close to 6,000 euros. This clearly shows a strong preference for properties with river views.
Properties along the Rhône River tend to command premium prices compared to non-waterfront properties. Real estate agents often highlight the desirability of riverfront properties, emphasizing their appeal in listings.
While specific studies on the Rhône River in Lyon aren't cited here, it's well-known that scenic views can significantly increase property values. Historical data shows that property appreciation rates in riverfront neighborhoods like Vieux Lyon and La Croix-Rousse have been consistently higher than in other areas of Lyon.
In these central districts, the allure of the river is undeniable, making them some of the most sought-after locations in the city. The combination of stunning views and prime location makes these properties highly desirable.
Whether you're looking for an investment or a place to call home, the Rhône River's charm and the consistent demand for waterfront properties make it a compelling choice.
Source: Statista
5) Lyon’s strong local governance and planning policies support sustainable property market growth
Lyon is a city that truly knows how to manage itself well.
With its high rankings in governance and transparency indices like the Open Budget Index, Lyon demonstrates effective governance practices that are essential for sustainable growth. The city's approach to urban development is both consistent and forward-thinking, aligning with sustainability goals. Take the Lyon-Confluence urban project, for instance. It's a bold initiative to expand the city center while keeping greenhouse gas emissions low. This project is all about building energy-efficient structures and developing a smart grid, which is a great example of sustainable urban planning.
When it comes to property values, Lyon has a track record of stability and growth. This is largely due to the city's ongoing investment in public infrastructure and its robust economic performance. These factors are crucial for maintaining a sustainable property market. The city's commitment to public transportation is another feather in its cap. With over €1 billion earmarked for improvements, Lyon has significantly enhanced its public transport services. This investment not only supports sustainable mobility but also reduces the need for personal vehicles, contributing to the city's overall sustainability.
So, if you're considering buying property in Lyon, you're looking at a city with a strong foundation for sustainable growth. The local governance and planning policies are not just about maintaining the status quo; they're about ensuring that the city continues to thrive in a sustainable way. This makes Lyon a promising place for property investment, with a focus on long-term growth and sustainability.
Sources: Climate Chance, Railway Pro, World's Best Cities
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6) Lyon’s Festival of Lights attracts global visitors, boosting your short-term rental income potential
The annual Festival of Lights in Lyon is a huge draw for international visitors, boosting short-term rental income potential.
During the 2024 festival, hotel occupancy rates surged, and the Tourist Office Pavilion saw a 25% increase in visitors. Lyon City Card sales for four-day stays jumped by 73%, showing that people are staying longer, which is great news for local accommodations.
Vacation rental prices in Lyon tell the same story. During the festival in December 2024, average prices hit €276 per night, compared to just €195 in late October to early November. This price hike shows just how high the demand is for short-term rentals during the festival.
The festival pulls in over two million visitors each year, with many coming from abroad. This influx means strong demand for accommodations, making short-term rentals a smart choice for property owners looking to cash in.
Lyon's short-term rental market is thriving, with a median occupancy rate of 73%. This highlights the profitability of renting out properties during the festival.
Sources: Hospitality On, Holidu, Airbtics, Visiter Lyon
7) Lyon’s booming tech scene draws young professionals looking for modern homes
Lyon's tech and startup scene is a major draw for young professionals, thanks to its rapid growth and substantial investments.
In recent years, venture capital investment in Lyon's tech sector has exceeded €1 billion, highlighting the city's dynamic tech landscape. This influx of funds has led to the emergence of over 1,000 startups in the digital and tech sectors, creating a lively ecosystem that attracts ambitious individuals.
Lyon boasts a highly educated workforce, with nearly 20% of its population holding degrees in technology-related fields. This includes a significant number of software engineers skilled in popular programming languages like Java, JavaScript, and Python, making Lyon a magnet for tech companies and professionals.
Neighborhoods like Lyon Confluence are experiencing rising property prices, a sign of the high demand for modern living spaces. The growth of coworking spaces and innovation hubs, such as H7, supports this trend by offering flexible work environments that appeal to tech workers.
These developments have led to an increased demand for rental properties in areas favored by tech professionals. The city's vibrant tech scene and modern amenities make it an attractive place for young professionals seeking a dynamic lifestyle.
With its thriving tech ecosystem and appealing living conditions, Lyon continues to draw in young talent looking for opportunities in the tech industry.
Sources: Only Lyon Business, Hero Hunt, Flydesk
8) Lyon’s food scene draws tourists, making it easy to rent out your property short-term
Lyon is a food lover's paradise, drawing tourists from all over the world.
In 2023, tourists spent over $16.5 billion in Lyon, making it a top spot for international traveler spending. This shows how much people are willing to invest in experiencing Lyon's culinary delights. The city's reputation as a gastronomic capital is not just a title; it's a major economic driver.
Lyon's dining scene is impressive, with numerous Michelin-starred restaurants adding to its charm. In 2024, two new restaurants earned their first Michelin star, further boosting the city's status. This recognition draws even more visitors eager to taste the best of Lyon's cuisine.
The demand for short-term stays in Lyon is high, with hotel and residence occupancy rates at 68.5%. Tourists are eager to immerse themselves in the city's vibrant food culture. This trend is supported by glowing reviews of food tours and culinary experiences, making Lyon a must-visit for food enthusiasts.
Insider tip: Lyon's food scene isn't just about high-end dining. The city is famous for its "bouchons," traditional eateries where you can enjoy authentic Lyonnaise dishes. These spots offer a taste of local culture and are a hit with both tourists and locals.
For those considering property investment, Lyon's thriving tourism and culinary scene offer promising short-term rental opportunities. The city's ability to attract food lovers from around the globe ensures a steady stream of visitors looking for unique accommodations.
Sources: Le Bonbon, Only Lyon, World's Best Cities, Radisson Hotels
We made this infographic to show you how property prices in France compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
9) Lyon’s historic buildings provide unique opportunities for renovation and restoration investments
Lyon's historical architecture is a goldmine for renovation and restoration investments.
In areas like Vieux Lyon and La Croix-Rousse, property values are soaring thanks to their unique blend of historical charm and modern amenities. These districts have become hot spots for both local and international buyers, especially noticeable in 2023 and 2024. The allure of these areas makes them prime targets for savvy investors.
The city of Lyon sweetens the deal with government incentives for restoring historical properties. Take the Grand Hôtel-Dieu, an 18th-century gem, as an example. With government backing, this project not only preserves the past but also adapts to modern needs, highlighting Lyon's dedication to its architectural heritage.
Investors can also look to successful projects like the Lyon Confluence area, which prove that retrofitting historic buildings can be both profitable and sustainable. These initiatives show that you can protect heritage while boosting energy efficiency, making them a win-win for those interested in sustainable investments.
For those considering a move, Lyon's historical districts offer more than just a place to live; they provide a chance to be part of a living history. The city's commitment to preserving its past while embracing the future makes it a unique investment landscape.
With the right approach, investing in Lyon's historical architecture isn't just about owning a piece of history; it's about securing a future in a city that values its roots. Opportunities abound for those ready to dive into this vibrant market.
Sources: Lyon France, ASEAN UP, City Changers
10) Lyon's top universities mean there's always a need for student housing
Lyon's top universities, like Claude Bernard University and Centrale Lyon, attract a large number of students, creating a bustling academic environment.
With over 41,000 students enrolled at Claude Bernard University alone in the 2022/23 academic year, the city sees a constant influx of young people looking for places to live. This surge in student numbers naturally leads to a high demand for housing.
The student housing market in Lyon is thriving, with more than 1,200 options available. However, the demand is so intense that vacancy rates remain low, making it a competitive market for student accommodations.
Students prefer to live near their universities for easy access to classes and resources, which keeps the demand for nearby housing high. This preference, coupled with a shortage of available student housing, highlights the ongoing need for more accommodations in the area.
Living close to campus is not just about convenience; it’s about being part of the vibrant student community. This sense of belonging further drives the demand for housing near these prestigious institutions.
For anyone considering investing in property in Lyon, understanding this dynamic can be crucial. The constant demand for student housing offers a promising opportunity for potential buyers.
Sources: Statista, HousingAnywhere, University Living
11) With Lyon’s great public transport, homes in well-connected areas are in high demand
Lyon's public transportation system is a major draw for property buyers in well-connected areas.
With new tram lines like T9 and T10 set to roll out by 2026, Lyon is investing heavily in its transit network. These lines are expected to carry thousands of passengers daily, making the system not just efficient but also a big hit with residents. Imagine hopping on a tram and reaching your destination without the hassle of traffic!
Property values are climbing in areas with metro or tram access, thanks to the expansion and modernization of the transit network. The T9 line, for instance, is not just about better connectivity; it's also about urban renewal. This means spruced-up public spaces and living environments, which naturally attract buyers who love convenience and accessibility.
The government is putting its money where its mouth is, with a €290 million budget for the T9 line. This shows a strong commitment to a reliable and efficient network, making properties in these areas even more appealing. Who wouldn't want a dependable mode of transport right at their doorstep?
In neighborhoods with good public transport, car ownership is lower. This highlights the convenience and reliability of Lyon's system. Residents often choose public transit over personal vehicles, leading to a more sustainable and less congested urban environment. It's a win-win for everyone!
Sources: Lebonbon, Urban Transport Magazine, Sustainable Bus
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12) Lyon’s emphasis on green spaces boosts both quality of life and property appeal
Lyon's commitment to green spaces significantly boosts property appeal and quality of life.
In Lyon, the Local Urbanism and Housing Plan (PLU-H) ensures that new developments must include a certain amount of green space. This policy not only beautifies the city but also makes properties more valuable. People are willing to pay more for homes near parks, appreciating the blend of urban living with nature.
Take Dublin, for example. Research there shows that homes near parks can see a notable increase in value. A 10% increase in park space within 2km of a home can lead to a 5.5% rise in property prices. This trend highlights how much people cherish living close to nature, enjoying benefits like better mental and physical health.
Green spaces also give a boost to local businesses by drawing more foot traffic. In Paris, pedestrian-friendly projects have breathed new life into neighborhoods. Lyon's Canopy Plan is part of this urban planning trend, aiming to sustainably transform the cityscape by planting more trees.
These initiatives are not just about aesthetics; they are about creating vibrant, livable communities. Green spaces are becoming a central focus in urban development, making cities more attractive to potential property buyers.
For those considering buying property in Lyon, the city's dedication to green spaces is a major plus. Living near parks offers a lifestyle that combines urban convenience with natural beauty, a combination that is increasingly sought after.
Sources: Interlace Hub, ESRI, World's Best Cities, Paysalia
13) Lyon’s focus on sustainable development boosts the long-term value of eco-friendly properties
Lyon's commitment to sustainable urban development is making eco-friendly properties more valuable.
When a city like Lyon invests in green infrastructure, such as tree-lined streets and energy-efficient buildings, it creates a more attractive and livable environment. This is evident in the Lyon-Confluence urban project, where sustainable features have significantly boosted local property values.
There's a growing demand for eco-friendly homes as more people prefer sustainable living. This demand naturally drives up property values. In Lyon, government incentives, like those in the Climate, Air and Energy Plan, encourage sustainable building practices, further enhancing property values.
Energy-efficient properties offer lower utility costs, making them more appealing to buyers and renters. This appeal translates into higher rental yields and increased property values. Lyon's focus on renewable energy projects, such as photovoltaic installations, supports this by reducing utility costs and boosting property values.
In Lyon, the city's commitment to sustainability is not just about aesthetics; it's about creating a community where people want to live. This commitment enhances the long-term value of properties, making them a smart investment.
As more cities follow Lyon's lead, the trend towards sustainable urban development is likely to continue, further increasing the value of eco-friendly properties.
Sources: Climate Chance, Recon John, Net Zero Cities
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.