L'investissement locatif à Lyon, une évidence pour les investisseurs avertis

Key figures :

• Prix au mètre carré : 5 350 € pour un appartement (de 3 672€ à 6 915 €) 
• Average monthly rent : From 9 € to 16€ per m2 depending on the property and the area.
• 2nd largest student city in France
• Average gross yield: from 3 to 6% depending on the neighbourhood

L'investissement locatif à Lyon s'impose comme une évidence pour l'investisseur immobilier qui recherche une ville attractive et un rendement locatif intéressant. En effet, cette métropole arrive à la 2ème place du palmarès des villes françaises où investir. Lyon bénéficie d'un positionnement géographique stratégique : à 2 heures de Paris, de Genève et proche de l'Italie. Cette position en fait depuis toujours un carrefour de l'Europe. Son économie est forte et son implantation au cœur de la région Rhône Alpes Auvergne (anciennement Rhône Alpes), 2ème région de France pour son PIB, lui assure un excellent dynamisme économique dans le futur.

I am Mickael Zonta, director of Investissement-Locatif.com and real estate investor. Passionate about real estate and investment, I would like to share with you my knowledge of the Lyon market. In this article, you will discover the important points to consider if you want to invest in rental property in Lyon. Where to buy in Lyon? What is the price per square metre in Lyon? We will also look at the questions that investors often ask, the first of which is where to invest in Lyon... and conversely, which districts to avoid in Lyon. Finally, we will look at the various empty and furnished rental schemes in the light of the Lyon market, in order to help you decide which is the best tax exemption scheme for rental investors in Lyon.

Real estate investment in Lyon: economic advantages for a long-term investment

One of the first things to consider for any property investor is the level of economic dynamism of the investment location. Lyon is a good example of this. Before investing, ask yourself: how is the job market doing? Is the economic fabric well developed? Does the region have a pool of jobs and companies... or is the only employer a factory that is nearing the end of its life? These questions need to be addressed before you even look at the housing advertisements in the newspaper. A profitable investment over time requires a tenant who pays the rent and I always advise against investing in the countryside if the economic fabric is not solid. By definition, tenants must be able to pay their rent.

In this respect, Lyon has some serious advantages and this is what makes real estate in Lyon so attractive. First of all, it is the capital of the Rhône Alpes-Auvergne region, which is the second region after the Île-de-France in terms of GDP. It is therefore logical that Lyon has a strong economic dynamism with many companies in all sectors, particularly in new technologies.

Economic dynamism : 

• Unemployment rate Q1 2019: 7.7% (national average: 8.6%)
• French Tech Label
• France's 2nd largest economic hub and one of the top 20 richest cities in Europe
• France's leading healthcare cluster: Lyonbiopole and 2nd largest logistics region in France
• 2nd largest city for congresses and trade fairs at the national level
• 5 competitiveness and research clusters, 2 of which are world class

Après ce premier élément, vous devrez analyser le dynamisme démographique. Si le lieu d'investissement se vide de sa population, alors la demande locative baissera... Sur ce point également, la métropole lyonnaise fait figure d'exemple. La population lyonnaise a connu une croissance moyenne de 1,1 % par an sur les cinq dernières années (source INSEE). La métropole de Lyon compte à ce jour plus de 1,4 million d'habitants, ce qui en fait la 3e métropole française la plus peuplée après Paris et Marseille, tout en disposant d'un meilleur dynamisme démographique (source Insee Métropole Lyon).

Population :

• 513,000 inhabitants (third largest city in France)
• 2,310,000 inhabitants (urban area)
• Population growth on the rise: +4% per year

This dual economic and demographic attractiveness is a guarantee of sustainability for anyone who wants to invest in rental real estate in Lyon.

Lyon a été classé première métropole française dans le classement « ville d'aujourd'hui, métropole de demain ». Ce classement réalisé par Pwc est basé sur un grand nombre de critères et Lyon crée la surprise en ressortant devant de grandes villes, comme Toulouse.

Culture and Heritage : 

• Une situation géographique hors-norme (à 1h40 de la côte d'Azur en train et à 2 heures de route des pistes)
• Capital of gastronomy
• 12 musées (Musée des Beaux Arts, Musée des Confluences, Musée du Cinéma et Miniature...) 
• Des évènements très réputés : Fête des Lumières (1,8 millions de spectateurs), Les Nuits de Fourvière (200 000 spectateurs), Biennale de la Danse (100 000 visiteurs...) 
• 4 quartiers de Lyon (Fourvière, Le vieux Lyon, Croix-Rousse et la Presqu'Île) sont inscrits au patrimoine mondial de l’UNESCO (soit une surface de 500 hectares)
• Monuments d'exception : La Cathédrale Saint Jean, La basilique Notre-Dame de Fourvière et le théâtre gallo-romain, La place Bellecour, Le parc de la tête d'or, La place des Terreaux, L'opéra de Lyon

Lyon, a university center of excellence and a leader among student cities

In addition to its economic attractiveness, the city of Lyon is also renowned for its university centres and colleges. Thus Lyon is the 2nd city in terms of the number of students, with 164,559 students registered in 2019, 10% of whom are foreign students.

La clientèle étudiante est intéressante puisque les étudiants sont en très grande majorité locataires. Les investissements immobiliers dans une résidence étudiante présentent une certaine rentabilité. De plus, les parents sont garants, ce qui permet au bailleur de disposer de solides garanties. Enfin, les étudiants à Lyon louent en général des petites surfaces, comme un studio ou des colocations ce qui permet aux bailleurs lyonnais de disposer de rendements locatifs plus élevés. Pour l'investisseur immobilier locatif à Lyon, cette population d'étudiants lyonnais représente donc un excellent signal.

Students:

• 2nd student city in France and elected in 2018 "Best student metropolis in France".
• 144,000 students
• The University of Lyon ranked in the TOP 10 of the best universities in Europe and 34th in the world (QS Best Student Cities 2017)

It is important to target students' expectations by choosing the area of Lyon according to two categories: on the one hand, the areas of Lyon in which students study, and which some students prefer for their convenience. On the other hand, Lyon's "coolest" neighbourhoods, which attract students with greater financial resources who are looking for prime accommodation in Lyon for a better living environment. Hence the advantage of renovating housing in the centre.  

In this respect, we recommend the Confluence district in Lyon 2nd, even though prices have already risen significantly since the "Confluence" project, Gerland in Lyon 7th and the Part Dieu district in Lyon 3rd. These are all up-and-coming areas, therefore, where property investors can count on the potential for price growth over the next ten years.

The areas of Lyon most sought after by students with the highest financial means are mainly the peninsula, the old Lyon, which is located in the lower 5th arrondissement, and the 6th arrondissement.

Transportation :

• The Lyon Part-Dieu and Perrache stations are equipped with the TGV line, and allow you to reach Paris in 2 hours.
• 4 metro lines including 1 automatic and 6 tramway lines. 36% of home-to-work journeys are made by public transport. 
• + more than 100 bus lines.
• 1000 self-service bicycles
• 1 international airport

Rental yield in Lyon: up to 5.5% gross in Lyon and over 6% in Villeurbanne

Les prix à l'achat à Lyon ont nettement augmenté entre 2020 et 2023, avec une hausse de +11,60% sur un an (source notaires, au juin 2021). Cette augmentation des prix à l'achat, signe d'une forte attractivité de la ville, rend difficile l'obtention d'une forte rentabilité.

However, there are tax exemption schemes that allow you to reduce the tax rate depending on the law. For example, the rental yield in Lyon can be as high as 5.5% gross if you choose to invest in an old property under a law such as Malraux or LMNP, then renovate and furnish the property.

With the Malraux law (scheme), property investors can benefit from a tax reduction of up to 30%. This scheme is not subject to a rent ceiling, which can be advantageous for your investment.

The most attractive tax exemption scheme, whether it is to obtain a higher rent or a favourable tax rate, is the real LMNP scheme (non-professional furnished renter, with a real tax return). With this scheme, you receive tax-free rental income, valid for a flat or an old residence. In contrast to the Pinel scheme, this regime gives access to a wider choice of flats in the city centre. These are mostly older properties that just need renovation.   

With a few exceptions, we do not recommend investing in the Pinel law in Lyon, which offers very low returns, even including the tax advantage. The Pinel law offers a tax reduction. However, when investing in Pinel, new homes are the most favoured. This means a more expensive investment compared to that made on older housing.

The rule for rental investors is the same as in Paris or Bordeaux: a small studio type space in Lyon or T2 will allow a better return. Larger areas will have to be used as shared flats to offer a satisfactory return.

What type of apartment to choose in Lyon?

The rental investment in Lyon does not necessarily differ from a rental investment in Paris. Thus we always find the same types of products that allow us to obtain a high return while having a strong liquidity at the time of resale. We will advise you to choose according to your budget a studio in Lyon, a T2 or a shared apartment.

As the rental pressure is less strong in Lyon than in Paris, we will opt for slightly larger surfaces in order to better match the reality of the Lyon property market. Whatever the type of property you choose, it must correspond to your target tenants. In this respect, theproperty investor in Lyon must know the neighbourhoods well.

Le régime le plus attractif, que ce soit pour disposer d'un loyer plus élevé ou encore d'une fiscalité favorable est le régime LMNP réel (loueur en meublé non professionnel, avec déclaration au réel).

Where to invest in Lyon and which districts to focus on?

Our property hunter in Lyon, has an excellent knowledge of the market. Originally from Lyon, he has worked in several agencies in Lyon for more than 9 years. During these years, Lyon's districts have evolved and the city has been transformed thanks to major projects initiated by the Metropolis of Lyon.

These renovation projects remind us of those in Bordeaux or Paris and demonstrate a political will to develop the city, as well as strong future ambitions. We are thinking in particular of the Lyon Confluence, Lyon Gerland and Lyon Part-Dieu projects, among others, which you can find on the Greater Lyon website.

Les quartiers montants de Lyon sont le confluent à Lyon 2, Lyon 8, Villeurbanne, même si le prix de l'immobilier a déjà bien augmenté depuis le projet « Confluence » ; Gerland à Lyon 7, le secteur Part dieu à Lyon 3ème.

Prices per square meter in Lyon

Lyon compte différentes zones et vous découvrirez des quartiers où le prix au mètre carré à Lyon varie beaucoup. En analysant le marché immobilier lyonnais de début 2024, on observe une tendance moyenne des prix des appartements à un niveau médian de 4 734 euros par mètre carré. Cependant, certains biens immobiliers se distinguent par des valeurs plus élevées, atteignant parfois jusqu'à 7 013 euros par mètre carré. Pour des biens spécifiques, comme un appartement T3 à rénover, le tarif moyen s'élève à 5 579 euros par mètre carré. À l'inverse, un appartement T4 se négocie autour de 5 766 euros par mètre carré. Concernant le marché des maisons, une maison de cinq pièces à rénover se vend en moyenne à 4 253 euros par mètre carré, tandis que son équivalent en neuf s'évalue à environ 4 353 euros par mètre carré. Ces chiffres reflètent les nuances du marché immobilier lyonnais, où le prix varie significativement en fonction du type de bien et de son état (neuf ou ancien)

Perspectives pour le marché immobilier lyonnais en 2024 

Après une stagnation des prix en 2023, la période actuelle devrait confirmer le regain d'intérêt des acheteurs pour l'immobilier lyonnais. La bonne santé démographique de la ville, son économie forte et la rénovation de certains quartiers devraient permettre aux prix de poursuivre leur augmentation sur les 10 prochaines années.

You wish to invest in Lyon? Contact our team.

• Mickael Zonta
• Rental Investment Director

A graduate of a major business school, and after a first successful experience in finance, Mickael Zonta began his career in real estate in 2011 in Paris before extending his activity to the Paris region and the city of Lyon. The fact that he is also a real estate investor in a personal capacity allows him to understand clients' issues in terms of investment objectives, rental yield and choice of tax regimes.