Ranking of French Cities by Rental Yield

In 2026, the French real estate market shows growing disparities between cities. Some, such as Grenoble and Marseille, offer attractive rental yields thanks to accessible markets and strong demand. Others, like Paris, lag behind despite high rental demand, due to prohibitive prices per square meter.

Conducted between 2021 and 2025, this analysis reveals a significant increase in gross rental yields, with marked differences across regions. Despite its status as the capital, Paris shows the lowest average yield (3.91%), while cities like Grenoble (5.72%) and Marseille (5.38%) stand out for their attractiveness to investors.

The analysis is organized around four key points:

1 – A Slight National Recovery in Rental Yields

After two years of decline, the rental market shows signs of stabilization and a modest recovery since 2024:

• 2021: Best year for yields (4.95%), with remarkable performance in Marseille (5.95%) and Grenoble (5.76%).

• 2022–2023: General decline, particularly in Paris (3.54% in 2022).

• 2024–2025: Moderate rebound (4.78% in 2025), but Paris remains behind with a yield of 4.33% in 2025.

2 – Paris: A Market of Its Own, High Demand but Low Yield

Despite structurally high rental demand, Paris remains the least profitable city in the study:

• Average yield: 3.91% (the lowest in the study).

• Average price per m²: €10,241 (by far the highest, nearly three times higher than Grenoble).

• Average rent per m²: €33.3 (the highest, reflecting very strong rental demand).

Conclusion: Paris embodies the paradox of the French property market: exceptional rental demand, but prices so high that they drastically limit profitability. Investors now need to diversify into cities like Grenoble or Montpellier to optimize returns.

3 – Overview of Major Cities: Where to Invest in 2026?

1 – Grenoble and Marseille: Leaders in Profitability

• Grenoble: 5.72%, price per m² €2,595.2, average rent €12.36/m²

• Marseille: 5.38%, price per m² €3,234, average rent €14.46/m²

Why? These cities offer an ideal balance between yield, rental demand, and affordability.

2 – Montpellier and Nice: Dynamic Markets

• Montpellier: 5.23%, average rent €14.84/m²

• Nice: 4.91%, but very high price per m² (€4,650.8)

Why? Montpellier stands out for a better yield-to-price ratio.

3 – Toulouse, Lille, Rennes, and Strasbourg: Stable and Resilient Markets

• Toulouse: 4.69%, price per m² €3,378

• Lille: 4.55%, price per m² €3,593

• Rennes: average yield around 4.3%, price per m² €3,842, average rent €13.68/m²

• Strasbourg: average yield 4.1%, price per m² €3,865, average rent €13.34/m²

Why? These cities combine economic stability, demographic attractiveness, and moderate risk, making them ideal for long-term investment strategies.

4 – Lyon and Bordeaux: Challenges Similar to Paris

• Lyon: 3.80%, price per m² €4,807.2

• Bordeaux: 4.03%, price per m² €4,641.8

Why? Like Paris, these cities suffer from high prices limiting profitability.

It is crucial for investors to fully understand the specificities of each local market before making a decision. The goal is to provide a clear and precise view of opportunities and risks.

4 – Lokimo Recommendations for Investors in 2026

• Prioritize Grenoble, Marseille, and Montpellier for high yields.

• Focus on Toulouse, Lille, Rennes, and Strasbourg for secure, long-term strategies.

• In Paris, target specific niches: small apartments, evolving neighborhoods, long-term vision.

• Exercise caution in Lyon and Bordeaux for short-term strategies.

Investors are encouraged to diversify portfolios and explore less conventional, but potentially very profitable, markets.

©2026 – IMPACT EUROPEAN

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