Become the owner or tenant of real estate in the largest cities in France?
According to the National Institute of Statistics and Economic Studies Insee, 58% of French people are owners of their own possession real estate. In the ten largest cities in France (Paris, Lyon, Nantes, Bordeaux, Toulouse, Lille, Strasbourg, Marseille, Nice and Montpellier), be owner can seem complicated. However, it is always advantageous to have your own property than being a simple tenant according to an application of calculation of a real estate project : Save.immo.
The price trend of an apartment in recent years
In 5 years, between January 2016 and 2021, the most big cities of France ont connu une progression at price of m². The founder of Save.immo, Paul Duthoit, says that some cities like Paris or even Lyon experienced a slight decrease, but they go there overcome once the crisis passed. Here are the percentages reflecting this increase, in order of magnitude:
- Lyon (over 39.1%);
- Nantes (more than 37.9%);
- Bordeaux (more than 31.9%);
- Toulouse (more than 31.3%);
- Lille (more than 29.6%);
- Paris (more than 24.6%);
- Strasbourg (more than 23.4%);
- Marseille (more than 20.4%);
- Nice (more than 17.4%);
- Montpellier (more than 15.2%).
The average salary to buy or rent a property of 45m²
Paul Duthoit explains that it is interesting to be owner of a property than being a tenant in certain cities such as Toulouse, Lille, Marseille, Strasbourg or even Montpellier. In other cities like Nice, the monthly price difference is 50 euros. here is the amount that you will have to earn monthly for become an owner while considering a contribution of 10% to cover acquisition costs:
- Paris: €5,750 / month;
- Lyon: €2,950 / month;
- Bordeaux: €2,500 / month;
- Nice: €2,450 / month;
- Nantes: €2,100 / month;
- Lille: €1,950 / month;
- Strasbourg: €1,800 / month;
- Marseille: €1,800 / month;
- Toulouse: €1,800 / month;
- Montpellier: €1,750 / month.
The rate is quite different when you are tenant :
- Paris: €3,750 / month;
- Lyon: €2,400 / month;
- Nice: €2,400 / month;
- Bordeaux: €2,100 / month;
- Lille: €2,100 / month;
- Montpellier: €1,950/month;
- Strasbourg: €1,950 / month;
- Marseille: €1,950 / month;
- Toulouse: €1,950 / month;
- Nantes: €1,800/month.
Amortization of acquisition costs in major cities in France
The ten largest cities in France have a advantage of dispose of a depreciation period of the lower acquisition costs at one year, compared to the national average of 5 years. here are the depreciation periods of the acquisition fee in ascending order:
- Lyon: 6 months;
- Nantes: 8 months;
- Bordeaux: 9 months;
- Paris: 11 months;
- Marseille: 12 months;
- Toulouse: 12 months;
- Nice: 12 months;
- Montpellier: 12 months;
- Strasbourg: 12 months;
- Lille: 12 months.
Become an owner or tenant?
Become an owner is significantly more interesting especially in the big cities of France, if you stay there for at least two years except in Montpellier. A purchase and an resale after 5 years, the owner wins, because it’s as if he has saving the costs linked to his accommodation.
