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What will happen in Toulouse’s real estate market? Will prices go up or down? Is Toulouse 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 Toulouse, 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.
1) City center property prices will stay stable because of its historical importance and limited space for new builds
The city center of Toulouse is known for its historical significance, which plays a crucial role in maintaining stable property prices. This is largely due to the Malraux Law, a regulation introduced in 1962 to preserve France's architectural heritage. This law restricts new construction in historic districts, ensuring that any new developments are compatible with the existing historical fabric. As a result, the supply of new properties is limited, which helps stabilize property prices.
Additionally, there is a strong demand for properties in historically significant areas of Toulouse, such as Capitole, Saint-Etienne, and Saint-Georges. These neighborhoods are highly sought after, with prices ranging from €5,000 to €5,530 per square meter. The demand is driven by the historical significance and aesthetic appeal of these areas, which attracts buyers willing to pay a premium for properties with historical value.
Moreover, the trend towards urbanization favors city center living, as people increasingly prefer the convenience, amenities, and cultural attractions offered by city centers. This trend supports stable property prices in historically significant areas like Toulouse's city center. Furthermore, cities like Paris and Lyon, which have similar historical preservation regulations, have maintained stable property prices in their city centers, suggesting a similar outcome for Toulouse.
Sources: Groupe Mercure, Groupe Mercure, Adrian Leeds
2) Rental yields in the city center will rise as more tourists and business travelers seek short-term rentals
Rental yields in the city center of Toulouse are poised to increase as demand for short-term rentals grows among tourists and business travelers. This trend is driven by several key factors that have been observed over the past few years.
Firstly, Toulouse has become a major tourist destination, attracting 5.5 million visitors annually. This influx of tourists naturally boosts the demand for short-term rentals, as many visitors prefer the flexibility and amenities these accommodations offer. Additionally, the city's strong economic presence, particularly in industries like aerospace and technology, draws a significant number of business travelers. The presence of major companies like Airbus further supports this demand.
Moreover, platforms like Airbnb have gained popularity in Toulouse, with 4,496 active listings as of September 2024. The median occupancy rate for these short-term rentals is 71%, indicating a robust market. This high occupancy rate suggests that short-term rentals are in high demand, which in turn drives up rental yields. Furthermore, the average annual rental yield for short-term rentals in Toulouse is higher than that of long-term rentals, making them an attractive investment option.
Sources: GuestReady, Airbtics, Beyond Pricing
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) Energy-efficient home development in Toulouse will grow due to new environmental regulations
In recent years, new environmental regulations have been a driving force behind the development of energy-efficient homes in Toulouse. These regulations have set higher energy efficiency standards for buildings, such as France's RT2012, which requires new buildings to use significantly less energy compared to older standards. This means that new homes must be designed to consume less energy, making them more efficient and environmentally friendly.
Additionally, the European Union's revised Energy Performance of Buildings Directive aims to create a highly energy-efficient and decarbonized building stock by 2050. This directive encourages the retrofitting of existing buildings and introduces a zero-emission standard for new constructions. Such measures push developers and homeowners to prioritize energy efficiency in their projects.
Government incentives also play a crucial role in promoting energy-efficient construction. The French government offers subsidies for green renovations, making it financially attractive for homeowners to upgrade their properties. Moreover, the European Union has allocated substantial funds to support energy efficiency measures, further encouraging the development of sustainable homes.
Consumer demand for sustainable homes has been on the rise, with studies showing that properties with higher energy performance ratings sell for more. This trend indicates that buyers are increasingly valuing energy efficiency, which in turn motivates developers to focus on building homes that meet these expectations.
Sources: BCG, GBPN Library, Energy Performance of Buildings Directive
4) Toulouse’s property prices will rise moderately as the city’s economy grows
Toulouse is experiencing a steady rise in property prices, thanks to its thriving economy.
The city is buzzing with activity, especially in the aerospace and tech industries, where giants like Airbus and Thales are expanding. This growth is a magnet for job seekers and businesses, boosting the local economy and driving up the demand for housing.
Infrastructure is another piece of the puzzle. Toulouse has been investing heavily in public transportation and other projects, making it easier for people to move around. This improved connectivity is attracting more residents and businesses, further increasing the demand for homes.
As more people flock to Toulouse, the population is on the rise, naturally leading to a higher demand for housing. With more people looking for homes, property prices are nudged upwards.
Low vacancy rates are also a big deal here. With fewer properties available, buyers are competing fiercely, which means prices are climbing. Plus, rental prices are on the up, signaling a strong demand for housing that often translates into higher property values.
All these factors combined paint a picture of a city on the move, with property prices reflecting its vibrant growth. Toulouse's real estate market is a hot topic for anyone looking to invest in a dynamic urban environment.
Sources: Doorfeed, Invest in Toulouse, Groupe Mercure
5) City center rents will rise as demand for prime locations stays high
Rents in Toulouse's city center are on the rise, driven by several key factors.
In 2023, studio apartments in the heart of Toulouse cost around €16 per square meter. This steady increase in rental prices highlights the strong demand for housing in these prime locations. People are drawn to the city center for its vibrant lifestyle, proximity to work, and access to amenities.
The city's population is also on the upswing, with a 0.97% annual growth rate expected in 2024, pushing the number of residents to over 1 million. This population boom is fueling the demand for housing, especially in central areas where everything is within reach.
Moreover, the real estate market in Toulouse is bouncing back. There's a sustained demand for properties in the central districts, but the supply is limited. This imbalance is driving up prices, making it a competitive market for buyers and renters alike.
In these bustling central districts, the average selling price for properties reflects the high demand. Buyers are eager to invest in these areas, knowing the value of being close to the city's pulse.
For those considering a move to Toulouse, it's worth noting that the demand for prime locations remains strong, and this trend is expected to continue. The city's charm and opportunities make it a desirable place to live, keeping the real estate market lively.
Sources: Groupe Mercure, Macrotrends, Colivys
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6) Demand for rentals near universities will grow as more international students arrive
The influx of international students has been a significant trend in recent years, particularly in cities like Toulouse. In 2023 and 2024, the University of Toulouse saw a substantial number of international students, making up 40% of its over 100,000 student population. This increase in international enrollment is a key factor driving the demand for rental properties near universities.
International students often prefer to live close to campus for convenience and access to academic resources. This preference naturally leads to a higher demand for rental properties in these areas. However, there has been a notable shortage of affordable housing options near universities, which has been highlighted as a significant issue by 29% of university officials globally.
To address this growing demand, there has been increased investment in student housing developments near universities in Toulouse. These investments aim to provide more affordable and convenient housing options for international students. Additionally, real estate market analyses have predicted that the demand for rental properties near educational institutions will continue to grow as the number of international students increases.
Sources: University of Toulouse, TSM Education, University World News
7) More foreign buyers will invest in Toulouse real estate as the city becomes more internationally recognized
Foreign buyers are eyeing Toulouse as it gains fame on the global stage.
Why? Well, Toulouse is becoming a tech and aerospace powerhouse. With giants like Airbus and Thales Alenia Space calling it home, the city is buzzing with innovation. This tech boom is attracting international companies, which means more jobs and a thriving economy. It's no wonder investors are taking notice.
Another big plus is Toulouse's excellent connectivity. The Toulouse-Blagnac airport links the city to over 80 international destinations. This makes it super convenient for international buyers to hop in and out, adding to the city's allure.
Then there's the student factor. Toulouse is a magnet for international students, thanks to the University of Toulouse and top engineering schools. This influx of students creates a steady demand for housing, making it a hot spot for real estate investment.
With its growing reputation and strategic location, Toulouse is becoming a prime target for foreign investors. The city's blend of tech innovation, connectivity, and educational appeal is hard to resist.
As more international companies and students flock to Toulouse, the real estate market is set to become even more attractive. It's a city on the rise, and savvy investors are keen to get in on the action.
8) Interest from Asian investors in Toulouse real estate will grow as they diversify their European investments
Asian investors are increasingly eyeing Toulouse properties as they look to diversify their European portfolios.
One big reason for this interest is the growing number of direct flights from major Asian cities to Toulouse. This improved connectivity not only makes travel easier but also signals a rising interest in the city as a business and investment hub.
Another factor is the favorable exchange rates for Asian currencies against the Euro. This makes European real estate, including properties in Toulouse, more affordable and appealing to Asian investors.
Toulouse is not just any city; it's known for its strong tech and aerospace sectors. This reputation, combined with its economic vitality, makes it a strategic choice for investors seeking growth opportunities.
The city's vibrant economy and high quality of life add to its allure. For investors, these elements make Toulouse a compelling destination, offering both economic potential and a desirable living environment.
As Asian investors continue to diversify their portfolios, Toulouse stands out as a prime location with promising prospects and strategic advantages.
Sources: Groupe Mercure, Flight Connections, Savills
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) More young professionals moving to Toulouse for jobs will boost the city's population growth
Toulouse is becoming a hotspot for young professionals thanks to its booming job market.
In 2024, the metro area population of Toulouse saw a 1.04% increase from the previous year, reaching 1,071,000 people. This growth is fueled by thriving industries like aerospace and technology, which are creating numerous job opportunities.
Companies such as Exotrail and Liebherr-Aerospace Toulouse are actively hiring in fields like engineering and software development. This robust job market is a magnet for young professionals eager to advance their careers. The expansion of these companies in the region further underscores this trend.
Demographic studies highlight a steady influx of young professionals, drawn by Toulouse's high-tech and aerospace sectors. The city's charm is amplified by its unique architecture and cultural amenities, making it a top choice for younger demographics.
Moreover, Toulouse's transportation infrastructure improvements and its affordable cost of living compared to other major French cities make it even more appealing. The presence of a world-renowned university adds to its allure, offering educational and professional growth opportunities.
As more young professionals flock to Toulouse, the city's vibrant atmosphere and career prospects continue to grow, making it a dynamic place to live and work.
Sources: Macrotrends, Space Crew, World Population Review
10) Property prices on the outskirts of Toulouse will drop slightly as urban living becomes more popular
The outskirts of Toulouse are seeing a slight decline in property prices as more people prefer urban living.
Over the past decade, Toulouse has welcomed an average of 5,000 new residents each year, with most flocking to the city center. This influx is driven by a desire for urban amenities and lifestyle, making neighborhoods like Saint-Etienne, Capitole, and Saint-Georges hotspots for young residents.
In 2023, there was a 22% drop in older home transactions in the suburbs, signaling a shift in demand. People are increasingly drawn to the vibrant city life, leaving suburban properties less appealing.
Enhanced public transit options, including better pedestrian and cycling facilities, make city living more convenient. These improvements are part of the Toulouse Urban Project, which aims to boost urban development and make the city even more attractive.
Investments in urban infrastructure are paying off, as they not only improve convenience but also enhance the overall appeal of city life. This trend is expected to continue, with more people choosing the city over the suburbs.
As urban living becomes more desirable, the outskirts of Toulouse may continue to see a decline in property prices, reflecting the growing preference for city life.
Sources: Groupe Mercure, Culture EC
11) Property values near the Toulouse Aerospace Express will rise significantly as the project nears completion
The area around the Toulouse Aerospace Express is poised for a significant increase in property values as the project nears completion. This is largely due to the project's aim to improve public transport coverage by creating links with existing metro lines, the tramway network, and the Airport Express Line. Enhanced connectivity is expected to increase demand for housing, driving up property values.
Historically, major infrastructure projects have led to property value increases, as seen with the Grand Paris Express in Paris. This expansion improved accessibility and reduced travel times, attracting more residents and businesses. Similarly, the Toulouse Aerospace Express is expected to enhance the area's appeal, leading to higher property values.
Moreover, the project is anticipated to create new job opportunities, serving the aviation labor pool and contributing to economic growth. This economic activity can attract more people to the region, further driving up property values. Additionally, real estate agents in Toulouse have reported rising inquiries and sales, indicating ongoing interest in the area.
Sources: Groupe Mercure, World's Best Cities, Tisséo Collectivités
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12) Suburban rental yields will dip slightly as more properties hit the market
New construction projects in Toulouse's suburbs are reshaping the rental market.
Take the 1pulsion project, for example. With more properties popping up, vacancy rates are climbing. This often means landlords might have to lower rents to fill those empty spaces.
There's also a shift in where people want to live. Thanks to remote work, urban centers are becoming more attractive. People don't need to stay in the suburbs just to be near their jobs anymore.
In Toulouse, this trend is noticeable. Reports show declining demand for suburban rentals. When fewer people are looking to rent, landlords might see their rental yields dip.
Real estate market analysis highlights a stabilization in property prices. This usually signals a slowdown in demand, which can impact rental yields negatively.
Sources: GA Smart Building, MM Legal, Groupe Mercure
13) Property prices in suburban areas will rise gradually as families look for more space and quieter surroundings
Remote work is reshaping where people want to live, with many opting for more space and peace.
As folks embrace working from home, they're eyeing suburban areas for their larger homes and quieter streets. This shift, which kicked off in 2023, is all about finding that sweet spot between work and life. People are moving away from the hustle and bustle of city life, seeking a more balanced lifestyle.
Suburban living is becoming increasingly popular, and it's not just a trend. Property sales and prices in these areas are climbing as more people make the move. Surveys highlight a growing preference for the calm and space that suburbs offer, making these homes hot commodities.
There's a clear population shift happening, with more folks heading to the suburbs. This isn't just about wanting a bigger backyard; it's about finding a peaceful environment to call home. Economic factors and lifestyle changes are pushing this migration, and it's likely to keep going strong.
Families, in particular, are drawn to the suburbs for the extra room and tranquility. Suburban areas are expected to see a steady rise in property values as this demand continues. The appeal of a quieter, more spacious living environment is hard to resist.
As more people prioritize better living conditions, the suburban trend is set to grow. Suburban homes are becoming increasingly desirable, and this is reflected in the rising property prices. The shift from urban to suburban living is a response to changing work habits and lifestyle preferences.
Sources: Luxury Living Spot, International Journal Corner
14) Rental yields will increase in student areas as universities grow and attract more international students
Universities in Toulouse are expanding and drawing more international students.
Take Université Toulouse Capitole and INSA Toulouse, for example. They already have a good number of international students and are planning to welcome even more. This push for internationalization is driving up the demand for student housing in these areas.
As these universities grow their international programs, more international students are applying and getting admitted. This mirrors what's happening in the US, where there was an 11.5% jump in international student enrollment in 2022-23. Naturally, more students mean a higher need for housing, especially close to campus.
In student-heavy areas, rental markets often see strong growth. In the US, for instance, student housing saw a national average rental growth of 9.78% in 2023. In Toulouse, preleasing for the 2024-25 school year has already broken past records, showing a strong demand for student accommodation.
This demand is likely to push rental yields higher as more students look for places to live near their universities. Rental yields in these areas are expected to rise as universities continue to expand and attract international students.
Sources: UT Capitole, Amber Student, INSA Toulouse, Multifamily Executive
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.
15) Luxury rental yields in Toulouse will rise as wealthy individuals look for exclusive homes
The rental yields in luxury properties in Toulouse are expected to see a boost due to several key factors. First, there's a rising demand for luxury properties in the city, driven by its growing reputation as a desirable location for high-net-worth individuals. Toulouse's vibrant cultural scene and thriving aerospace and high-tech industries make it an attractive destination for affluent individuals seeking exclusive urban living.
Additionally, the number of high-net-worth individuals relocating to Toulouse has been increasing. This trend is partly due to recent political instability in France, which has led wealthy French individuals to consider relocation. Toulouse offers a more stable economic environment and a high quality of life, making it a preferred destination for these individuals.
The luxury real estate market in Toulouse is also showing growth, with average gross rental yields around 4.26%. Studio apartments yield 5.35%, and 1-bedroom apartments yield 4.66%, indicating a growing interest in luxury real estate. The limited supply of exclusive residences in the area further contributes to the rising demand and potential for higher rental yields.
Sources: GuestReady, Wikipedia, IMI Daily, Global Property Guide
16) Demand for accessible housing in Toulouse will grow as the population ages
As we look back at the past few years, it's clear that the aging population in Toulouse has been growing steadily. In 2023, the metro area population was 1,060,000, and by 2025, it is projected to reach 1,080,000. This increase includes a significant number of older adults, which is a trend seen across France as the number of people aged 65 and over continues to rise.
With life expectancy increasing, more people are living longer, which naturally leads to a higher demand for accessible housing. In France, every five minutes, three older persons are added to the population, highlighting the need for housing that accommodates their needs. Older adults often prefer living in areas with good access to amenities and services, and in suburban Toulouse, over 70% of senior households are owner-occupied, showing a preference for stable and accessible living environments.
The demand for single-story homes or apartments with elevators is also on the rise. This is because older adults prioritize mobility and accessibility, which is reflected in the growing construction of senior-friendly housing developments. For instance, residences like Les Jardins d'Isaure in Toulouse offer a variety of activities and services tailored for the well-being of seniors.
Government initiatives are also playing a role in promoting age-friendly urban planning, although specific policies in Toulouse are not detailed. However, the trend towards creating medico-social institutions and adapting housing for seniors indicates a proactive approach to addressing the needs of an aging population.
Sources: Macrotrends, Three Best Rated, Appalachian State University, INED, ArchDaily
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.