Investment in the 5th arrondissement of Lyon

Why choose the 5th arrondissement of Lyon?

The 5th arrondissement of Lyon is an emblematic place of the metropolis. This area offers above all many advantages for an investment in rental real estate .

The historic heart of Lyon

Considered a world heritage site, the 5th arrondissement of Lyon is an area full of history. Located below the 9th arrondissement, it is also a very touristy area thanks to the presence of the Fourvière hill and its funicular. Indeed, these attract more than 2.5 million visitors each year.

Parks, gardens, views of Lyon and its surroundings, exploring the 5th arrondissement is undoubtedly discovering the city's past. It is also understanding the stories of stones, of several Lyonnais traditions and of everything that makes up the identity of the territory. Until today, some places in the 5th arrondissement still reveal traces of the city's Roman past.

Steady economic growth

The economic activities of the 5th arrondissement of Lyon are mainly based on business services. This particularly concerns the fields of IT, education and communication. The area is also home to various major health centres, such as the Pierre-Garraud, Antiquaille and Debrousse hospitals.

These establishments represent approximately 7,000 jobs throughout the territory. The catering and hotel sectors also boost the district. This is particularly due to the historical and picturesque richness of each district, attracting a large number of tourists.

Easy access

The 5th arrondissement of Lyon has an extensive transport network, ensuring its connection with other arrondissements such as the 1st and the neighboring towns of the metropolis. 

Metro lines A and D

For their daily travel, residents of the 5th arrondissement can rely on metro lines A and D. These lines pass through the Lyon-Saint-Paul station. They mainly connect the 5th with its neighboring arrondissements and other areas, such as the western suburbs of Lyon.

The F1 funicular

Connecting with the metro, the F1 funicular is still in service in the Lyon area. Historic and picturesque, this transport is integrated into the TCL urban transport network. It also allows you to quickly reach the neighborhoods of other districts and the activity centers present in the city.

Tram line D

The 5th arrondissement of Lyon is very well served by the tramway thanks to line D. For this type of transport, you will actually find 4 stations, including:

• Saint-Just,
• Minimes-Roman-Theaters,
• Fourviere,
• Old Lyon-Saint-Jean Cathedral. 

​​​​​​Bus lines 55, C20 and C21

The district has 3 bus lines, namely the 55, the C20 and the C21. These latter facilitate the daily travel of approximately 50,000 inhabitants. They particularly ensure journeys within the district.

The real estate trend in the 5th arrondissement of Lyon

The real estate market in the 5th arrondissement of Lyon remains attractive thanks to its strong rental demand . In new or old buildings, it offers a wide variety of properties to real estate investors .

Real estate investment in new buildings

If you want to invest in new real estate, a few programs are still available in the 5th arrondissement of Lyon. However, due to its high price, a new property generates less rental income than an old property. In addition, the delivery of the property often goes beyond a quarter, while this wait can affect the overall profitability of the investment.

Real estate investment in old buildings

The 5th arrondissement of Lyon offers a wide choice of old housing. This is due in particular to its rich history. You therefore have a good chance of investing in a property with high potential. 

In addition, old properties remain the most profitable in the district. Affordable, their price varies between €3,509/m2 and €6,937/m2 for an apartment. In the context of a renovation, the delivery of the work is generally free and lasts a quarter. 

By making a rental property investment in old properties , you can also benefit from interesting tax advantages via the LMNP status (Non-professional furnished rental). On the one hand, your taxes will be reduced. On the other hand, it will be possible to amortize the value of your assets. The LMNP system is effectively applicable from the moment you rent the furnished property.

Rental profitability

The 5th arrondissement of Lyon is particularly favorable to rental property investment . Moreover, 52% of the residents of the sector are tenants of their accommodation, which represents an opportunity for investors.

Despite the low number of properties available for rent, demand remains high. Profitability is also high due to the low rental vacancy rate. It actually fluctuates between 4% and 7%.

This rental demand mainly concerns T3 type apartments. This type of property particularly corresponds to what families are looking for. By renting this accommodation at an average price of €15/m2, you can expect a gross yield of 4.5%. 

Next comes the T2, with a profitability of 5%. This type of property is more suitable for young workers and students. Note that the median rental price is €16/m2. Even if they are rare, T4 apartments and studios remain the most profitable accommodation in the 5th arrondissement of Lyon. Their potential yield is between 6% and 6.75%.

Real estate investment opportunities in the 5th arrondissement of Lyon

When investing in rental property, choosing the area to invest in is a crucial step. The 5th arrondissement of Lyon is particularly home to historic and residential areas.

Old Lyon

Vieux-Lyon is a historic district in the 5th arrondissement of Lyon. With the appearance of a preserved village, it continues to seduce a large number of lovers of beautiful stones. You will find there in particular buildings with remarkable architecture and very prestigious cultural sites. Among them stand out the Gadagne museum and the Gothic cathedral of Saint-Jean.

The current renovations of the district have restored its splendor. In terms of real estate investment, however, prices are high, at €6,216/m2 for an apartment and €7,889/m2 for a house. Despite this, Vieux-Lyon presents a real opportunity for an investor.

The Champvert Point-du-Jour Jeunet

The Champvert Point-du-Jour Jeunet district is a quiet and urban place in the 5th arrondissement. Suitable for families with children, it has many green spaces. From an economic point of view, it is a dynamic sector with countless services and shops. In addition, this area is well equipped with school infrastructure (nurseries, primary schools, middle schools, high schools).

As for the population, the majority of residents are executives or business leaders. The real estate in this district is essentially composed of 95% apartments and 5% houses. Very affordable, real estate prices range from €4,948/m2 to €5,468/m2.

Fourviere-Saint-Just

Fourvière-Saint-Just is a fairly dynamic and urban district in the 5th arrondissement of Lyon. Very attractive, it contains several green areas, shops and schools. In addition, this place is perfectly served by public transport, in particular by the F1 funicular. Its population is relatively young and mainly composed of business leaders.

Furthermore, 68% of residents are tenants of their accommodation. Thus, this district is particularly favorable for a rental investment. Concerning the cost of real estate, this area is quite expensive to buy. The figures are actually around €5,000/m2.