With the end of the school year approaching, students are starting to look for accommodation for the start of the new school year… and only some of them will be housed in university residences. In 2021, according to the Association of residences for students and young people (Arpej), there were 350,000 requests for accommodation in university residences for 173,000 places. “The requests are pouring in at the moment”confirms Justine Renaudet, co-founder of Colette, a structure that helps students find accommodation.
If buying a dwelling in the old and renting it to a student can be an interesting investment, this market has particularities that you should know before starting.
Focus on small accommodations
Thinking of investing in this niche? Buying a small area is often a good idea: 55% of students are looking for a studio as a priority, according to the private rental site LocService, which has studied around 40,000 rental requests. A two-room apartment is the choice of only 19% students – better off or as a couple.
“By buying a small surface, the investor can also hope for a good return, studios are rented at a higher price per square meter than large apartments”says Mathieu Darras, founder of Brickmeup, a platform that helps individuals build up real estate assets.
Choosing the right city… and neighborhood
Opting for student tenants involves choosing a large university town and, within it, selecting a district particularly appreciated by this public. Among the important criteria: a good service by public transport.
According to calculations by the National Real Estate Federation (Fnaim), among the thirty French municipalities with the most students, Saint-Etienne has the best gross return, at 8.9% (with a price of average purchase of 1,444 euros per square meter for a studio, and a median monthly rent of 10.70 euros per square meter).
After Saint-Etienne come Limoges (gross yield at 7.6%), Valenciennes, in the North, (6.9%) and Nancy (6.3%). Gross profitability is calculated by dividing the annual rent by the price of the property, including the finishing works. L’Observatory Clamorset up by real estate professionals, allows you to get an idea of the rents in the city where you want to invest.
But we should not focus only on these averages, because, depending on the neighborhood, other areas are interesting. In a recent analysis of the rental market of the main French student cities, the rental investment platform thus presents in Rouen (5.5% average profitability in the city, according to Fnaim) a project yielding 6.71% for the purchase (107,343 euros) of a 29 square meter studio in the Saint-Sever district, bringing in 7,200 euros in rental income per year.
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