Investing in real estate in the Loiret: what rental yield can you expect?

The Loiret is one of the departments of France where there are still some investment opportunities in new properties. Even though the situation is difficult, construction has not completely stopped. However, it is not necessarily this type of property that investors will currently position themselves on. According to the Real Estate Observatory of the Center Ocelor region, the average price per square meter of new buildings stands, in the Orléans sector, at €4,092 in the first quarter of 2024. A value down 4%, but which remains significantly higher than the 2,500 €/m2 recorded on average in existing real estate.

A studio or a T2

The investor looking for clear and stable profitability is happy to look for a small apartment, a studio or a T2. He generally entrusts rental management to an agency and is content to collect the profits. For this type of operation, the entry ticket into the Orléans metropolitan area is around €50,000. This is the first price, for example, for a studio of around twelve square meters in the city center. A property that can be rented, at least, €350/month for a gross profitability close to 8.5%.

Rent a furnished apartment

A little larger, better located, with better services, the studio or T2 in the urban area can go much higher in the price range. But rents can follow, up to €600 for the most beautiful rooms, in the heart of the city.

An investment property

Investors who have a six-figure budget and/or who don’t mind taking on some work also have great opportunities in the Loiret. For example, an investment property comprising seven rented accommodations, near the tram, was recently offered for sale for €470,000. The €3,500 monthly rent made it possible to achieve a profitability close to 8% gross. We will find the same type of profitability on the Montargis side, for example, but with a slightly more modest starting investment.

Choosing properties with work

Finally, note that properties classified F and G represent, according to the Fnaim barometer, 12% of DPE carried out in Orléans. They should not be neglected when making an investment. The new zero-interest loan and energy renovation aid make it possible to partly finance the work. This authorizes the acquisition of a more important property which will be enhanced by the work carried out.

Investing in rented accommodation, why is it profitable?

The expert’s opinion: Christian Camus, Valloire Habitat

Is investing in social services a solution to buying new things?
The price differential between the social sector and the so-called free sector can range from 15 to 40%. Today, we are offering a T2 in the Orléans metropolis at €104,000, while this type of property can be worth €180,000 on the traditional market. So yes, it is worth at least looking at our offers.

How do you manage to offer such prices?
Social housing is subject to VAT of 5.5% instead of 20%, which results in an automatic gain of 15 points. If, in addition, you buy under a real joint lease (BRS), you also remove the cost of the land that you are not buying outright. And there we arrive at a discount of 35 to 40%. And, contrary to what is often believed, almost three out of four French people are eligible for social accession. This is the case, for example, for a couple with a child who declares less than €67,517 of income. And then, let’s not forget that all social housing, including individual houses, are eligible for the zero-interest loan (PTZ).

Why are buyers still cautious?
The most informed know the interest that there can be. But it is true that there remain preconceptions regarding social accession. But the housing we offer are properties that could be offered by any developer. They meet exactly the same construction and quality standards and can, of course, be personalized.

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