Lokimo’s 2021–2025 study finds France’s average rental yield rebounded to 4.78% in 2025. Grenoble leads at 5.72%, Paris lags at 3.91% — where investors should focus.
Rental returns across French cities showed widening gaps in 2025, with the Alpine city of Grenoble emerging as the most profitable market, according to a Lokimo study covering 2021–2025. The report, compiled by Lokimo co-founders Martin Noël (CEO) and Binta Gamassa (CTO), finds a national rebound in gross rental yield to 4.78% after two years of decline — but large territorial differences mean location matters more than ever for investors.
Top performers and key figures
• Grenoble: 5.72% gross yield — price €2,595/m², rent €12.36/m²
• Marseille: 5.38% — price €3,234/m², rent €14.46/m²
• Montpellier: 5.23% — average rent €14.84/m²
• Nice: 4.91% — price €4,650.8/m²
• Toulouse: 4.69% | Lille: 4.55% | Rennes: ~4.3% | Strasbourg: ~4.1%
• National average (2025): 4.78%
• Paris: lowest yield at 3.91% despite the highest rent (€33.3/m²); price €10,241/m²Why yields are recovering — and diverging
Lokimo attributes the national recovery to stabilisation after a dip in 2022–2023. Still, the report highlights growing disparities driven mainly by purchase-price differences. Paris typifies the paradox: extremely high rents are not enough to offset sky-high purchase prices, leaving the capital with the weakest gross returns. The gap between Grenoble (5.72%) and Paris (3.91%) is 1.81 percentage points. For roughly the price of a Paris studio, an investor can buy a three‑bedroom in Grenoble with markedly better yield — illustrating why smaller, dynamic cities are attracting attention.
Which cities suit which strategy
• High-yield bets: Grenoble, Marseille and Montpellier — lower prices per m² and solid rental demand make them top choices for yield-focused investors.
• Stability and long-term hold: Toulouse, Lille, Rennes, Strasbourg — steady returns (4.1–4.69%) and lower vacancy risk suit capital preservation strategies.
• Niche/long-term plays in expensive metros: Paris, Lyon and Bordeaux — high prices constrain short-term yields; investors should look for micro‑niches (small units, up-and-coming neighborhoods) and adopt a long-term horizon.Practical takeaways for investors
Lokimo’s analysts recommend diversification: pair high-yield regional buys with stable metropolitan assets to balance cash flow and capital appreciation. Due diligence should focus on local rents vs. purchase prices, job and student markets, and vacancy trends rather than headline demand alone.
Context and trends
The study references 2021 as a historic benchmark (national average then 4.95%, with Marseille at 5.95% and Grenoble 5.76%). Paris reached a low point in 2022 (around 3.54%), and although some improvement has occurred, the capital remains the least profitable city for gross yields in this ranking. With prices still uneven across France, Lokimo’s message is clear: targeted location choice and portfolio diversification are essential to optimise rental returns in 2025.
