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What is happening in Toulouse’s real estate market? Are prices on the rise or decline? Is the city still attracting international buyers and investors? How are local government policies shaping real estate dynamics in 2025?
These are the questions we hear every day from professionals, buyers, and sellers across Toulouse and its surrounding areas. You might be curious about these trends too.
We understand this because we maintain close connections with local experts and individuals like you, exploring the Toulouse real estate market daily. That’s why we crafted this article: to deliver clear answers, insightful analysis, and a comprehensive view of market trends and dynamics.
Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we missed something or could improve, we’d love to hear your feedback. Feel free to message us with your thoughts, and we’ll strive to enhance this content for you.
1) Rental yields for properties near universities will rise due to strong student demand
Properties near universities, like those in Toulouse, are hot spots for rental investments.
The University of Toulouse is bustling with over 100,000 students, including many from abroad, all looking for a place to stay. This influx of students is a key driver of the housing demand in the area.
Rental prices in these university districts are climbing. For the 2024-2025 school year, some areas have seen a 15-25% increase in rent compared to last year. Students are clearly willing to pay more to be close to campus, which is great news for property owners.
Vacancy rates are low, underscoring the strong demand for student housing. In fall 2023, occupancy rates hit 94.6%, meaning nearly all available housing was snapped up. This high demand is a boon for rental yields.
Investing in properties near universities is a smart move, especially with the steady stream of students each year. The combination of rising rents and low vacancies makes these areas particularly attractive for investors.
Sources: Times Higher Education, PR Newswire, Brookfield Oaktree
2) Stricter rental rules will impact the profitability of short-term rentals
Stricter rental regulations in Toulouse, introduced in the past few years, have imposed significant limitations on short-term rental properties. For instance, primary residences can only be rented out for a maximum of 120 days per year, and secondary residences must be officially declared to the city. These rules have made it more challenging for property owners to maximize their rental income.
Additionally, the French Parliament's introduction of a centralized online registry and stricter energy efficiency requirements has increased the operational costs for short-term rental operators. These compliance costs, along with reduced tax allowances for furnished tourist accommodations, have further squeezed the profitability of these properties.
Moreover, cities with similar regulations, like Paris, have experienced a decrease in short-term rental listings and a shift towards long-term rentals. This trend suggests that property owners in Toulouse might face reduced profitability as they adapt to the new regulatory environment.
Increased competition among the remaining short-term rental listings could lead to lower occupancy rates, further impacting profitability. Real estate agents and property managers have likely observed reduced investment in short-term rental properties, as the business becomes less attractive due to the increased compliance costs and potential penalties for non-compliance.
Sources: Rental Scale-Up, Planetizen
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) Property interest in Carmes will decline as prices rise and availability remains limited
The historic district of Carmes in Toulouse is seeing a significant rise in property prices.
In 2024, prices hit €4,950 per square meter, making Carmes one of the priciest spots in the city. This surge is a big reason why interest in buying property here might drop. Fewer listings are popping up, showing a limited supply of available properties. For instance, a T3 apartment recently listed at €470,000 is quite exclusive, likely scaring off many potential buyers.
Real estate agents are noticing reduced buyer interest in Carmes, mainly because of these steep prices. It was the first Left Bank area where prices went over €5,000 per square meter, which could be a deal-breaker for some. Younger buyers are looking at more budget-friendly neighborhoods like Empalot, Papus, and Mirail, where prices are much lower.
Media often talks about how tough it is to buy in historic areas like Carmes, focusing on the high prices and limited options. This coverage, along with younger folks moving to cheaper areas, hints at a trend of decreasing interest in historic districts.
Sources: Groupe Mercure, Green Acres
4) Virtual reality tours will become more popular, enabling buyers to view properties from afar
Virtual reality tours have become increasingly common in the real estate market, allowing buyers to view properties remotely. This trend has been driven by several key factors. First, the global market value of VR in real estate was projected to reach $2.6 billion by 2025, up from $800 million in 2020, indicating significant growth and investment in this technology.
Additionally, consumer preferences have shifted towards virtual experiences, with 67% of home buyers expressing a desire for virtual tours when looking at listings. This demand is further supported by the fact that listings with virtual tours receive 87% more views, and potential buyers spend significantly more time on these websites.
Technological advancements have also played a crucial role in making VR tours more accessible and affordable. Predictive analytics and AI tools have enhanced the quality of virtual tours, allowing for personalized search tips and detailed property information. These improvements have made virtual tours a key tool for decision-making, with 75% of prospective buyers considering them essential before purchasing.
Sources: PhotoUp, EZ Real Estate Tools, LLC Buddy
5) British buyers will increasingly seek properties in EU countries after Brexit
Since Brexit, British citizens are increasingly buying properties in EU countries to keep their European ties.
One of the most popular destinations is France, where property inquiries have skyrocketed by 582% according to Kyero, a UK-based international property portal. This surge happened after an amendment was rejected that would have let British second-home owners stay longer in France without a visa.
Currently, around 177,000 Britons live full-time in France with residency permits, making up about 24% of the foreign population there. This shows a strong desire not just to visit, but to actually settle in France. Popular regions like Nouvelle-Aquitaine and Occitania are particularly attractive to British buyers.
Looking ahead, the European property market is expected to grow by 2025, with Toulouse emerging as a key area for British buyers. This is reflected in the increased attendance of British buyers at French property exhibitions and a surge in online searches for French properties.
The media buzz around visa rule changes has also highlighted the British interest in maintaining ties with France through property ownership. This interest is not just about investment; it's about lifestyle and maintaining a connection to Europe.
Sources: Wikipedia, Varso Invest, Euronews
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6) Rangueil will attract more students and academics due to its closeness to universities
The district of Rangueil in Toulouse is becoming a hotspot for students and academics thanks to its closeness to major universities.
Rangueil is just a stone's throw from Université Paul Sabatier, which boasts nearly 30,000 students. This makes it a prime spot for those looking to live near their campus. With rental prices in central Toulouse on the higher side, students are increasingly eyeing Rangueil for more budget-friendly options.
Getting around is a breeze with metro line B connecting Rangueil to the city center, making it super convenient for students to commute to their universities and explore the city. This ease of access is a big draw for those who want to balance study and city life.
New student residences are popping up, like the Campus des Sciences de Rangueil, offering modern, fully furnished apartments. These developments are a direct response to the growing demand for student housing in the area.
Interestingly, about 30% of students in Toulouse prefer living close to their universities, highlighting the appeal of Rangueil's location. This trend is fueling the push for more student accommodations in the district.
With its strategic location and ongoing development, Rangueil is set to become even more popular among students and academics looking for a convenient and affordable place to live.
Sources: Studapart, Edurank, Adele
7) Smart home technology will be a major selling feature for new properties in Toulouse
Smart home technology is becoming a key selling point for new properties in Toulouse due to several compelling reasons.
First, the adoption of smart home devices in France has been on the rise. In 2023, the market was valued at USD 4.51 billion and is projected to grow significantly, reaching USD 14.58 billion by 2030. This growth is driven by the increasing urban population, with about 81.8% of people living in cities, which boosts the demand for connected home products.
Additionally, there is a strong consumer interest in energy-efficient and sustainable living solutions. The French government has set ambitious goals to reduce energy consumption, supported by laws like the "Loi de Transition Energétique." Smart home energy management systems help homeowners manage energy use more efficiently, aligning with these goals.
Moreover, surveys show that buyers prefer tech-enabled homes. Features like smart lighting systems, which can be controlled remotely, are highly attractive. This convenience and control make smart homes appealing to potential buyers.
Sources: NextMSC, Race Communications, Mordor Intelligence, Baker McKenzie
8) New regulations will boost energy-efficient building development, affecting property values
New regulations, like the RE2020 in France, have been pushing for buildings to meet high energy and environmental standards since 2022. These rules are designed to make buildings more energy-efficient, which means they use less energy and are more comfortable during hot weather.
In Europe, there's a noticeable trend of more buildings getting energy-efficient certifications. This is important because buildings are a big part of global carbon emissions, and reducing these emissions is a priority. People are also showing a strong preference for energy-efficient homes, which means they are more likely to buy properties that meet these standards.
There are examples, like in Denmark, where energy-efficient upgrades have led to higher property values. This is because these buildings cost less to run and are more appealing to buyers. In Toulouse, energy-efficient buildings are likely to have lower utility costs, which is a big selling point for potential buyers.
Sources: JDSupra, World Economic Forum, European Commission
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) Foreign buyers will increasingly target Toulouse for its rising status as a tech hub
Foreign buyers are showing increased interest in Toulouse, largely due to its growing reputation as a tech hub. In recent years, the city has seen a significant decrease in the average time to sell a property, dropping from 55 days in 2023 to just 40 days in 2025. This indicates a more active real estate market, which is often a sign of increased demand and interest from buyers, including those from abroad.
Moreover, the stabilization and slight decline in property prices in 2024 have made the market more attractive to foreign investors. When prices stabilize, it often gives buyers more confidence to invest, knowing that they are entering a market that is not overly volatile. This is particularly appealing to foreign investors who are looking for stable and promising investment opportunities.
Adding to this, Toulouse has been gaining recognition as a major tech hub, with media coverage highlighting advancements in AI, IoT, and cybersecurity. The presence of tech companies like Simera Sense, which is expanding its development hub in the city, further underscores Toulouse's appeal. Such developments not only boost the local economy but also attract foreign talent and investors who are keen to be part of a thriving tech ecosystem.
10) Asian investors will increasingly target Toulouse’s market, drawn by the city’s aerospace industry
In recent years, Asian investors have shown a growing interest in European real estate markets, and this trend is likely to extend to cities with strong industries like Toulouse. The city's reputation as an aerospace hub is a significant draw, attracting students and professionals from Asia, which further strengthens its appeal.
Partnerships between Asian aerospace companies and Toulouse-based firms have been on the rise. For instance, Airbus's collaboration with the Chinese aviation industry, including a major agreement with the China Aviation Supplies Holding Company in 2023, highlights the increasing cooperation between European and Asian aerospace sectors. This collaboration underscores the potential for more Asian investment in Toulouse's aerospace industry.
Moreover, the aerospace industry in Toulouse is experiencing growth, with major companies like Airbus expanding their operations. This expansion is likely to attract more investors, including those from Asia, who are interested in the city's aerospace innovation and potential for growth.
Sources: Airbus, Embry-Riddle Asia, Deloitte
11) Demand for affordable rentals near universities will rise with the growing student population
The growing student population in Toulouse is driving up demand for affordable rentals near universities.
Toulouse is becoming a magnet for students, thanks to its booming high-tech and aerospace industries. This influx of students is pushing up the need for housing, especially close to campuses. Student housing within a mile of universities saw a rent increase of 7.3% in March 2024, compared to just 5.8% for other properties. Clearly, students prefer to live near their schools, which is making nearby rentals even more sought after.
There's a real shortage of student accommodation in Toulouse, which is making the hunt for affordable places even tougher. Students are on the lookout for budget-friendly options, typically between €400 and €700 a month. This demand, coupled with the lack of available housing, is creating a competitive market for rentals near universities.
Living close to campus is not just about convenience; it’s also about being part of the vibrant student community. Proximity to universities offers easy access to resources and social activities, which is a big draw for students. This lifestyle factor is another reason why rentals near universities are in high demand.
For property investors, this trend is a golden opportunity. Investing in student housing near universities could yield significant returns, given the consistent demand. The student population is expected to keep growing, ensuring a steady stream of potential tenants.
With Toulouse's reputation as a student-friendly city, the demand for affordable rentals is unlikely to slow down anytime soon. This makes it an attractive market for those looking to invest in rental properties.
Sources: World Population Review, Amber Student, TBS Education
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12) Suburban rental yields will dip slightly as more people relocate to city centers
In recent years, we've seen a shift in where people want to live, especially in places like Toulouse. More folks are choosing to move closer to the city center, and this is having an impact on suburban rental yields.
One of the main reasons for this shift is the increasing rental prices in the city center. In 2023 and 2024, the price per square meter for rental properties in the city center was higher than in suburban areas. This trend suggests that more people are willing to pay a premium to live in the heart of the city, where they can enjoy the convenience and vibrancy of urban life.
Additionally, urban development projects like the Toulouse Urban Project have made city centers more appealing. These projects aim to enhance the city's infrastructure and amenities, making urban living more attractive. Improved public transportation also plays a role, as it makes commuting easier and more efficient, further drawing people to the city center.
Demographic shifts are also contributing to this trend. Toulouse has a growing population, including many students and young professionals who prefer the lifestyle that city centers offer. They value walkability, cultural attractions, and shorter commutes, which are more readily available in urban areas.
As more people move to the city center, the demand for suburban rentals decreases, leading to a slight decline in suburban rental yields. This is also reflected in reduced suburban property investments, as investors follow the trend towards urban living.
Sources: Culture EC, Lodgis, Doorfeed
13) City center rental yields will rise as demand for urban living grows
Rental yields in Toulouse's city center are set to rise as urban living becomes increasingly popular.
Over the past decade, Toulouse has welcomed an average of 5,000 new residents each year, pushing up the demand for housing in the city center. This growing population is naturally driving rental prices higher as more people seek places to live.
The city is a hotspot for young professionals and students, drawn by its booming aeronautics and space industry and cultural attractions like three UNESCO World Heritage Sites. With 5.5 million visitors annually, the demand for both long-term and short-term rentals in the city center is on the rise.
Urban development projects, such as the Toulouse Metro expansion, are making city living more convenient and attractive. These improvements are enticing more people to move to the city center, further boosting rental demand.
As the city becomes more appealing, the influx of new residents and visitors is expected to continue, leading to increased competition for rental properties. This trend is likely to result in higher rental yields for property owners in the city center.
Sources: GuestReady, Culture EC, Systra, DoorFeed
14) Rental yields in older buildings will drop as tenants favor modern amenities
In Toulouse, tenants are increasingly favoring modern amenities in rental properties.
In 2023 and 2024, there's been a noticeable trend where newer developments with features like gyms and smart home technology are in high demand. These properties, even with higher price tags, attract tenants who value energy-efficient appliances and contemporary living spaces.
Older buildings often miss out on these modern perks, leading to higher vacancy rates. In historic parts of Toulouse, properties with terraces are rare and quickly taken, showing how much tenants value modern features. Real estate agents frequently observe that tenants are drawn to newer buildings for these reasons.
Maintaining older properties can be costly, which cuts into profits and makes them less appealing to both tenants and investors. Urban development policies in Toulouse also favor modern infrastructure, which further boosts the appeal of newer developments.
Sources: Houses and Apartments, Groupe Mercure, GoGoFrance
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) Young professionals will find properties with shared amenities, like co-living spaces, increasingly appealing
In recent years, properties with shared amenities, like co-living spaces, have become increasingly attractive to young professionals. This trend is particularly noticeable in cities like Toulouse, where the rental market is strong, with 64% of housing being rented out. The affordability of living in Toulouse compared to other major French cities, such as Paris, makes it an appealing option for young professionals looking to save money.
Co-living spaces gained popularity in 2023 among millennials and Gen Z due to their fully-managed nature and the luxury of having all necessary amenities included. This trend aligns with the rise of digital nomad hubs, which have increased by 25% over the past two years, catering to remote workers who need flexible leases and fully furnished accommodations. As remote work continues to grow, the demand for such flexible living arrangements is expected to rise.
Surveys have shown that young professionals prefer community-oriented living, with over 60% of respondents prioritizing fully-managed spaces with all necessary amenities. Additionally, a high satisfaction rate of 90% among millennials in co-living accommodations underscores the appeal of these spaces. Co-living is also cost-effective, with prices often lower than traditional housing options, making it an attractive choice for those looking to save money.
Sources: Coliving Trends in 2023, Accommodation in Toulouse, Co-living Accommodation for Millennials and Gen Z
16) Property prices in flood-prone areas will drop as climate change concerns increase
In recent years, we've seen a growing concern about climate change and its impact on real estate, especially in flood-prone areas. One of the main reasons properties in these areas are expected to decline in value is due to the increased frequency and severity of flooding events. Scientific research has shown that climate change is making extreme weather events, including floods, more likely. For example, a study on the Valencia region found that climate change made an event with the same rainfall intensity twice as likely to occur.
Another factor contributing to the decline in property prices is the rising cost of insurance premiums for homes in flood zones. As climate change leads to more frequent and severe weather events, insurance companies are adjusting their rates to cover potential losses. This has been observed in Spain, where the Bank of Spain reported significant losses in home values due to extreme weather events over a six-year period. Higher insurance costs make these properties less attractive to buyers, further driving down their market value.
Additionally, media coverage and government reports have highlighted the risks associated with living in flood-prone areas. In France, the government has been working on flood risk governance, which includes using documents like Georisques to assess and communicate flood risks. This growing awareness is influencing buyer preferences, with surveys indicating that more people are seeking properties outside of flood zones. As a result, properties in safer areas are becoming more desirable, while those in flood-prone regions are losing their appeal.
Sources: Connexion France, Munich Re, CaixaBank Research
17) Toulouse will experience moderate price increases as demand exceeds supply
Property prices in Toulouse are on the rise, even after a slight dip in 2023.
With the city's population expected to hit 1,070,750 by 2024, the demand for housing is intensifying. This growth is not just about numbers; it's about the vibrant urban life that Toulouse offers, attracting more people to settle here.
In the heart of Toulouse, the real estate market is feeling the squeeze. Central districts are particularly tight on supply, with new housing developments lagging behind the demand. This scarcity is making it harder for buyers to find properties, pushing prices up.
Rental properties are also in high demand, with low vacancy rates making it a competitive market. This is a clear sign that people are eager to live in Toulouse, whether buying or renting, and it's driving property prices higher.
Overall, the market is seeing a moderate increase in property prices as demand continues to outpace supply. This trend is expected to persist, especially in areas where new developments are scarce.
Sources: Groupe Mercure, World Population Review
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.