In the collective imagination, shared accommodation rhymes with Spanish inn and noise pollution. However, renting an apartment for several people would currently be one of the most profitable real estate investments. Depending, of course, on the location of the property.
If you are looking for a real estate investment, have you considered shared accommodation? Admittedly, the latter can still suffer from a sulphurous image. However, the solution is now favored by many students and also by young workers who wish to share accommodation.
For investors, colocation would also be one of the most profitable choices, according to the Investissement-locatif.com site, which has just published its 2022 list of cities where to invest in colocation. For this study, the company relied on the average returns that investors can expect with a budget of 200,000 euros.
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Lille at the top of the standings
And as in 2021, it is Lille which takes the first step of the podium. With large schools such as Science Po, Centrale or the ESJ among others, the city has 114,000 students each year but also has many young workers looking for accommodation. Result: an investment in colocation Lille would ensure an average net rate of return of 5 to 7%. Marseille ranks second, with a yield of 57.5%. A large university town in the Grand Est, Nancy completes the podium with a profitability of 6 to 8.5%. By way of comparison, the FNAIM estimated a few weeks ago that the gross rental yield for conventional Marseille housing was 5.2%. However, the rental vacancy, an important factor for any real estate investor, is less strong in shared accommodation than in other accommodation.
Rental property: how to calculate the return on your investment
In 2019, a survey of things revealed that 28% of the respondents lived or had already lived with a roommate. For 91% of them, this type of accommodation was synonymous with savings. On the side of the investor, the advantages are also multiple. Because who says roommate says several people to pay the rent, which divides the potential risks. If a roommate leaves, the others continue to pay the rent, whereas in a traditional rental, the departure of a tenant can impact the investor. In addition, according to Investissement-locatif.com, a colocation owner can rent 20 30% more expensive accommodation compared to a classic apartment.