Investment for rent: which areas should be preferred near universities and colleges?

Which areas to invest in near universities and colleges? Manuel Ravier and Mikael Zonta, co-founders of Investissement-locatif.com, analyze the demand for real estate for students.

Real estate investors are particularly interested in investing in small areas and locations, as these types of housing offer the best rental income on the market.

There is a high demand for rent among students, especially if we know that student residences (CROUS) do not have enough housing compared to the current demand, CROUS has only almost 170,000 places available.

Cohabitation is also the best type of accommodation for students: economical and comfortable for tenants. From the point of view of landlords, joint lease allows you to limit the risks due to the large number of tenants, and also allows you to benefit from multiple lease payments.

The study, conducted by Investissement-locatif.com, concerns French student cities:

  • Paris
  • Lyon
  • Marseille
  • Bordeaux
  • Lille
  • Nantes
  • reindeer
  • Toulouse
  • Montpellier
  • Rouen
  • Saint-Etienne
  • Metz
  • Nancy
  • Reims

Paris, 720,000 students: Where to invest?

Paris is a city valued by students, with more than 720,000 students, 13% of whom are foreign. The growth of the student population is significant: + 19.60% of students in 10 years.
The reputation of its higher education institutions, its strength of attractiveness and the attractiveness of graduates in France and abroad make it a safe city in terms of student demand.

Three of these higher education institutions are included in the World Higher Education Rankings (THE Higher Education).

  • Paris Polytechnic Institute
  • University of Paris-Sorbonne
  • PSL University of Paris

For example, buying a studio at 11and the district (rue Godefroy Cavaignac) will cost 361,440 euros. Annual rental income will bring 14,400 euros, or 3.98% of gross margin.

Lyon, 2and the best student city

With almost 175,000 students, Lyon became the second best student city according to the l’Etudiant website for 2021/2022. The quality of education and diverse offerings make the metropolis an ideal place to study. Thanks to the large number of cultural services, which include more than 800 museums, libraries, festivals and other cultural places, students are looking forward to a lively student life. The speed of integration after the master’s degree contributes to the fact that the city becomes peaceful.

Thus, at an average price of € 5,300, investing in a studio or shared accommodation in one of the above areas is very profitable. Indeed, the T4 has an area of ​​65 m2and arrondissement (rue Thomas Blanchet) can be purchased for 298,750 euros. Annually, it brings in 17,100 euros in rental income, ie a gross profit of 5.72%.

University of Marseille, the largest concentration of students

Marseille is known for hosting the University of Aix-Marseille (AMU), one of the largest universities in France (more than 70,000). The offer of education is wide, as it includes more than 2,000 higher education courses. The RTM transport network allows students to easily travel to different school camps and cultural sites. Climate is also an important property that cannot be denied.

In Marseille, Adolf Thierry Street is 1is district 3-room apartment of 54 m2 can be bought for 170,342 euros. This brings an annual rental income of about 12,600 euros, a gross profit of 7.4%.

Bordeaux, where to invest?

The Bordeaux metropolis has many higher education institutions, such as Bordeaux Montaigne University or the Polytechnic Institute of Bordeaux. All training is presented: technological industries, engineering, politics, many business schools, hotels, art …

The pleasant living environment offered by the city has made it famous, and students will be able to enjoy a high quality of life. In Bordeaux, Cour de la Somme Nansouty, the 21.5 m2 studio sells for 168,793 euros and generates an annual rental income of 8,400 euros, a gross profit of 4.98%.

Lille, a recognized student city

Every year, Lille welcomes more than 100,000 students who continue to present the city as welcoming and offer a wide and varied choice in terms of learning. It houses three universities that are ranked among the top 500 QT Top Universities. Lille’s transport network is such that trams provide easy access to Roubaix or Turkun. Its location gives students the opportunity to travel at a low price and get to London, Brussels and Paris in 1 hour.

Rue de la Plaine Moulins in Lille a T1 Bis (26.7 m2) is available for 156,447 euros. This gives a profit of 5.06%, ie an annual rental income of 7920 euros.