Investing in real estate in Nevers and Nieuwere: where, why and how?

The real estate prices in Nièvre, as well as its administrative center of Nevers, are attractive to investors. Investing in this region is a great idea. Nièvre is one of the cheapest departments in France, the average cost per square meter here barely exceeds 1000 euros. According to Fnaim data (as of July 2023), it stands at €1,050, of which €962 is for apartments and €1,072 for houses.

At the same time, the rental housing market is active and continues to grow (+5.2% over five years according to Fnaim), especially in an environment where initial buyers are finding it difficult to buy their own homes and are forced to stay in rentals. It's a wonderful contribution to the future. In addition, investing in real estate in Nieuwere, especially in Nevers, is a promising investment for the future. Given the economic activity, geographical location and quality of life in the city, experts believe that real estate prices here are still undervalued. A properly selected and well-maintained property should increase its value in the coming years. The yield is around 8.5%.

The cost of entry for an investment in Nieuwre is around €35,000. For this price, you can purchase a studio in a mid-range upscale apartment complex in downtown Nevers. Such housing can be rented out at a price of about 230-250 euros per month, which is a yield of about 8.5%. Investors with a lot of money who are not afraid of renovations may choose to purchase a building for complete remodeling. The cost of such properties varies from 500 to 1000 euros per square meter depending on the condition, to which, of course, should be added the cost of repairs.

Like in many provincial cities, the market for new buildings is in waiting in Nièvre. It is difficult to find a program to invest in, and it is difficult for developers to achieve the required 50% commercialization to start construction. Land costs between 25 and 50 euros per square meter. The opportunity for custom construction remains. Of course, the cost of building here, as elsewhere, has increased due to rising raw material and energy prices, but this is particularly offset by the low cost of land.

Expert opinion: Manuel Pauron, real estate agent

Who are the investors who choose Nieuwre for investment? There are several types of profiles. There are so-called "good fathers of the family" who want to invest some money and create equity. They are looking for an inexpensive place to live, such as an apartment, with minimal work. More experienced investors are actually looking for income. They may look for properties with renovations to lower the price and take advantage of tax incentives. We meet a lot of clients from Paris. The rental market is much more favorable here. But we also have local investors.

How much does the energy performance certificate affect prices? Yes, because the investor is primarily looking at the financial result of his operation. With a Class F and G building, if he buys for 100 and spends another 50 on work to make the house rentable, his estimated basis would be 150. For a facility without work, investors may tolerate a Class E building, but of course a Class D building is preferred.

Is the rental housing market mature enough to support this investment? If the property is in good condition and well located, it can be rented out with no problem. But tenants are also very attentive to energy efficiency. They are looking for, at a minimum, class E objects. It should be noted that the seasonal furnished rental market is not very developed here.

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