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Jul 28, 2012

Rental returns in Paris are disappointing


Last Updated: Jul. 28, 2012
PARIS - Apartments COST (€) YIELD (p.a.) PRICE/SQ.M. (€)
TO BUY MONTHLY RENT TO BUY MONTHLY RENT
35 sq. m. 524,790 1,404 3.21% 14,994 40.11
75 sq. m. 1,065,000 2,603 2.93% 14,200 34.70
120 sq. m. 1,763,520 4,397 2.99% 14,696 36.64
200 sq. m. 2,804,600 7,058 3.02% 14,023 35.29
375 sq. m. 4,971,375 13,144 3.17% 13,257 35.05
Districts researched:
Paris: 4th, 6th, 7th, 8th, 16th, and 17th arrondissements
Source: Global Property Guide Definitions: Data FAQ See also: Update Schedule

Gross rental yields on rental property in central Paris of around 3.5% are typical, regardless of apartment size. As prices have risen, rents have not kept pace.

These are quite disappointing returns for investors. However, they are not unlike the rental returns on properties in other capital cities in Europe. This is an epoch of low yields and high prices, which the housing crisis and its aftermath has done almost nothing to dent.





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