Les villes où investir en 2022

Most Profitable Cities to Invest in 2022 – Ace Credit

To prepare for retirement, build a legacy, supplement your income or tax relief, rental properties remain an ideal method. Back to the ranking of the currently most profitable cities.

Invest in rental property

To find the city in which to invest, there are two main indicators in addition to purchase prices and average rents: Gross rental yield and vacancy rate. This data is specially examined by investors in search of the most profitable place to invest in rent. By taking these criteria into consideration, it is possible to find the city with the best profitability while reducing the risk of unoccupied housing.

Rental yield and vacancy rate, two main indicators

Gross rental yield is the ratio that measures the total income from rental property in relation to purchase price and cost. This makes it possible to measure the profitability of a rental investment (before taxes). Practically, to calculate this, you only need to divide the annual rent by the price of the rental property multiplied by one hundred. You should know that a The total return is generally interesting when it goes above 5 to 6%. The vacancy rate makes it possible to know the share of vacant housing in the city. Calculated by INSEE, the average vacancy rate nationally is around 8%. Of course, the high vacancy rate means that it is difficult to find a tenant to occupy a property. It is estimated that a vacancy rate of less than 5% guarantees an investor will find a tenant.

Poitiers, Nîmes, Marseille and Montpellier, are among the profitable cities to invest in

FNAIM was based on average apartment rents observed in each city, as well as average purchase prices for these homes, according to the Clamore database. Based on these data, Capital has chosen Toulon, Brest, Dijon, Limoges, Clermont-Ferrand, Poitiers, Marseille, Nîmes and Montpellier as the most attractive cities for rental investment. These municipalities offer The most interesting ratios between rental yield and vacancy rate. Nice, which has a very high vacancy rate (14%), was not included in the selection, as were the cities of Reims and Amin, which show high returns, but vacancy rates are slightly above average. Before embarking on a rental investment project, it is essential to know your ability to borrow. For this, there are simple, free, and non-binding tools that allow you to get a first idea. For a more accurate study, it is recommended to use a mortgage broker who optimizes the financing profile and negotiates the most advantageous terms according to the borrower’s profile.

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