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Investing in Paris real estate: how much you can earn from renting in 2025 year

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Paris
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The Paris real estate market is traditionally considered one of the most promising in the EU for generating income. Every year, the capital of luxury and fashion attracts approximately 50 million tourists, while universities draw thousands of international students from around the world.

The 2024 Olympics significantly increased the already overheated rental market in the French capital. By the start of the Olympics, many landlords raised rental prices by 5 times or more. According to an exclusive study by the digital real estate agency Manda on the impact of the Olympics on the rental market in Île-de-France, after the sporting events concluded, rental prices in some areas near Olympic venues rose by 20%, reaching up to €50 per square metre.

Arrondissements

Purchase price (€ per m²)

Monthly rental price (€ per m²)

1 · Louvre

€12,032

€35.8

2 · Bourse

€10,697

€35.8

3 · Temple

€11,234

€36.1

4 · Hôtel-de-Ville

€12,023

€36.2

5 · Panthéon

€11,623

€34.8

6 · Luxembourg

€15,123

€37.3

7 · Palais-Bourbon

€15,032

€37.0

8 · Champs-Élysées

€11,857

€35.0

9 · Opéra

€10,074

€33.8

10 · Enclos-Saint-Laurent

€9,106

€32.0

11 · Popincourt

€9,678

€32.3

12 · Reuilly

€8,900

€30.3

13 · Gobelins

€8,499

€29.8

14 · Observatory

€9,289

€31.4

15 · Vaugirard

€9,116

€31.5

16 · Passy

€11,165

€33.9

17 · Batignolles-Monceau

€9,925

€32.8

18 · Montmartre

€9,420

€29.8

19 · Buttes-Chaumont

€7,537

€28.1

20 · Ménilmontant

€8,023

€28.9

Source: Meilleurs Agents

Profitable Real Estate Investments in Paris

garden
Marcin Krzyzak / shutterstock

According to France’s largest real estate database, Meilleurs Agents, property prices in Paris have risen by 17.7% over the past 10 years. The peak was during the 2020 pandemic, after which prices started to decline.

In 2024, the most popular investment properties are studios in the city centre for short-term rentals and small apartments near universities or metro lines for long-term leases to students and university staff.

Most promising arrondissements:

  1. 5th arrondissement — Panthéon: Close to the Sorbonne University, with rental prices ranging from 27 to 42 euros per sq. metre and an average property cost of 11,623 euros per sq. metre.
  2. 6th, 7th, and 8th arrondissements — Luxembourg, Palais-Bourbon, and Champs-Élysées: Elite areas offering luxurious multi-room apartments and small Parisian studios, with property prices around 15,000 euros per sq. metre and rental prices averaging 37 euros per sq. metre.
  3. 15th, 16th, and 17th arrondissements — Vaugirard, Passy, and Batignolles-Monceau: Former suburbs now featuring classical elite residences, with property prices around 10,000 euros per sq. metre, and rentals at 32 euros per sq. metre.
  4. Additionally, areas such as Boulogne and La Défense, adjacent to the 15th and 16th districts, are promising due to the expansion of the city’s business district. Property prices here average 8,300 euros per sq. metre, while rentals range from 23 to 40 euros per sq. metre.
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The demand for such property far exceeds the supply: many apartments are rented in the first few minutes. The landlord can choose whether the tenant meets specific criteria, including financial and social status. And since only people with high incomes can afford the Parisian standard of living, the risk of financial incompetence on the part of the tenant is almost minimal.

Costs of purchasing property in Paris

business area
StevanZZ / shutterstock

When buying apartments in Paris, registration fees are required. These are transferred to a notary who handles property verification, registration, and the purchase contract. Fees vary depending on whether the property is new (2.5%) or resale (7.5%). Notary fees and formalities also add to the costs.

For example, when buying apartments in a new house worth 650,000 euros, the fees will amount to 13,203 euros. When buying a secondary property of the same value, the fees will increase to 41,640 euros.

After acquiring the property, you’ll also need to pay land tax, residence tax, second-home tax, rental income tax (if renting), and inheritance tax when passing the property to descendants. Some taxes depend on whether the investor is a French resident (living in the country for more than 183 days a year).

Rental income in Paris

Studios yield higher income than medium-sized and large apartments. Below are examples of rental yields for apartments in different city districts.

Arrondis-sements

Studio size (m²)

Purchase price (€)

Monthly rent (€)

Annual costs (€)

Net yield (%)

Payback period (years)

5th District

30

€350,000

€1,044

€1,250

2.86%

35

7th District

30

€451,000

€1,110

€1,332

2.36%

42

15th District

30

€274,000

€945

€1,134

3.31%

30

Boulogne

30

€250,000

€810

€972

3.11%

32

Tranio’s managers can help you select the best property in Paris to match your needs and calculate potential yields.

Contact us
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    Tranio’s managers offer advice on buying real estate in Paris
    Alexandra Borisova
    Alexandra Borisova
    Real Estate Expert Tranio Europe
    +44 17 4822 0039
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