Authored by the expert who managed and guided the team behind the France Property Pack
Everything you need to know before buying real estate is included in our France Property Pack
Why is Toulouse emerging as a prime destination for property investment in 2025? Is it the robust rental market, the thriving aerospace industry, or the attractive pricing compared to other European cities? What are the key benefits 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 Toulouse'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.
1) With many international events, Toulouse offers great short-term rental opportunities
Toulouse is buzzing with international events and conferences, making it a hotspot for short-term rentals.
The annual Toulouse International Fair is a big draw, showcasing the city's knack for hosting large events. In 2023, business tourism was booming, with 4.6 million hotel nights booked, underscoring the city's appeal for international gatherings.
When these events roll into town, hotels are packed. The occupancy rate hit 81.3% during the week, showing just how in-demand accommodations are. This trend spills over into short-term rentals, which are a hit with visitors.
From August 2023 to July 2024, short-term rentals in Toulouse saw a median occupancy rate of 71%. This popularity is fueled by the steady stream of event attendees looking for places to stay.
Sources: UFI, Airbtics, La Demeure du Parc
2) Toulouse’s prime spot in southern France makes it a key business hub, boosting its real estate market
Toulouse's strategic location in southern France has made it a key player in business and trade, significantly boosting its real estate market. The city's population has been growing, with over 1.3 million people in the metropolitan area, attracting students, young professionals, and expatriates. This demographic boom has increased the demand for housing, particularly furnished rentals.
The presence of major aerospace companies like Airbus has also contributed to this trend. These companies bring in professionals from around the world, creating a need for temporary accommodations. Additionally, Toulouse is home to numerous multinational companies, which adds to its international appeal and draws more businesses and talent to the area.
The expansion of Toulouse-Blagnac Airport further enhances the city's connectivity, making it more accessible for business travelers and tourists alike. This expansion includes new terminal buildings and a 4-star hotel, which not only improves services but also supports the local economy by attracting foreign tour operators and helping local companies explore new markets.
Sources: Lodgis, Aviation24, Geste Group
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) Toulouse attracts tech professionals needing homes because it’s a major hub in Europe’s tech sector
Toulouse has become a key player in the European technology sector, drawing tech professionals who need housing. This is largely due to its vibrant ecosystem and favorable conditions for tech growth. In the past few years, Toulouse has seen a significant rise in employment rates within its tech sector, particularly in aerospace and space industries. The Aerospace Valley cluster, for example, funded 615 R&D projects worth €1.52 million in 2021, highlighting a strong focus on innovation and job creation.
The presence of major companies like Airbus, which employs 27,000 people directly and supports an additional 65,000 indirect jobs, further underscores Toulouse's importance in the aeronautics and space industry. This has naturally attracted tech professionals to the city, seeking opportunities in these thriving sectors. Additionally, Toulouse's robust startup ecosystem, with numerous incubators and accelerators like La Cantine Toulouse and the ESA BIC SUD France, provides ample support and networking opportunities for entrepreneurs and tech startups.
Government incentives also play a crucial role in attracting tech professionals to Toulouse. Programs like the Digital 113 cluster and various incubation initiatives offer essential support to local businesses, fostering a dynamic environment for innovation and development. The city's strategic location and favorable business environment make it an attractive destination for tech professionals looking to relocate.
Moreover, the influx of tech professionals has led to a rising demand for rental properties in Toulouse. The real estate market has responded with increased property values in tech-dominated areas, driven by the growing need for housing from these professionals. This trend is further supported by the expansion of coworking spaces and tech incubators, such as La Cantine Toulouse and FabLab Artilect, which provide essential resources and networking opportunities for tech workers.
Sources: Invest in Toulouse, WS Interactive, Zephalto, Invest in Toulouse
4) Toulouse’s excellent public transport makes properties near transit highly desirable
Toulouse's public transportation system is a key factor in making properties with easy access to transit more appealing. The city has a well-developed network that includes metro lines, tram systems, and even a gondola line, ensuring comprehensive coverage and high frequency of service. This extensive network allows residents to move around the city efficiently, reducing commuting times and making daily travel more convenient.
Recent expansions and upgrades, such as the construction of Metro Line C and the extension of Line B, demonstrate the city's commitment to improving public transit. These projects are expected to further enhance connectivity and increase the number of passengers served daily. As a result, properties near these transit lines are likely to see increased demand and higher property values.
Moreover, Toulouse's focus on transit-oriented development (TOD) has led to the creation of vibrant, sustainable communities around public transportation hubs. This approach not only boosts property values but also aligns with the growing public preference for homes with easy access to transit. The environmental benefits of using public transportation over personal vehicles further add to the appeal, as residents are increasingly conscious of their carbon footprint.
Sources: Toulouse Metro - Wikipedia, Toulouse Aerospace Express (TAE) - Railway Technology, Where to Live in Toulouse? | Choosing the Right Neighborhood, Non-automobile-oriented transportation facilities in Toulouse
5) Toulouse’s excellent healthcare makes it ideal for retirees and families seeking quality medical care
Toulouse's healthcare facilities are considered top-notch for several reasons. First, the Toulouse University Hospital has consistently ranked among the best hospitals in France. In 2016, it was recognized as the top hospital in the country, which speaks volumes about the quality of medical and surgical specialties available there.
The city has a significant number of healthcare professionals, with 140,000 employees and 20,000 self-employed individuals in the health sector. This represents a substantial portion of the workforce in the Occitanie region, ensuring that there are plenty of skilled professionals to provide care.
Recent investments have also played a crucial role. The European Investment Bank supported a major modernization project for the Toulouse University Hospital, with a total cost of approximately EUR 304 million. This investment aims to improve the quality of healthcare offered to patients, making the facilities even more attractive to those seeking top-tier medical care.
Moreover, Toulouse is a global health research center, home to initiatives like the Oncopole, which focuses on geroscience and healthy aging. This emphasis on specialized medical services and cutting-edge treatments further enhances the city's reputation as a healthcare hub.
Sources: Invest in Toulouse, The Connexion, European Investment Bank
Get fresh and reliable information about the market in Toulouse
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
6) Toulouse’s property market is resilient, making it a safer investment during economic downturns
Toulouse's real estate market has shown resilience during economic downturns, making it a safer investment. One key reason is the city's economic diversification. Toulouse is not just reliant on one industry; it has a strong presence in aerospace, automotive, and biotechnology sectors. This variety helps cushion the real estate market from economic shocks.
Another factor is the consistent demand for housing. Even during tough times, real estate agencies like Mercure Forbes Global Properties Toulouse have reported steady sales, particularly in rural properties. This indicates that people continue to seek homes in the area, supporting property values.
Additionally, the rental market in Toulouse remains strong, with a median occupancy rate of 71% for short-term rentals. This low vacancy rate suggests that there is a continuous demand for rental properties, which helps stabilize the market even when the economy is not doing well.
Moreover, Toulouse's status as a major hub for the aerospace industry provides economic stability. This industry presence ensures a steady flow of jobs and economic activity, which in turn supports the real estate market by maintaining demand for housing.
Sources: Groupe Mercure, Airbtics
7) Toulouse’s focus on green spaces and parks boosts residents’ quality of life
Toulouse is on a mission to make life better for its residents by focusing on green spaces and parks.
Every year, the city plants 10,000 trees with a goal of reaching over 100,000 by 2030. This isn't just about making the city look pretty; it's about creating a healthier environment for everyone. Imagine walking through neighborhoods that are not only greener but also more inviting.
The Grand Parc Garonne project is a big part of this green transformation. Spanning seven communities, it encourages people to get active with options like biking and water sports. It's all about making it easier for residents to enjoy the outdoors, which is great for both body and mind.
Research shows that urban nature can really change how people feel about their health. Just adding 10 trees to a city block can make you feel like you've got an extra $10,000 in your pocket or like you're seven years younger. That's the power of green spaces.
These efforts are not just about aesthetics; they're about enhancing the quality of life. When you live in a place that values nature, it changes your whole experience of the city. It's like having a natural retreat right outside your door.
So, if you're thinking about buying property in Toulouse, know that you're investing in a city that prioritizes a healthy, vibrant lifestyle. The commitment to green spaces is a testament to the city's dedication to its residents' well-being.
Sources: Invest in Toulouse, Frontiers in Public Health, C40 Urban Nature Declaration
8) Toulouse’s diverse neighborhoods provide various property options to suit different investor tastes
The city's diverse neighborhoods offer a range of property types, catering to different investor preferences. In the past, specifically in 2023 and 2024, Toulouse's real estate market showcased a variety of luxury properties in downtown areas. These properties were highly sought after due to their proximity to amenities like shops, services, schools, and public transportation.
Additionally, Toulouse offered a wide range of apartment options, including duplex apartments with private gardens and terraces, as well as larger apartments with multiple bedrooms and bathrooms. This variety allowed investors to choose properties that matched their specific needs and preferences.
Moreover, the development of Metro Line C improved urban mobility, connecting various neighborhoods and enhancing their accessibility. This infrastructure project supported the growth of different neighborhoods, making them more attractive to investors looking for properties with potential for appreciation.
Sources: Le Figaro Properties, Parsons, Green Acres
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.
9) Toulouse’s booming aerospace industry draws many professionals, making it easy to find renters
Toulouse is often referred to as the "Aerospace Valley" because it hosts a concentration of major aerospace companies like Airbus, Thales Alenia Space, and Safran. This makes it a central hub for the aerospace industry.
The aerospace sector in Toulouse is a significant employer, with numerous companies providing jobs and attracting talent. The presence of these companies creates a strong demand for skilled professionals, which in turn drives housing demand in the area.
In recent years, the aerospace industry in Toulouse has seen substantial growth. For example, the France aerospace titanium machining market is projected to grow significantly, driven by the demand for lightweight materials that improve fuel efficiency. This growth attracts more professionals to the region.
International professionals are drawn to Toulouse due to its reputation as the European Capital of Space. The city's blend of pioneering aerospace entities and esteemed educational institutions makes it a standout in the global aerospace narrative, further increasing the demand for housing.
Sources: AeroLeads, Straits Research, Anywaves
10) In Toulouse, eco-friendly properties are more valuable thanks to government incentives for sustainable building practices
The local government offers incentives for sustainable building practices, which can increase the value of eco-friendly properties. This is because there is a growing demand for sustainable properties, as shown in the National Association of REALTORS (NAR) 2024 Sustainability Report. The report highlights that nearly half of the respondents noted their clients expressed interest in sustainability, indicating a societal shift towards eco-conscious living.
Additionally, the same report reveals that four in ten respondents have stated that their Multiple Listing Service (MLS) now includes green data fields. This change in how residential properties are presented makes it easier for buyers to identify and value sustainable features, further boosting the appeal and value of eco-friendly homes.
Moreover, increased energy efficiency ratings are linked to higher property valuations. Over 40% of homes with green certifications spent neither more nor less time on the market, suggesting that these certifications do not hinder marketability and can lead to higher property values. This trend, observed in 2023 and 2024, continues to influence the real estate market positively.
Sources: NAR
11) Toulouse's growing population means there's always a strong demand for homes
Toulouse has been experiencing significant population growth, and by 2024, experts predicted that this trend would continue. This growth is largely due to the city's economic dynamism, quality of life, and the presence of renowned universities.
In 2023, it was reported that Toulouse welcomed 15,000 new residents annually, contributing to its rapid demographic expansion. The city's robust job market, particularly in the aerospace and digital sectors, attracts new residents, enhancing its appeal as a desirable place to live and work.
Toulouse is also recognized as one of France's fastest-growing cities, with a strong reputation for its historical heritage and strategic location. The real estate market in Toulouse is characterized by sustained demand and limited supply, particularly in central districts, which is reflected in rising property prices.
Sources: Groupe Mercure, Staxre, University of Toulouse
Don't buy the wrong property, in the wrong area of Toulouse
Buying real estate is a significant investment. Don't rely solely on your intuition. Gather the right information to make the best decision.
12) Toulouse’s location near the Pyrenees and Mediterranean makes it appealing for homebuyers seeking recreational activities
Toulouse's proximity to the Pyrenees and the Mediterranean coast offers a unique blend of recreational opportunities that attract homebuyers. In 2024, property prices in Toulouse rose steadily, partly due to the city's charm and quality of life, which include access to outdoor recreational activities.
People are increasingly interested in living near natural attractions, as seen in trends from other regions. This interest is reflected in the growth of outdoor sports and recreation businesses, which is likely mirrored in Toulouse due to its location.
Media coverage often highlights the lifestyle benefits of living near natural attractions, emphasizing Toulouse's easy access to both the sea and mountains. This coverage, along with the popularity of outdoor sports like skiing, hiking, and water sports, underscores the appeal of the region.
Sources: Groupe Mercure, Camoin Associates
13) Toulouse’s government invests in urban projects, boosting infrastructure and property values
The local government in Toulouse has been actively investing in urban development projects to improve infrastructure and property values. One of the key reasons is the increased budget allocations for urban development, such as the Toulouse Urban Project, which was launched in 2016. This project aims to guide urban development with a long-term perspective, involving collaborative strategies and a shared vision among diverse stakeholders.
Another reason is the completion of major infrastructure projects, like the new tram lines and metro extension. For instance, Alstom has been awarded a contract to deliver new low-floor trams for Toulouse, which will enhance service frequency, particularly on the airport line. Additionally, the construction of the new Line C of the Toulouse metro is expected to reduce car traffic and improve air quality by encouraging the use of public transport.
Furthermore, the rising property values in areas with recent infrastructure improvements highlight the positive impact of these investments. Despite a real estate market crisis, Toulouse is experiencing a slow recovery, with neighborhoods like Saint-Etienne and Capitole seeing significant price increases. This indicates that infrastructure improvements are contributing to the increase in property values.
Sources: Culture EC, Soletanche Bachy, Urban Transport Magazine, Groupe Mercure
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.