Expert Insight, Breaking News, and Insider Stories on Real Estate in Paris
12 cities in greater Paris worth looking into for investment.
For those looking to invest, the spotlight is on the Greater Paris region. With the construction of a new transport network linking the cities and suburbs around Paris, there are endless opportunities in store. From now on, investing in Greater Paris is an excellent idea. However, for this investment to be truly profitable, it is essential to target the right cities in which to invest.
Le Grand Paris Express
Le Grand Paris is an urban, social and economic project. Its main focus is the new transport network. The latter is an automatic metro circulating on 200 km of railway and comprising 68 stations. The creation of this new transport network aims to connect the major economic centers of the region and for it to be a support for economic and social development. The Grand Paris Express will also serve major centers of activity such as airports and business centers, as well as universities and metropolitan areas which are still difficult to access today.
The purpose of the project is also the implementation of facilities that aim to improve the living environment of the inhabitants. Indeed, the construction of this automatic bypass metro will facilitate the mobility of people. It also allows the decongestion of existing railway lines. Thus, the real estate market will develop at the same time as the construction of the line.
Multiple Reasons to Invest in Grand Paris
The Grand Paris Express is by far the most important aspect of the immense project. It will be accompanied by new construction with an entire renovation of cities and districts in Ile-de-France. Moreover, it is still possible to find particularly attractive properties in the Grand and Petite Crown to invest in. In this context, the Greater Paris real estate sector represents a rental return of 4% – 7%.
Also, according to real estate market specialists, investing in Grand Paris Ile-de-France is an investment opportunity for future owners. This, despite the fact that today this sector is far from everything, currently out of reach by public transportation. Later, it will find itself in the large transport network which will facilitate access to the heart of Paris as well as all of Ile-de-France. For this reason, Parisians who are looking for a good quality of life will soon be able to leave Paris to find suitable, and markedly less costly, accommodation in Île-de-France.
Due to the construction of this new railway, the prices of real estate affected by Greater Paris will soon increase. However, for investors, it is not yet too late to acquire a property there.
How and Where to Invest
Real estate investment in Paris essentially concerns the acquisition of new real estate.
Location is the most important criterion for any real estate acquisition. In this context, the project offers every chance to buyers to ensure a profitable acquisition in the long term. It is best to choose the location of a property according to the strategic situation. Indeed, there are construction programs that will help to promote the dynamism of the municipalities.
The best investment opportunities are found in areas that are still unattractive today. Indeed, although these areas are still underdeveloped, the arrival of a station will totally change the future development of these places. Thus, the most promising areas of Paris are those close to a metro line interconnection. On the other hand, one should not neglect the cities which have only one station. It is certain that the construction of the Paris Express will lead to the development of active city centers.
Saint-Denis, Saint-Ouen, Villejuif, Aubervilliers, Villiers-sur-Marne, Clichy and Argenteuil are among the most attractive sectors. On the other hand, the most patient investors can bet on a rental investment in Orsay or the Saclay plateau. Later, these sectors will present a strong potential in rental real estate.
North and East Cities of Ile-de-France
The northern and eastern part of Île-de-France is made up of many dynamic cities. These cities are very popular with real estate investors. In addition, thanks to Greater Paris, many infrastructures as well as housing will be built there to accommodate the new inhabitants.
With the Grand Paris Express project, lines 12 and 15 will be extended, including two new stations planned for 2025. The extension of these lines will boost the real estate market. Indeed, in recent years, the price of real estate has increased by 10%. Despite this increase, it has been noted that the price of old real estate is still below the prices recorded in Seine Saint Denis and especially in Saint-Ouen. The price per square meter of an apartment is 3,236€ compared to 3,524€ for Saint-Denis and 5,931€ for Saint-Ouen. This makes Aubervilliers one of the most affordable cities in real estate in the Grand Crown.
Like any rental property investment, there are areas predicted to be more profitable than others. Thus, the focus is on the cities closest to transport and shops. After the commissioning of new railways in 2030, the surroundings of the Town Hall and Fort d’Aubervilliers stations can offer great opportunities. On the other hand, it is no less true for the Porte d’Aubervilliers which is located a stone’s throw from the Millénaire shopping center, but also from the RER and metro lines 7 and 12.
Located near the capital, Saint-Ouen-sur-Seine is the first town to benefit from the arrival of the main line. Its metro line 14 was extended in 2020-2021. For a rental property investment, the district of the ZAC des Docks is the most suitable. As this district is in full development, it will have all the assets at its disposal. The proximity of shops, schools, offices, services and especially public transport available to the population will appeal to young workers and families. Indeed, the district is taking its development back in hand by welcoming businesses, shops and housing. Currently, the price per square meter of an apartment with one or more rooms is between 4,500€ and 5,900€. The evolution of the real estate price in this city is about 3.4% per year.
Saint-Denis, which is particularly dynamic, will house the Olympic Village for the 2024 Olympic Games. For this reason, it is currently experiencing a complete revival. Thanks to the Grand Paris Express construction project, the future Saint Denis Pleyel inter station will connect 4 metro lines including lines 14, 15, 16 and 17 as well as RER D.
The creation of this future station is leading to unprecedented development in the district. It is mainly occupied by offices with the establishment of new housing, new businesses and trade. The next Olympics and the Grand Paris Express will further boost the attractiveness of Saint-Denis. This would be an opportunity not to be missed for real estate buyers. The price per square meter of an apartment in Saint-Denis is around 3,254€ with an annual gain of 11.5%.
On the other hand, apart from the Pleyel sector, the areas to be favored are the hyper center and the old district of Saint-Denis. It is possible that sooner or later the price of real estate in these areas will rise.
In 2022, Champigny-Sur-Marne opened two new stations. Moreover, its contribution to the “Cluster Descartes” should be at the origin of the creation of businesses and employment in the city. “Cluster Descartes” is a center of excellence in terms of research on the sustainable city. Because of this job creation, Champigny plans to build hundreds of homes. Most of these new dwellings will be located in the center-west sector near the Plant station and around the main roads.
The completion of these developments has aroused the curiosity of investors. The price per square meter is increasing by 6.6% annually, currently at 3,430€ per m2 for an apartment. The sectors to be favored particularly in this city for the acquisition of real estate are the districts of Coeuilly, Plant and Tremblay. The same is true for areas surrounding metro stations such as Champigny-centre and Bry-Villiers-Champigny.
Romainville is particularly attractive for the school facilities it has. Its cultural and sporting infrastructures are just as diversified. As the city will soon be served by metro line 11 before the Olympic Games, Romainville is the ideal location for investors looking for that rare pearl. In addition, many infrastructures are currently under construction in Romainville. The price of an apartment is around 4,075€ per square meter compared to the average of 10,500€ for Paris.
The Grand Paris Express project will lead to a complete remodeling of the towns in the west of Ile-de-France over the next ten years. Indeed, some will become more attractive than others.
Saint-Germain-en-Laye is characterized by the mixture of the forest, the art of living and the edge of the Seine. Belonging to the department of Yvelines, Saint-Germain-en-Laye offers a friendly and dynamic living environment to its inhabitants. This is the main asset of investing in this city. Being only ten minutes from the two motorways A86 and A13, Saint-Germain-en-Laye is very close to Paris. Moreover, by RER A, it is only 20 minutes from the Charles-de-Gaulle-Etoile station.
This proximity to Paris as well as the pleasant living environment in Saint-Germain-en-Laye means that the demand for accommodation in this city is quite high. Which is rather favorable for a rental investment. However, the price of an apartment in this city is quite high as the price per square meter is 6,870€, still comfortably below average prices in Paris.
Bordering Paris, Boulogne-Billancourt is gaining in value. It is very popular with real estate investors. Compared to the quality of the location, the price of real estate in Boulogne-Billancourt is considered to be relatively low, although the price per square meter already amounts to 7,500€. The price of real estate increases by 5.6% per year. Primarily, this city offers a very pleasant living environment to its inhabitants. Its economic, associative and cultural dynamism makes Boulogne-Billancourt a very attractive city.
Wealthy families from the Yvelines department have a particular attraction for the city of Versailles. This can be explained by the simple reason that, closer to the French capital, the city is well served. The essential infrastructures are also already present there. Indeed, located in the western suburbs, Versailles is 17 km from the capital. It has six stations and an RER station. The most famous schools are also present in Versailles. Currently, Versailles has become an affluent residential city with a particularly tertiary economy. However, the real estate price remains even lower compared to that of the capital. The price per square meter of an apartment is around 6,590€. For this reason, rental demand in Versailles is high.
Issy-les-Moulineaux and Clamart
As part of the Grand Paris metro, Issy-les-Moulineaux will benefit from two additional stations, Issy RER and Fort d’Issy-Vanves-Clamart, which are already under construction. Due to this construction project, approximately 3,000 housing units are planned by 2030. Currently, innovative constructions are becoming more and more numerous on the banks of the Seine. The center already attracts a good number of young and affluent populations who are looking for a comfortable and high-quality living environment.
In addition, Clamart, a sector still poorly served, will be completely opened up thanks to the arrival of the new main line. In addition, real estate transformation and transport will completely change the landscape. Investing in real estate in Issy-les-Moulineaux would be a real asset for a longer-term investment.
Nanterre is the one that benefits the most from the Paris Express with the two stations on its territory. Young working people and students are the most attracted to this city. Indeed, well served by public transport, Nanterre is home to Paris-Ouest University with its 33,000 students. This means that making a rental investment will be particularly profitable. In this context, furnished studios and apartments continue to be the most sought after.
Several head offices are also present in Nanterre and the La Défense business center covers part of its territory. Thanks to the presence of these different infrastructures, the market for small areas in the city center is highly coveted by rental investors. It should be noted that with more than 93,500 inhabitants, the price of real estate in Nanterre is still relatively low. The price per square meter is around 4,900€.
The south of Île-de-France also has many sectors where it would be profitable to make a real estate investment that allows a wide choice in terms of location.
Vitry-sur-Seine is the largest city in the Val de Marne department. Currently, it has around 33,000 housing units, 38% of which are in the social rental stock and 62% in the private stock. Vitry-sur-Seine is a dynamic and lively place. 25% of the city’s total area is made up of green spaces. It is distinguished by its suburban districts and its collective buildings. Vitry-sur-Seine is also rich in infrastructure with its industrial, tertiary and commercial activities. This, without forgetting its social, cultural and sports facilities.
With the main line project, Vitry-Sur-Seine will benefit from two stations which will open in 2024. These are Ardoines and Vitry center. With regard to the real estate market, the market is not yet sufficiently developed. This is explained by the price of real estate which is still at 3,531€/m2 and the annual price only shows a rate of 0.3%. Despite this relatively low price, it is considered that the activation of the network should surely precipitate the rise in housing prices.
With more than 30,000 students, Créteil is considered a major student city located in the Paris region. Créteil hosts the faculty of medicine, law and the University of Paris-Est Val de Marne. It also benefits from the potential of research units such as CNRS and INSERM. Rental demand is consistently high with tenants who are young students. With nearly 90,000 inhabitants in the city itself, the price of an apartment is 3500€/m2. On the other hand, there is a change in market prices of 3.8% over one year.
Apart from these cities, it was considered that many other areas have strong potential for rental investment thanks to the extension of the Express railway lines. Such is the case for Villejuif. It has good infrastructure as well as green spaces. Villejuif also benefits from a hospital center. It is for these different reasons that it is so appreciated by families. Today, line 7 and the tramway connect Villejuif to Paris. But with the arrival of the Grand Paris Express, it will have more tracks which will allow it to be connected to Orly, Gare de Lyon and Saint-Lazare. In terms of real estate investment, prices have not yet increased in Villejuif. This presents great rental yield investment opportunities.
Municipalities such as Gennevilliers will also benefit from a new real estate program with the arrival of the #15 metro line and the connection with the RER C. Also, the development of the transport network is leading to strong development of the real estate market in sectors that are currently poorly served.
Original article published on Investissement-locatif.com by Mickael ZONTA