Investing in rental property in Paris 18

Key figures

• Price per square meter: 10,600 euros for an apartment (from 7,000 € to 15,000 €)
• Average monthly rent : From €27 to €41 per m2 depending on the property
• 3rd most populated district of the capital
• Average gross yield: 2 to 4% for a studio

Rental investment in Paris 18: why invest in property

Bordering the 9th, 10th, 17th and 19th arrondissements , the 18th arrondissement of Paris is one of the most popular and touristic districts of the capital, it is also the third most populated in the city with 191,135 inhabitants in 2020. It is made up of two former communes that merged in 1860: Montmartre and La Chapelle. The 18th is an area appreciated by residents but also by visitors. It is full of historical monuments and attractions such as the Moulin Rouge, the Sacré Coeur located at the top of the Butte Montmartre, the Place des Abbesse, old Montmartre, the Rocher de la Sorcière or the artists' residence Bateau Lavoir. Very well located on the right bank of the Seine, near Clichy , Saint-Ouen and Seine-Saint-Denis, the 18th arrondissement is the area of theaters, restaurants and lively neighborhoods with its cabarets and its Place Pigalle straddling the 9th. At once historic, bucolic and lively, the 18th arrondissement of Paris attracts and makes you want to invest in property in Paris . To help you realize your real estate rental project, we help you discover all the assets of this area and advise you in your searches for apartments or houses. Do not hesitate to contact us to support your real estate project.

Investing in the 18th arrondissement of Paris: some advice before you start

Getting started in rental investment is a process that requires some thought. Indeed, to obtain the best profitability it is necessary to choose a city or a neighborhood in real evolution and which presents a real rental demand. The dynamism of the sector is therefore a criterion to take into consideration upstream. You can thus find out about the job market in the sector, the unemployment rate, the evolution of demographics, the type of properties for sale, the presence or not of a nursery school nearby or a recognized public or private college, the purchasing power of households, etc. All these elements will be decisive in the choice of the place to invest as well as the type of housing to acquire. It is obvious that the housing that you will offer for rental must correspond to the profile of the inhabitants of the neighborhood (family composition, income level, etc.). A successful investment indeed supposes easily finding tenants and tenants who pay their rent. This is why we always advise you to select dynamic cities and districts rather than sectors hit by the crisis where purchase prices would be lower but rental yields would also be much lower.

In the 18th arrondissement of Paris, many apartments and houses corresponding to your project are for sale. Online or in agency we help you choose the best rental investment. We also offer free documentation to help you learn more about real estate investment, real estate rental or rental management of your private property.

Economic dynamism :

• Unemployment rate 4th quarter 2018: 9.7%
• Neighborhood concerned by the “Paris' Commerces Contract”
• Strong activity around fabric (Saint-Pierre Market)
• More than 6,000 companies created in 2020 in the 18th
• Paris 7th world city for innovation

The 18th arrondissement attracts many investors each year in the tourism, hotel and catering sectors, but also high technology and made in France manufacturing. In the heart of the capital, the arrondissement presents a real dynamism facilitated by the desire of local elected officials to develop the entrepreneurial spirit. Many premises are authorized to welcome new entrepreneurs who arrive in ever greater numbers, seduced by the gentle way of life of the 18th, its lively neighborhoods but also its many nearby transport options. The arrondissement is indeed well connected to the heart of the capital, to Paris airports as well as to neighboring cities such as Saint-Ouen, Aubervilliers, Pantin, Clichy or Saint-Denis.

Transportation

• A stone's throw from Gare du Nord
• 4 metro lines cross the district (2 / 4 / 12 / 13)
• 4 RER lines are accessible in the 18th (B / D / H / K)
• Many bus lines
• 1 direct access to the ring road and the A1
• Vélib' accessible throughout the district
• The 18th is concerned by 5 axes of the Vélopolitain project and 3 are already developed (V4 / C2 / C3).

Namely

• It takes around 36 minutes to get from the heart of the 18th arrondissement to Roissy-Charles-de-Gaulle airport by car and only 32 minutes via the RER B.
• It takes about 48 minutes to get to Orly Airport by car and about 40 minutes by taking the RER B and Orlyval.
• Around twenty minutes by car or metro are enough to reach the 1st arrondissement of the capital.
• The ring road can be reached in just a few minutes from the north of the district.
• The towns of Saint-Ouen and Clichy are just 15 minutes away by car and around twenty minutes by public transport.

Demography

Once the analysis of the economic dynamism and the transport offer has been done, it is appropriate to dwell on the demographic evolution before investing in rental property in the 18th arrondissement of Paris. In this arrondissement, the demographic evolution is approximately 4% between 2006 and 2020. One of the explanations for this strong attractiveness for the 18th lies in particular in the constant increase in the student population. By analyzing the INSEE figures, we note that the 15-29 age group represents nearly 24% of the population of this arrondissement, closely followed by young workers aged 30 to 44, of whom more than 26% reside in the 18th. Young couples are also very numerous in this arrondissement. All are primarily looking for new or old houses or apartments: mainly 1-room studios or 2/3 rooms.

Real estate: what rental yield can you expect in the 18th arrondissement of Paris?

Thanks to the growing arrival of a new population of entrepreneurs and young workers, the 18th is one of the most sought-after areas. In this area, housing prices are also still slightly below the average per m2 in the capital, enough to benefit from an excellent rental yield: between 4.5 and 5.5%. If you want to invest in housing intended for students or young workers, it is possible that they will only occupy the accommodation for a few months, but the demand is strong enough to protect you from rental vacancies. You can also rent furnished to increase the price of your rent and attract an audience attracted by the practicality of this type of property.

Rental investment in Paris 18th: what type of property to choose?

Dans le 18e arrondissement et dans toute la capitale, ce sont les petites surfaces qui sont les plus demandées et qui offrent le meilleur rendement locatif. Opter pour un studio qui se compose d’une seule pièce ou d’un deux pièces (T2) est donc idéal. Dans cet arrondissement vous disposerez d’un grand choix d’appartements anciens que vous pourrez facilement rénover afin de fixer un loyer adapté à votre projet immobilier. Pour cela nous vous aidons à choisir le quartier le plus intéressant pour votre investissement où vous pourrez louer entre 27 et 41 euros du m2 selon le bien et sa localisation. Investir dans la pierre nécessite de prendre les bonnes décisions, c’est pourquoi en ligne ou en agence nous vous accompagnons dans votre projet de location immobilière à Paris grâce à des conseils de pros et à une documentation spécialisée.

Which neighborhoods are best for renting a property?

The 18th arrondissement of the city of Paris includes 4 neighborhoods which are: La Grande Carrière, Clignancourt, La Goutte d'Or and La Chapelle. The Clignancourt and Grande Carrière neighborhoods concentrate the wealthiest population of the 18th while La Chapelle and Goutte d'Or are more populated by households with more modest incomes. However, with the opening of new shops and new businesses, the face of the 18th is changing. The neighborhood attracts a new population of young workers and entrepreneurs who give a new lease of life to the 18th arrondissement of Paris. Young families are also attracted to this area where they can easily find a quality private or public nursery school, primary school, middle school or public high school for their children. Not to mention the cultural offering (plays, restaurants, shows, exhibitions, etc.) available in this neighborhood.

Culture and heritage

• Exceptional monuments: Sacré Coeur, Montmartre cemetery, Moulin de la Galette, etc.
• Numerous art galleries - Stronghold of Parisian nightlife: Moulin Rouge
• Tourist hotspots: Place du Tertre, Montmartre Museum, etc.

Real estate in Paris: what price per m2 in Paris 18

The price per m2 for an apartment in the 18th arrondissement of Paris is around 10,600 euros. Prices can vary from 7,000 to 15,000 euros per m2 depending on the neighborhood and the services offered by the apartment. This data is essential to allow you to make the best real estate investment in Paris 18. Especially since this price has been evolving positively for several years, which shows the potential of this district.

What to expect for the evolution of the real estate market in Paris 18

Investing in rental property in Paris 18th is a pretty safe bet. With the increasing price increases in this area and the strong attractiveness of this district, you will be able to enjoy an interesting return. Especially since the district is constantly evolving, it is therefore a safe bet that within 10 years prices will continue to increase and housing will increase in value. Our experts therefore offer you personalized support to allow you to make the best rental investment in the 18th arrondissement of the city of Paris. Whatever your budget and your objectives, we offer you the most suitable solution and are by your side during all stages of your real estate project. Do not hesitate to request free documentation online or in an agency to find out more about the real estate market in the 18th arrondissement of the city of Paris.

• 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.