Discover the best French cities to invest in real estate in 2025. See why Nice, Perpignan, and Montpellier lead the way, which cities to avoid, and where you’ll find the highest rental yields for studios and two-room apartments.
Best Cities to Invest in France 2025: Top Rental Markets & Which to Avoid
The French real estate market in 2025 promises attractive rental opportunities, making it crucial for investors to identify the right locations for maximum profit. New research from Guy Hoquet and Bien’ici reveals the best—and least favorable—French cities for real estate investment, focusing on studios and two-room apartments. Here’s your complete guide to smart property investment in France for 2025.
Nicest Places to Invest: Nice, Perpignan, and Montpellier
Nice crowns the ranking for the most attractive destination to invest in small rental properties. The city boasts strong rental demand and a steady supply of studios and two-room apartments. Despite higher purchase prices (around €166,858 for studios and €271,572 for two-room apartments), investors can count on rental pressure to support yields of 4.82% and 4.30%, respectively.
Perpignan distinguishes itself with standout affordability and exceptional yields. With studio prices averaging just €58,974 and yields up to 7.84%, Perpignan is an ideal choice for investors targeting maximum return on a modest budget. Two-room apartments also offer an attractive average yield of 6.78%.
Montpellier completes the top trio, especially shining in the two-room market. For a typical investment of €174,975, buyers can expect a yield of 4.49%. The city’s dynamic rental market makes it excellent for securing reliable tenants.
Surprising Contenders & Reliable Classics
- Paris: Despite high entry costs (average studio price above €240,000), Paris is ranked third for studios thanks to solid rental demand and strict rent regulation, offering security for cautious investors. Rental yield averages at 3.99%.
- Saint-Étienne: For studio buyers with a limited budget, Saint-Étienne stands out, offering an attractive yield of 7.81% and average purchase cost of only €64,488.
- Marseille: In the two-room segment, the city delivers stable profitability (5.15%) and robust rental pressure.
Medium-sized cities like Limoges and Besançon also present golden opportunities for first-time investors with low purchase prices (typically €60,000-€75,000) and solid yields.
Cities to Avoid: Annecy
At the other end of the spectrum, Annecy sits firmly at the bottom for both studios and two-room apartments. Despite being a picturesque city, Annecy’s high acquisition costs (over €191,000 for a small unit) and poor yields make it an unappealing investment in 2025.
Top 4 Cities to Invest in a Studio (2025)
| Rank | City | Avg. Budget | Rental Yield |
|---|---|---|---|
| 1 | Nice | €166,858 | 4.82% |
| 2 | Perpignan | €58,974 | 7.84% |
| 3 | Paris | €240,778 | 3.99% |
| 4 | Saint-Étienne | €64,488 | 7.81% |
Top 4 Cities to Invest in a Two-Room Apartment (2025)
| Rank | City | Avg. Budget | Rental Yield |
|---|---|---|---|
| 1 | Nice | €271,572 | 4.30% |
| 2 | Perpignan | €88,733 | 6.78% |
| 3 | Montpellier | €174,975 | 4.49% |
| 4 | Marseille | €175,813 | 5.15% |
Investment Tips for 2025
- Assess Rental Demand: Prioritize cities with strong and consistent rental demand.
- Balance Yield and Budget: Evaluate whether a higher yield (e.g., Perpignan, Saint-Étienne) offsets lower capital appreciation compared to pricier markets like Paris and Nice.
- Avoid Overpriced Markets: Be cautious with cities like Annecy, where high prices erode rental profitability.
- Target Small Units: Studios and two-room apartments often deliver higher occupancy rates and returns.
France’s real estate market in 2025 will be packed with opportunities—not only in major cities but also in emerging, affordable segments. Nice, Perpignan, and Montpellier shine as top destinations, while Annecy is best avoided. No matter your budget, keep a keen eye on rental yields, city dynamics, and market trends to ensure a successful property investment in France.
