For the luckiest, or for those who have a good handle on the market, any rent collected from their second property can be used to pay rent on their main residence. Many Parisians also buy outside of Paris, or in the suburbs, and remain tenants in the city. “It’s more of an investment for inheritance purposes,” confirms Bassel Abedi, head of Rendement locatif. “We buy because we think of our children who may be able to live there during their studies, or when they’re older… We know it’s an asset that will lose little to no value.” “We don’t buy in Paris for the profitability,” confirms Maël Bernier, from Meilleur Taux. Vimont sees a very simple explanation for this: “Rental profitability is losing its importance: the aim is to invest in order to build up assets.” According to Century 21, these investments account for 31% of purchases (+8.8% in 2019). In Paris, where, in theory, buying to rent makes less sense with ever-increasing prices and rent caps, investors nevertheless continue to flock. Outside of Paris, the highest concentration of rental investments can be found in Seine-et-Marne and Essonne where they account for more than one in four property purchases. The increase has been most significant in recent years jumping from 13.1% in 2017 to 17% in 2018 and finally to 22.2% in 2019. In 2009, rental investments represented only 10% of purchases made in Ile-de-France. “In two years, they’ve increased by 69% in the region, 45% in Paris,” continues Vimont, adding that, as far as investments are concerned, “real estate is becoming the undisputed gold standard.”
And Ile-de-France, despite prices that continue to rise, is not to be outdone: rental investments represented, in 2019, more than one in five acquisitions. According to the real estate network, more than one out of every four real estate acquisitions in France is a rental investment. “We’ve never seen anything like it,” says Laurent Vimont, president of Century 21. Rental investments in Ile-de-France are increasing at unprecedented levels. In two years, rental investments have jumped 69% in Ile-de-France, according to Century 21.
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