Property Abroad
Blog
French information council: parking, basement, forest... these investments remain profitable even during a real estate crisis

French information council: parking, basement, forest... these investments remain profitable even during a real estate crisis

French information council: parking, basement, forest... these investments remain profitable even during a real estate crisis

While the secondary real estate market has slowed significantly this summer, with real estate prices rather on the decline, there are investments whose returns remain strong.

The crisis in the French real estate market continues to intensify and prices are falling strongly: by almost 5% in Paris, 10% in Limoges and even 15% in Amiens over the year.

How to invest in this time of crisis? franceinfo offers you other types of investments, some of which are low cost.

Real Estate:

For example, you can buy a maid's room or a studio. Prices are quite affordable and the yield is high: from 4 to 6% per year. For this, focus on university towns where the demand for rentals is strong and prices are more attractive. For example, a 20-square-meter studio will cost less than €59,000 in Strasbourg and Toulouse, €65,000 in Lille and even €69,000 in Nantes.

Parking:

If it's still too expensive, you can buy a parking space. This is a very good investment for a small budget! Such an investment will cost around 10,000 euros, except in Paris where a parking space can exceed 50,000 euros. The yield is between 4 and 11%. You take no real risks, you don't need to have a down payment to borrow, and there are no additional costs. To maximize your income, you can even rent out the space to multiple motorcycles.

Recommended real estate
Buy in France for 346000€

Sale flat in Saint-Denis 373 625 $

3 Bedrooms

2 Bathrooms

109 м²

Buy in France for 79500€

Sale flat in Saint-Aubin-les-Elbeuf with city view 85 847 $

2 Bedrooms

1 Bathroom

68 м²

Buy in France for 145000€

Sale flat in Corbey-Eson with city view 156 577 $

1 Bedroom

1 Bathroom

46.50 м²

Buy in France for 195000€

Sale flat in Saint-Denis 210 569 $

2 Bedrooms

1 Bathroom

48 м²

Buy in France for 176200€

Sale flat in Rowan 190 268 $

2 Bedrooms

1 Bathroom

61 м²

Buy in France for 520000€

Sale flat in Nice with sea view 561 518 $

2 Bedrooms

71 м²

If you want to invest in parking, prefer stressed areas, that is, where it is difficult to find a parking space, choose a spot in the basement, near an elevator or pedestrian exit.

Basement:

Another popular type of investment is buying a basement. The cost of entry remains very reasonable. About 5000 euros for a basement in an average city. The return is three times higher than for real estate investments: about 6 to 10% per year depending on the city. Today, the demand for rentals is strong, with many people lacking space and turning to basement rentals to store furniture or personal belongings.

Forest:

It is also possible to invest in the forest! This is an interesting investment that contributes to the preservation of nature. The average cost of buying a hectare of greenery is about 4410 euros. The return is between 1 and 3%, but it is prone to change due to rising timber prices. Such investments also offer tax advantages, such as a tax credit of 18%: profitable and environmentally friendly! Incidentally, this works quite well, as three quarters of the forests in France are owned by just over 3.5 million private owners.

Comment