Explore the strategic advantages of investing in cellars in France, with yields of 9%, significantly surpassing traditional real estate’s 4%.
As the real estate landscape continues to evolve, alternative investment opportunities are gaining traction, particularly in urban centers like Paris. Among these, investing in cellars has emerged as a surprisingly lucrative option. According to Jestocke, a leading real estate platform, the trend of investing in cellars is not only profitable but also accessible, especially in the context of skyrocketing residential rents. With a gross yield of approximately 9% in the capital, the question arises: is investing in a cellar still a smart move in 2025, or are we witnessing the market’s peak?
Profitability 2025: A Return That Defies Traditional Real Estate
An Average Rate of 9% in the Capital
In an era where rising interest rates are dampening the profitability of traditional residential real estate, investing in a cellar presents a strategic alternative. As of 2025, the average gross rental yield for a cellar in Paris stands at an impressive 9%, as reported by Jestocke. This figure significantly surpasses the average yield for conventional real estate, which hovers around 4%, even in high-demand areas.
The high profitability of cellars can be attributed to several factors. Firstly, the entry cost is relatively low, as cellars typically occupy smaller areas and have a lower price per square meter compared to conventional housing. Secondly, there is a sustained demand for rental space, particularly in densely populated urban areas. Lastly, maintenance costs for cellars are almost negligible, allowing investors to optimize their net profitability.
Ultra-Profitable Districts
While the average yield is impressive, it conceals notable disparities across different arrondissements. In the 13th, 14th, 19th, and 20th arrondissements, profitability can soar to 11%. This is primarily due to more affordable purchase prices combined with relatively high rental rates. Such levels of profitability make cellars an attractive investment option for those seeking diversification or alternative investments in the short to medium term.
Price Developments: General Stability, but Local Disparities
Stable Prices Around €2,745/m²
In 2025, the average purchase price for a cellar in Paris is approximately €2,745 per square meter, a figure that has remained stable for the past two years, according to Jestocke. This stability is particularly noteworthy given the volatility often seen in the real estate market, exacerbated by inflationary pressures on materials and maintenance costs.
The Historic Centre Remains the Most Expensive
However, this average price masks significant disparities between different arrondissements. The historic districts of Paris remain the most expensive, with prices reaching:
- 4th arrondissement: €3,484/m²
- 3rd arrondissement: €3,215/m²
- 2nd arrondissement: €2,963/m²
Investors should note that peripheral arrondissements can offer better return/accessibility trade-offs, making them appealing options for smaller investors.
Rental Demand: Storage as an Alternative to Expensive Housing
Strong Pressure Linked to the Housing Crisis
The ongoing housing crisis in Paris has created a pressing need for storage solutions. As apartment sizes shrink and residential rents continue to rise, an increasing number of Parisians are seeking additional space. By March 2025, the average rent for a cellar in the capital reached €21 per square meter, with rates climbing to €24 per square meter in the 4th arrondissement and €23 per square meter in both the 2nd and 3rd arrondissements.
Smaller, but Highly Demanded Areas
Interestingly, the average leased area for cellars has decreased from 8 square meters in 2024 to 6 square meters in 2025. This trend reflects a dual phenomenon: a growing demand for affordable storage solutions and a higher turnover of tenants. Between 2023 and 2024, the supply of cellars for rent surged by 8.7%, indicating a rising interest among owners in this form of real estate investment. Furthermore, rental demand skyrocketed by 17% in January and February 2025 compared to the same period in 2024, underscoring a shift in urban consumption habits.
Paris vs. Province: Where to Invest in a Cellar in 2025?
Profitability Often Higher in the Provinces
While Paris remains a secure investment hub, the provinces may offer even more lucrative opportunities for cellar investments. Many major French cities boast higher gross profitability rates than the capital, thanks to lower purchase costs and rapidly growing demand. Cities such as Marseille, Lille, and Montpellier present attractive investment prospects.
In Marseille, for instance, the purchase price per square meter is significantly lower than in Paris, yet storage rents remain high due to urban density and limited alternatives. Lille benefits from a young, mobile population often faced with cramped living conditions, while Montpellier’s demographic and real estate dynamism fuels a constant demand for urban storage solutions. Additionally, lower condominium fees, property taxes, and related costs in these cities enhance net profitability for investors.
Rents on the Rise in Several Cities
Between 2023 and 2025, rents have increased by €1 to €2 per square meter in several major cities, including Lyon, Nantes, Montpellier, and Nice. This upward trend suggests significant development potential in the years to come.
Outlook 2025: Why Investing in a Cellar is an Investment for the Future
In an uncertain economic climate, investing in a cellar proves to be a resilient strategy that is less susceptible to market fluctuations. Unlike traditional residential or commercial real estate, this type of investment is based on a straightforward, functional product that does not carry excessive costs.
One of the primary advantages of investing in a cellar is its low entry cost. Prospective investors can acquire a cellar in Paris or a major provincial city for less than €20,000 to €25,000, a stark contrast to the budgets required for purchasing a studio or commercial space. This accessibility attracts a diverse audience, including first-time investors, retirees looking to diversify their assets, and young professionals seeking manageable and profitable investments.
Moreover, maintenance costs for cellars are minimal. There are no technical systems to maintain, no major renovations required, and no co-owners to contend with regarding nuisances or property-related issues. Consequently, net profitability often closely aligns with gross profitability.
Constant Rental Demand
The demand for cellars remains steady, as they fulfill essential needs for storing furniture, boxes, and personal or professional equipment. In a context of reduced living spaces—such as studios, shared flats, and teleworking arrangements—these storage spaces have become indispensable extensions of the home.
Additionally, the risk of non-payment is notably low, as monthly rental amounts typically range from €80 to €150. This reduces reliance on a single tenant and minimizes turnover challenges. In the event of a vacancy, the rental process is swift, aided by specialized platforms like Jestocke that enhance visibility and streamline transactions.
Flexible Legal Framework
Investing in cellars also benefits from a more flexible legal framework. Unlike traditional residential leases governed by the ALUR law, cellar rentals allow investors greater freedom in setting rents and managing contracts. This adaptability is further supported by Jestocke’s sustainable model, which emphasizes the reuse of existing spaces.
In conclusion, investing in a cellar in Paris in 2025 remains a compelling opportunity for both seasoned and novice investors. With an attractive average gross yield of 9%, stable prices, and a growing demand for storage solutions, cellars present a unique alternative to traditional real estate investments. While the market may exhibit some signs of cooling, the fundamentals supporting cellar investments—low entry costs, minimal maintenance, and constant rental demand—suggest that this niche market will continue to thrive in the coming years. As urban living conditions evolve, the need for accessible storage solutions will only intensify, making cellars a smart investment choice for the future.
