Rental yield trends in 11 French cities

Despite its status as the capital, Paris has the lowest average return (3,91%), while cities like Grenoble (5,72%) and Marseille (5,38%) stand out for their attractiveness to investors.

According to Binta Gamassa, co-founder and CTO of Lokimo: "We are observing an interesting dynamic where certain cities, thanks to a more accessible real estate market and sustained rental demand, offer return opportunities well above the national average."

Rental yields are showing a slight recovery at the national level.

After two years of decline, the rental market has shown signs of stabilization and then recovery since 2024:

• 2021: Best year for yield (4,95%), with remarkable performances in Marseille (5,95%) and Grenoble (5,76%).
• 2022 - 2023: General decline, particularly in Paris (3,54% in 2022).
• 2024 - 2025: Moderate rebound (4,78% in 2025), but Paris remains behind with a yield of 4,33% in 2025.

Paris: a unique market, between high demand and low yield

Despite structurally high rental demand, Paris remains the least profitable city in the study:

• Average yield: 3,91% (lowest in the study).
• Average price per m²: €10.241 (by far the highest, almost 3 times higher than in Grenoble).
• Average rent per m²: €33,3 (the highest, reflecting very strong rental demand).

For Martin Noël, Co-founder and Chief Executive Officer (CEO) of Lokimo: "Paris embodies the paradox of the French real estate market: exceptional rental demand, but prices so high that they drastically limit profitability. Investors must now diversify their investments towards cities like Grenoble or Montpellier to optimize their returns."

Summary of major cities: where to invest in 2026?

1 - Grenoble and Marseille: the profitability leaders

• Grenoble: 5,72%, price per m² €2.595,2, average rent €12,36/m².
• Marseille: 5,38%, price per m² €3.234, average rent €14,46/m².
• Why? These cities offer an ideal balance between profitability, rental demand, and accessibility.

2 - Montpellier and Nice: dynamic markets

• Montpellier: 5,23%, average rent €14,84/m².
• Nice: 4,91%, but very high price per m² (€4.650,8).
• Why? Montpellier stands out for its better value for money.

3 - Toulouse, Lille, Rennes and Strasbourg: stable and resilient markets

• Toulouse: 4,69%, price per m² €3.378.
• Lille: 4,55%, price per m² €3.593.
• Rennes: average yield around 4,3%, price per m² €3.842, average rent €13,68/m².
• Strasbourg: average yield 4,1%, price per m² €3.865, average rent €13,34/m².
• Why? These cities combine economic stability, demographic attractiveness and moderate risk, making them ideal for long-term wealth management strategies.

4 - Lyon and Bordeaux: challenges similar to Paris

• Lyon: 3,80%, price per m² €4.807,2.
• Bordeaux: 4,03%, price per m² €4.641,8.
• Why? Like Paris, these cities suffer from high prices that limit profitability.

According to Binta Gamassa, Co-founder and CTO of Lokimo: "It is crucial for investors to fully understand the specific characteristics of each local market before making a decision. Our mission is to provide them with a clear and precise view of the opportunities and risks."

Lokimo recommendations for investors in 2026

• Prioritize Grenoble, Marseille and Montpellier for high and sustainable returns.
• Focusing on Toulouse and Lille for a medium-term growth strategy.
• In Paris, target specific niches: small spaces, changing neighborhoods, long-term investment.
• Remain cautious in Lyon and Bordeaux regarding short-term strategies, except for targeted opportunities.

For Martin Noël, Co-founder and Chief Executive Officer (CEO) of Lokimo: "We encourage investors to diversify their portfolios and explore less conventional, but potentially very profitable, markets."

Study methodology

The analysis covers the period from 2021 to 2025 and focuses on 11 major French cities. Gross rental yield is calculated using the following formula: Gross Rental Yield (%) = ((Median monthly rent per m² × 12) / Median purchase price per m²) × 100. Purchase prices are primarily sourced from the DVF (Demandes de Valeurs Foncières - Land Value Requests) database of notarial records. When this data is not yet available for certain areas or periods where notarial data is unavailable (such as Strasbourg, or for the year 2024-2025), Lokimo relies on data from real estate listings for sales and rentals (SeLoger, Bien'ici, etc.). The data is cleaned of any anomalies (inconsistent price per m², etc.).

Illustrative image of the article via Depositphotos.com.