Saint-Etienne obviously benefits from the very flattering price differential with the Lyon metropolitan area. The average price per square meter here does not exceed €1,500. For apartments, it is even €1,312 according to Fnaim (July 2024 figures), by comparison, it is almost €4,300 in Lyon. At the same time, the rental market is particularly dynamic, with rents at €11 per m2 per month on average, up 8.1% over one year. The rental profitability outlook is therefore very positive.
A little over €30,000
The first studios in the Saint-Etienne area cost a little over €30,000 but most investments are between €40 and €50,000. Sold rented and furnished, with beautiful restoration and a popular location, you can even approach the €60,000 mark. Rents are mostly between €400 and €500/month and make it possible to finance such an investment. Especially since the number of students, who are already more than 30,000 in Saint-Etienne, continues to increase.
Saint-Etienne obviously
Investors have every interest in also taking an interest in larger areas. Saint-Etienne is an economically dynamic city and it is, moreover, the cheapest city of more than 100,000 inhabitants in France.
Due to the catch-up that prices are sure to make in the years to come, capital invested in the urban area can only increase in value over time.
Roanne, a good idea too
But Saint-Etienne is not the only essential center for rental investment in the Loire, the Roanne sector continues to assert itself. On smaller volumes, the northern Loire sub-prefecture has quite similar characteristics. For a studio in the city, you will have to pay between €40 and €65,000, for rents of €350/month on average.
Rental returns above 7%
Roanne also offers investment opportunities for larger budgets. An apartment in the city center, offering four bedrooms which can be offered as shared accommodation, sells for between €200 and €250,000, for an estimated annual rental income of €17,000. The gross profitability is therefore between 7 and 8.5% for a property which, moreover, constitutes an asset expected to increase in value.
Buy an investment property
There remains the possibility of the investment property. We regularly find them for sale in Roanne. Some do not require work and can be offered for immediate rental, traditional rental or tourist rental. But the latest developments in zero-interest loans should encourage investors to look at properties with work. In Roanne, some can offer very good possibilities for a budget of between €150 and €200,000.
The expert's opinion: Corinne Chapelon, Le Toît Forézien
Can you remind us of the principle of the rental-ownership social loan?
This system was designed to help with the purchase of new housing. The rental-accession contract, signed with the notary, begins with a rental phase which lasts at least 6 months. For us, it's a year. During this period, buyers pay rent, at a loss, and an acquisitive share which is then deducted from the amount of the sale. At the end of the period, the occupants can exercise the option and sign an authentic deed of sale or decide not to purchase. In this case, they will have to leave the premises and the lessor will offer them three possibilities for rehousing.
Who has the right to this device?
The resource ceilings were significantly increased in 2024. A typical household, comprising two adults and two children, is eligible for up to €63,346 in annual income, which represents a very large part of the French population.
But, with this system, there is no possibility of rental investment…
No, the essential condition is to make the acquisition your main residence. Unless there is a change in life (divorce, change of job, etc.), you should not sell before 10 years. Otherwise, the State demands a VAT and property tax catch-up which cancels the benefit of the operation. But beyond this period, the buyer is free to do what he wants.
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