Authored by the expert who managed and guided the team behind the France Property Pack
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What will happen in Lyon’s real estate market? Will prices go up or down? Is Lyon still a hotspot for foreign investors? How is France’s government impacting real estate policies and taxes in 2025?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with notaries, real estate agents, and clients who buy properties in Lyon, we’ve gained firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.
Our goal is simple: 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.
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1) Short-term rental profits in Lyon will drop due to stricter rental rules
In 2025, Lyon will enforce new rules for short-term rentals, requiring owners to register their properties as primary residences.
This means more paperwork and fewer properties available for short-term rental, which could cut into profits. The city aims to control the market, but for investors, it’s a headache.
On top of that, the tax break for furnished tourist rentals has dropped from 71% to 50%, with a cap of €77,700. This change slashes financial perks, making short-term rentals less appealing.
If you don’t follow these rules, you could face hefty fines. Penalties can reach up to €10,000 for not registering and up to €20,000 for false declarations, adding financial stress.
These regulations are part of a broader effort to manage housing in Lyon, but they also mean tighter margins for property investors. The city is trying to balance tourism with local housing needs.
For those considering investing in Lyon, it’s crucial to weigh these factors. Stricter rental regulations will impact profitability, so understanding the local market is key.
Sources: Service Public, Short Term Rentalz
2) Foreign investment in Lyon will grow as international buyers look for stable European markets
Lyon is quickly becoming a prime spot for foreign investment.
In recent months, property prices in Lyon have been climbing, with the average cost per square meter hitting around €5,099 by June 2023. This uptick signals a growing demand, drawing in international buyers who are on the lookout for stable investments. The city's appeal is further boosted by its vibrant economic environment. In 2023, France saw 1,815 foreign investment decisions, which helped create or maintain 59,000 jobs, underscoring a robust economy that investors find attractive.
The French government is also playing its part by rolling out measures to make investing easier. They've introduced a bill to enhance France’s financial allure, simplifying the process for international buyers eager to invest in regions like Lyon. This proactive approach is a big plus for those considering putting their money into the area.
Lyon's transportation infrastructure is another feather in its cap. The city recently launched its 6th tram line and is pouring 1.2 billion euros into public transport improvements. These developments make Lyon more accessible and appealing, not just for businesses but for residents too, adding to its investment charm.
With these factors in play, it's no wonder that Lyon is catching the eye of foreign investors. The combination of rising property values, a supportive government, and improved infrastructure makes it a compelling choice for those seeking a stable European market.
Sources: Tranio, Bilan Invest 2023, Urban Transport Magazine
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 property prices will rise moderately as urban renewal projects make the city more attractive
In recent years, Lyon's real estate market has been on a steady rise. This trend is largely due to the city's economic growth, population increase, and its growing reputation as a desirable place to live and work. In 2024, the market continued to show strong growth, reflecting a healthy and dynamic environment for real estate.
One of the key factors contributing to this trend is the significant investment in urban renewal projects. The Lyon-Confluence Urban Project, for example, is a major development that aims to transform 150 hectares of land by 2030. This project focuses on creating energy-efficient buildings and enhancing local renewable energy production, which not only improves the city's infrastructure but also makes it more attractive to potential residents.
Additionally, the introduction of new tram lines, such as T9 and T10, starting in 2026, is set to improve connectivity and accessibility across the city. These developments are expected to make certain areas more desirable, potentially increasing property values as a result. The T10 line, in particular, will support the redevelopment of neighborhoods like Vénissieux and Saint-Fons, which are part of the 'New National Urban Renewal Programme'.
Population growth has also played a role in driving demand for housing. In 2024, Lyon's metro area population reached 1,774,000, marking a 0.74% increase from the previous year. This growth is fueled by Lyon's status as an economic and cultural hub, attracting a diverse range of residents, including young professionals, students, and families. The city's focus on sectors like technology and biotech, along with its cultural and educational institutions, continues to draw people in, further boosting the demand for housing.
Sources: Climate Chance, Macrotrends, Sustainable Bus
4) Presqu'île property prices will stay stable because of its central location and historical importance
The Presqu'île area in Lyon is a hotspot for property buyers due to its central location and rich history.
In 2023 and 2024, property demand in Presqu'île stayed high thanks to its excellent transport links and cultural attractions. This demand keeps prices on par with Lyon's prestigious 6th district. The area's historical charm and cultural landmarks draw tourists, which in turn boosts property interest and keeps values stable.
Tourist traffic not only makes the area more desirable but also helps maintain property values. The Heritage Code and local urbanism plan in Lyon use regulatory tools to protect and enhance historical sites, including Presqu'île. These rules limit new developments that might disrupt the district's historical character, thus preserving property values.
Moreover, the scarcity of properties in historical districts like Presqu'île leads to stable prices. High demand for central locations and regulatory constraints on new developments add to this scarcity. Real estate market analyses show that areas with strong cultural and historical significance tend to maintain stable or even rising property values over time.
Insider knowledge suggests that the Presqu'île's central location and historical significance make it a resilient market. The area's unique blend of history and modern amenities continues to attract both locals and international buyers, ensuring a steady demand.
With its vibrant cultural scene and strategic location, Presqu'île remains a prime choice for property investment. The area's enduring appeal is a testament to its ability to balance historical preservation with modern living, making it a stable and attractive market for potential buyers.
Sources: BNP Paribas Economic Research, Lyon UNESCO Document, Le Figaro Properties, UNESCO World Heritage
5) Rents in Gerland will rise as tech companies bring more workers to the area
The Gerland district in Lyon is poised to see a rise in rents, largely due to the influx of tech companies and their employees. Over the past few years, the digital industry in Lyon has experienced significant growth, with a 23% increase in jobs between 2015 and 2019. This growth indicates a strong demand for housing and rental properties as more tech professionals move to the area.
In 2023 and 2024, the Gerland district underwent significant transformations, with new office spaces being developed or leased by tech companies. For example, emlyon business school moved its campus to Gerland, highlighting the area's growing appeal to educational and professional institutions. This development is a clear sign that the district is becoming a hub for tech professionals and businesses.
Additionally, the lifestyle and amenities available in Gerland, such as green spaces and a variety of dining options, are attracting tech employees. This appeal, combined with improved public transportation and infrastructure, makes Gerland an attractive location for tech professionals, further driving up demand for rental properties.
Sources: ONLYLYON Business, emlyon Business School, Urban Sejour
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6) Rents in the Confluence area will rise because of its modern amenities and prime location
The Confluence area in Lyon is poised for a rent increase due to its modern amenities and desirable location. This area is part of a significant urban renewal project, which has seen the development of high environmental performance buildings and the retrofitting of heritage structures. By the summer of 2022, 600,000 square meters of new buildings were completed, enhancing the area's appeal.
Lyon's population has been steadily growing, with a metro area population of 1,774,000 in 2024, reflecting a 0.74% increase from 2023. This population growth indicates a rising demand for housing, particularly in attractive areas like Confluence. The area's modern infrastructure, including energy, transport, and information technologies, further fuels this demand.
The influx of businesses and startups, particularly in the green tech sector, has made Confluence a hub for innovation. With a €54 million budget dedicated to environmental technologies, the area attracts talent and investment, increasing its desirability. Media coverage often highlights Confluence as a trendy neighborhood, reinforcing its appeal.
Sources: CityChangers, Macrotrends, Doorfeed
7) More foreign buyers will seek heritage properties in the city's historical districts
Lyon is becoming a magnet for cultural and heritage tourism, drawing in more foreign buyers interested in its rich history.
With more international flights and better connectivity, it's now easier than ever for foreign investors to explore Lyon's charm and consider investing in its historical districts.
Foreign investment in French real estate is on the rise, and Lyon is capturing a significant share of this interest, especially from those who appreciate heritage properties.
The French government is sweetening the deal with incentives like tax breaks for preserving heritage properties, making these investments even more appealing to international buyers.
These incentives not only help preserve Lyon's historical charm but also boost its attractiveness to foreign investors looking for unique properties with a story.
As more people discover Lyon's historical allure, the city's historical districts are poised to see increased foreign investment, particularly from those drawn to its cultural heritage.
Sources: ASEAN UP, Agence Etoile, World's Best Cities
8) Green building tax incentives will increase sustainable housing construction in Lyon
Tax incentives for green buildings are set to significantly boost the construction of sustainable housing in Lyon. In the past, Lyon Métropole allocated €30 million to support energy refurbishment, which laid the groundwork for future developments. This financial backing has been crucial in encouraging both public and private sectors to invest in sustainable housing projects.
The introduction of the "Green Industry Tax Credit" in 2024 further incentivized developers by promoting green industrial investments. This financial incentive has made it more attractive for developers to incorporate sustainable practices, as it helps offset the initial costs associated with green building technologies.
Moreover, the Lyon-Confluence urban project has demonstrated the potential of sustainable housing, with plans to construct 500,000 m² of high-performance buildings. This project not only showcases the feasibility of green construction but also highlights the economic and environmental benefits, such as reduced energy consumption and lower carbon emissions.
Sources: Climate Chance, BCG, UNEP CCC
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) City center yields will drop slightly as property prices outpace rent growth
Property prices in Lyon's city center are climbing, with a projected increase of 3% to 6% by 2025.
Lyon's charm as a cultural and gastronomic hotspot, along with its strong economy, is drawing in both tourists and new residents. This influx is pushing up property prices, but rental prices aren't keeping up.
Even though there's a strong demand for smaller homes, the limited supply is causing property prices to rise faster than rents. The lack of available land for new buildings is keeping the supply tight, which supports the ongoing price hikes.
In Lyon, the average gross rental yield is already lower than in cities like Nice and Toulouse. As property prices continue to outpace rent increases, rental yields are expected to dip slightly.
Rental yields are calculated by dividing the annual rental income by the property's purchase price. So, when property prices rise faster than rents, the yield naturally decreases.
For those considering buying property in Lyon, it's important to note that while the city center is thriving, yields might not be as high as in other French cities.
Sources: Your Host Helper, Global Property Guide
10) Rental yields in Lyon will stay stable due to steady demand from students and young professionals
Lyon's rental market is thriving thanks to a steady influx of students and young professionals.
In 2024, the city was home to a bustling student community of 175,000 individuals, including 23,000 international students. This vibrant student population keeps the rental market buzzing, as they all need places to stay while hitting the books at university.
But it's not just students driving the demand. Lyon's reputation as a business hub attracts a wave of young professionals. With multinational companies setting up shop here, the city draws talent from across France and beyond. These professionals are on the lookout for convenient housing options near their workplaces, adding to the rental demand.
Over the years, Lyon has enjoyed stable rental yields, a trend that continues today. This stability is largely thanks to the unyielding demand from both students and young professionals, which keeps vacancy rates low. The city's economic vitality and cultural charm make it a magnet for those seeking a vibrant place to live.
For anyone considering investing in property, Lyon offers a promising landscape. The combination of a strong job market and a thriving student scene ensures a consistent demand for rentals, making it a smart choice for potential buyers.
Sources: Wikipedia, International Journal Corner
11) Property prices on the outskirts will drop slightly as people favor central areas
In Lyon, more people are choosing to live in the city center due to recent urban planning efforts.
The city's focus on enhancing the historic center in 2023 and 2024 has made these areas more attractive. By prioritizing the protection of cultural and natural heritage, Lyon has turned its central locations into hotspots for potential homeowners.
Urban living is on the rise, and the Lyon-Confluence project is a prime example. This initiative emphasizes sustainable urban development, featuring energy-efficient buildings and revamped neighborhoods, making the heart of Lyon a magnet for those seeking a modern, eco-friendly lifestyle.
Transportation upgrades are another draw. The Lyon-Confluence project has introduced smart grids and electric mobility services, improving access to central areas and boosting their desirability.
These changes are causing a shift in property preferences. As central locations become more appealing, the outskirts of the city are seeing a slight decline in prices, with more people opting for the convenience and vibrancy of urban living.
For those considering a move, Lyon's central areas offer a blend of history, modernity, and sustainability, making them a compelling choice for future homeowners.
Sources: Climate Chance, UNESCO
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12) Demand for affordable rentals will rise as the student population in the city grows
The city's growing student population is driving demand for affordable rental properties.
Lyon is buzzing with students, and in 2023, 219,542 higher education students were enrolled in its universities. This number is climbing, with Lyon College seeing a 13.5% jump in enrollment in 2024, bringing their headcount to 666 students.
With more students, there's naturally a bigger need for housing. The Université de Lyon is on it, having quadrupled the number of social housing units for students since 2012. This shows a clear effort to meet the rising demand.
Despite these efforts, there's still a buzz about student housing shortages in the city. The Université de Lyon, teaming up with local partners, is pushing initiatives to expand student accommodation, highlighting the need for more affordable options.
For anyone considering buying property here, this growing student population means a steady demand for rentals. It's a chance to tap into a market that's only getting bigger.
Sources: Lyon College News, Université de Lyon
13) Demand for accessible housing in Lyon will grow as the population ages
The aging population in Lyon is a significant trend that has been observed over the past few years. As more people enter their senior years, the demand for housing that meets their specific needs is expected to rise.
One of the key factors driving this demand is the prevalence of mobility issues among the elderly. In Lyon, a substantial portion of the population using public transport faces mobility challenges, highlighting the need for homes that are easily accessible. This includes features like elevators and single-story layouts, which are crucial for those with limited mobility.
Surveys have shown that older adults prioritize age-friendly housing features such as handrails, grab bars, and raised toilet seats. These features help maintain independence and safety, making them essential in the design of new housing or the modification of existing homes. Additionally, government initiatives in Lyon have already started addressing these needs by investing in renovations that incorporate such features.
Sources: Urban Mobility Observatory, AARP, NIC MAP Vision, PubMed
14) Rental yields in suburban areas will rise as more people look for affordable living options
In recent years, we've seen a noticeable shift in housing preferences, particularly in Lyon. As property prices in central Lyon experienced a slight decrease in early 2025, many residents began looking for more affordable living options in suburban areas. This trend is largely driven by the need for larger and more affordable living spaces, which suburban areas can offer.
Improved transportation links between Lyon and its suburbs have made these areas more accessible, further enhancing their appeal. This infrastructure development supports the growth of suburban rental markets, making it easier for people to commute while enjoying the benefits of suburban living. Additionally, post-pandemic surveys have shown a preference for larger living spaces, aligning with the spacious accommodations available in the suburbs.
Government incentives for suburban development, although not specific to Lyon, generally encourage investment in rental properties, boosting the attractiveness of these areas. Comparative analyses of rental yields reveal that suburban areas in Lyon offer competitive returns, with some neighborhoods providing higher yields than the city average. This makes suburban areas attractive for rental investments.
Sources: DoorFeed Insights on Lyon, TenantCloud Real Estate Trends, Britannica on France Population Distribution
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.
15) Rental yields in Lyon will rise as rental demand exceeds supply
Rental yields in Lyon are climbing, moving from 3.8% in 2023 to 4.5% in 2025.
One big reason for this is the influx of students into Lyon's universities. With more students arriving for their studies, the demand for rental housing has shot up, giving landlords the chance to increase rents and see better returns.
Adding to the mix, new housing developments in Lyon are scarce. This scarcity is due to strict planning laws and high construction costs, which have kept the supply of new housing tight and pushed rental prices higher.
For those considering buying property in Lyon, it's worth noting that the rental market is competitive. The limited availability of rental properties means that demand often outpaces supply, making it a landlord's market.
Investors are finding Lyon attractive because rental yields are expected to keep rising. As the city continues to draw in students and professionals, the pressure on the rental market is unlikely to ease anytime soon.
In this environment, property owners can expect solid returns as the demand for rental properties remains strong and supply struggles to keep up.
Sources: UCLG, Global Property Guide
16) Property prices in Lyon will keep rising due to low supply and high demand
In recent years, Lyon has seen a significant increase in demand for housing, driven by factors such as economic growth and job opportunities. This has made the city an attractive place to live, further boosting the demand for residential properties. As a result, even though there was a slight dip in property prices in 2023, historical trends suggest that prices can rebound, indicating a potential for continued growth in the future.
The limited availability of land for new developments in Lyon is a critical factor contributing to the rising property prices. In 2023, only two new homes were sold, highlighting the scarcity of new constructions. This lack of new housing exacerbates the existing shortage, making it difficult for supply to meet the high demand. Additionally, local government policies that may restrict new housing developments further limit the supply, putting upward pressure on prices.
Moreover, the rental market in Lyon is experiencing low vacancy rates, with supply far below demand. This tight rental market creates tension and makes it challenging for people to find housing, particularly for small-scale accommodations. The high demand for rental properties, coupled with the limited supply, contributes to the overall increase in residential property prices.
Sources: Lebonbon, YourHostHelper
17) Demand for smaller living spaces in Lyon will grow as single-person households increase
In recent years, Lyon has seen a noticeable increase in single-person households. By 2021, these households made up 51.6% of all households in the city. This trend is partly due to the rise in single female and male households, which grew significantly from 2015 to 2021.
The city attracts many students and young professionals, with 150,000 students arriving in 2018 alone. This influx creates a demand for smaller, more affordable living spaces, as these groups often prefer compact accommodations.
Additionally, the revitalization of public spaces in Lyon has made city living more appealing. Urban renewal projects have improved the quality of life, encouraging more people to live in the city center, where smaller living spaces are more common.
Sources: INSEE, Sup de Pub, Planum
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.