Rental investment Nice: High-yield real estate

Are you planning to invest in Nice and you are wondering: What are the unique features of the city of Nice? What are its strengths for your rental property investment projects in Nice? We reveal the possibilities for renting in the private sector, property prices in Nice and the rental yield to be expected. To help you find where to invest , we advise you on the areas to favor for investing in a residence and the outlook for the Nice property market.

Property investment in Nice: what are the city's assets?

Located in the heart of Provence-Alpes-Côte d'Azur, Nice is the 5th most populated city in France. It is an attractive metropolis that offers an incomparable living environment. This is explained by its Mediterranean climate and its many natural, cultural and economic assets. Local shops and services are also spread throughout the city. Thus, Nice is one of the safest cities in terms of real estate investment. 

Dynamic and sunny, the city attracts a diverse population of families, young executives, students and tourists every year. It now has nearly 347,000 inhabitants. 20% of them are between 20 and 29 years old, and 22% between 30 and 44 years old. These age groups are regularly looking for a residence or rental accommodation in Nice, both in the city center and on the outskirts.

In terms of accessibility, Nice benefits from an optimized transport network , which allows residents and visitors to easily travel throughout the metropolis. The latter offers 93 bus lines as well as 3 metro and tram lines. It is also possible to travel by bicycle thanks to the Vélo Bleu (Velib) bike-sharing service. As a result, people who live there often prioritize proximity to public transport when choosing accommodation in Nice.

The city is also well served by air transport with the presence of its international airport. In terms of rail links, a high-speed line (LGV) project is planned for 2030 as part of the modernisation of the area. However, a TER currently provides regional train connections. Visitors from other cities have easy access to Nice, a fact that can be quite interesting for real estate investment.

Investing in rental property in Nice: what do you need to know before getting started?

Whether in Nice or Cannes , the Côte d'Azur is a prime area for those looking to invest in real estate. However, the dynamism of Nice makes it particularly attractive for a rental investment. The search for apartments is increasingly strong, which represents an interesting investment opportunity in real estate for investors. Investing in the city center of Nice or not essentially depends on the return objectives.

Nice, a major economic centre

Capital of the Alpes-Maritimes and economic capital of the Côte d'Azur, Nice is above all a real employment pool. It is known for its many hospitals. Its business district, Arenas, brings together nearly 350 companies, creating 7,000 jobs for young workers. The attractiveness of this economic sector is reinforced by the presence of the Sophia-Antipolis Technopole just 30 minutes from the city. It is made up of 2,500 companies, representing approximately 38,000 jobs. Thus, the working population of Nice is relatively large thanks to the numerous job offers. The housing requests made regularly by young workers and executives allow a reduction in the rental vacancy period.

Nice, a major student city

Nice is also one of the most important university cities in France. Nearly 45,000 students continue their studies in the city. This represents nearly 13% of the population of Nice.

Students in Nice impact the Nice real estate market. They are mostly tenants. Students in Nice choose to rent a studio or a 2-room apartment. Some also turn to the shared accommodation option by accessing 3-room, 4-room and larger apartments. 

Students have the choice between the different courses offered by the major schools established in the city, namely:

• The Higher School of Commerce, Communication and Management (ESCCOM),

• Business schools (EDHEC, IDRAC and ISCAE),

• EPITECH (IT expertise),

• SUPINFO / SUPDEWEB / SUPDECOM,

• The ISEFAC School of Management, Marketing and Communication,

• ESRA / EFA School of Audiovisual Studies,

• The Free Institute of Business Studies,

• The Institute for the Preparation of Administration and Management (IPAG Business School),

• The School of Journalism (EDJ),

• Art/Design schools (ITECOM / ECONDE / The SDS / Villa Arson),

• The National Music Conservatory,

• 11 university campuses.

In addition, Nice has several schools for high school, college and kindergarten students. Potential tenants of the flats can therefore be families with children as well as students and young professionals.

Nice, a renowned tourist destination

In addition to its strong involvement in education, Nice is also recognized for its development policy focused on tourism. Cultural life is optimized thanks to a rich program of events throughout the year, combined with the diversity of its tourist sites. It also has the 2nd hotel capacity and the 3rd airport in the country. "Nice, the resort city" was also listed as a UNESCO World Heritage Site on July 27, 2021. The capital of the Alpes-Maritimes welcomes more than 5 million visitors each year. This flow of tourists is conducive to a highly profitable rental property investment in the private sector.

Nice offers several types of properties

In the Nice real estate sector, certain types of housing are particularly popular with potential tenants, particularly small apartments. Investing in a studio or a 2-room apartment is therefore interesting. This allows you to benefit from a gross rental income of up to 7%. 

However, as shared accommodation is becoming increasingly popular among young people, other types of property are still advantageous. You can consider buying a three-room flat in Nice. The flat in question could be rented to students during the university year and put up for seasonal rental during the summer. However, the property (studio or flat) must be close to amenities and shops. The proximity of a school (nursery, secondary or high school) can also be an advantage.

Investing in old property is the best option for property investment in Nice, even if it means undertaking renovation work. There are several reasons for this choice. It is a useful way to save on the cost of the operation and to take advantage of various tax niches. You can consider a tax reduction or possibly a deduction for the amount of work, provided that the property is rented out over a specific period. 

It is also possible to rent a furnished apartment under the status of non-professional furnished lessor (LMNP). This alternative allows you to benefit from a 50% reduction in your rental income or a depreciation of the accounting price of the rented apartment.

Rental yield in Nice: what profitability to expect and for what price?

There are different investor profiles in Nice, in the Alpes-Maritimes. Those who operate in Nice will have the choice between the yield criterion or the heritage criterion when choosing the district in which to invest. The private park of old real estate is then the most interesting sector. The prices for each type of property (studio, apartment and house) remain more affordable compared to those of new real estate. Indeed, the average price of the old m2 in Nice is 5,486 €/m2 compared to 6,515 €/m2 for a purchase in new.

Depending on the objective of the real estate purchase, the area where to invest in Nice can vary significantly. If you want to build up assets, districts such as Vieux-Nice, the Port, the Carré d'Or, Mont-Boron and Les Musiciens are suited to your needs. The Cimiez district, also called the "little Neuilly of Nice" is also an interesting choice. In addition to these places, there is Corniche fleurie and Fabron in Nice Ouest. The profitability is estimated at between 3% and 5%. 

On the other hand, if you want to make rental profitability, you can invest in neighborhoods like Madeleine, Magnan, Libération, Riquier, Saint-Roch, Arenas, Caucade and California. You can also get a good return on investment in the outskirts of Nice, in addition to the prospects offered by the Nice Est and Nice Ouest districts. Profitability in these neighborhoods is estimated at between 4% and 7%.

How much is the rent for accommodation in Nice?

The amount of rent in Nice, as in Reims, Versaille, and other cities, varies depending on the district, the type of accommodation and its facilities. The average rent is 19 euros per square meter. Some districts such as Place Masséna offer slightly more expensive rents with its 22€ per square meter.

Which areas to invest in in Nice?

Like the city of Marseille , Nice has several districts that are not all equal in terms of real estate. If you want to invest in Provence-Alpes-Côte d'Azur, in the Nice area, you must understand the disparities between each district. In this city in full transformation, prices as well as the rental yield rate can vary significantly depending on the use of the property. This variation is also noted depending on the geographical location of the accommodation (apartment or house) in Nice. 

It should be noted that the seaside will be more interesting for foreign investors and those wishing to make seasonal rentals. Local investors will prefer areas more frequented by young professionals and students. However, the price of the property will influence their purchasing decisions.

Among the most popular districts, you can distinguish the Carré d'Or sector extending from the Place Masséna to the Poets' Quarter. Its proximity to the Vieux Nice and the Promenade des Anglais allows it to offer a good return thanks to its high profile tenants. These areas in the city centre are also interesting if you want to invest in Nice real estate. The same applies to the areas around the coulée verte and the Cimiez, Port and Fabron districts.

However, other areas also offer good opportunities for real estate investment. You can find a studio or flat that suits your rental needs in the dynamic areas of Arenas and Pasteur. If you have a small budget, you can opt for more outlying areas such as Beaulieu-sur-Mer, Falicon and Saint-Laurent-du-Var. If your aim is to invest in luxury flats, residential areas such as Mont-Boron, Ginestière and Saint-Antoine will be appreciated, provided you assess the prices carefully.

What are the prospects for the real estate market in Nice in 2025?

The real estate market in Nice in 2025, in this city located on the Côte d'Azur in France, is generally resilient and constantly growing. This year, average prices, comparatively more affordable than those in Paris, continue to rise. The pace of sales of small housing such as studios or 2-room apartments is accelerating. This is explained by the relaxation of the conditions for obtaining credits and the reduction of their interest rates. 

A real estate rebound is expected in the coming months in Nice. This is fueled by the constant influx of tourists throughout the year, strengthening the demand for temporary housing and creating attractive yield opportunities. Thus, the Nice market promises to be flourishing for investors looking for yield in the medium and long term. This is especially true in the private sector of old real estate for all housing. 

So, are you ready to make a rental investment in Nice ? To help you realize your project, contact us! Take advantage of our expertise as a real estate hunter and our commitment to providing you with solutions adapted to your needs. With us, benefit from personalized and professional support to invest intelligently in Nice.

• 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.