Property rental: where to invest in Ile-de-France amid future metro stations and RER extensions?

In order to maximize the profitability of your rental, there is no secret: targeting the right place to rent your apartment remains a priority. Thus, in Ile-de-France, landlords can look for accommodation with good transport links and therefore easily accessible for future tenants. Some may even predict the opening of new chains, which are likely to open up areas that have been priced down until now! With this in mind, rental investment specialist Beanstock has carried out an unprecedented study of the profitability expected by landlords around the future stations of lines 11, 12, 14 and RER E. On these four lines, expansion projects are already underway, which should eventually lead to around thirty new stations . It is around each of these stations, within a 10-minute walking radius, that Binstock assessed the profitability of landlords who would rent on-site furnished studios with a typical area of ​​20 square meters. And this is according to a clear methodology.

Find out the net return on investment

Therefore, to assess the profitability of such investments around these stations, Binstock first calculated the following costs for the landlord:

  • The average purchase price of a studio of 20 square meters (including the commission of a real estate agency);
  • Transfer duties (often for simplicity they are called notary fees), which here correspond to 8% of the cost of housing;
  • Studio renovations estimated at €12,000 for a standard 20 square meter studio, this amount is based on the average seen for this type of Beanstock accommodation;
  • Rental investor support costs charged at 7.2% of the transaction amount (with a minimum ticket of €10,000).

The rental investor then estimated the expected rental income around these stations by taking the following elements:

  • Average rent amounts (furnished), including fees, determined using Beanstock’s transaction history in each city;
  • If applicable, the rent control limits in these cities;
  • Average amount of rent observed on site;
  • The average local property tax for a studio with an area of ​​20 square meters.

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“The market rents presented here are the result of our own observations on the classifieds sites and our past investments,” explains Mathieu Gavette, Head of Real Estate Research at Beanstock. However, sometimes the actual amount of rent may be higher than the limits allowed in these cities. “We attribute this phenomenon to the fact that most landlords sometimes practice rent surcharges in certain municipalities, causing rents to exceed the rent limits,” he deciphers.

From these elements, Binstock was able to estimate the net return (before tax) that landlords in these areas can expect. Thus, Beanstock takes into account local variables such as property tax, rent or “notary fees” to estimate the actual yield that is closest to reality. Discover in our infographic the future stations where the expected return is the most promising and those where it will remain relatively moderate.