The real estate market in Saint-Etienne is changing rapidly. It has been sluggish for years, but has seen a marked upturn in activity over the past year as investors flock to it. The many renovations in the city, the opening of the third tram line at the end of 2019 and especially the low prices have a lot to do with it. Additional advantage, tenants are numerous. “While the center regularly lost inhabitants to the benefit of the inner ring, the demography of the city is now stabilized”, says Sébastien Lagarde, director of the Nestenn agencies.
However, if you plan to invest there, do so with a lot of caution, because Saint-Etienne is one of the most diverse cities in France. “Coal rubs shoulders with diamonds!” Within the same district, from one building to its neighbor, prices can vary from single to double ”, says Fabienne Vidal, hunter at Investissement-locatif.com.
Cours Fauriel and the surrounding area: a safe bet
To minimize the risk, be sure to aim for an apartment on Cours Fauriel or in the adjacent streets. “It is a pleasant district to live in, shopping and it retains its rating because everyone wants to live there”, lists Fabienne Vidal. The other side of the coin: the prices are the highest in the city and the small surfaces, in great demand, sell out in a few days. On average, it takes between 65,000 and 75,000 euros for a 30 m room2 and rather between 85,000 and 90,000 euros for a two-room apartment.
To easily rent to students or young workers, offer the property in long-term furnished. The rent for a studio varies between 500 and 550 euros per month and that of a two-room apartment between 550 and 650 euros per month. That is to say a profitability greater than 7%. An alternative is to explore the north of the city, between places Carnot and Foch. “The sector is a little less priced than the Fauriel price, but rental demand is very strong”, explains Sébastien Lagarde. Prefer two- and three-room apartments, which sell for 1,300 to 1,600 euros per square meter, depending on their condition. Refurbished, they are popular with medical students and young professionals who work at the North Hospital, less than twenty minutes by tram.
With this type of surface, two solutions are open to you, either renting with a conventional lease, between 550 and 750 euros per month, or renting in shared accommodation, between 320 and 350 euros per month for each room. A little cheaper, because further from the center, the Terrasse district has slightly lower prices for similar rents. Beware of the collective charges of certain residences: if they are too high, this will weigh on the yield.
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