Rental investment still worthwhile in 2025: reasons to get started
In 2025, rental property investment remains a profitable and relevant investment, appreciated by many French people to build wealth, prepare for retirement or generate additional income. Despite changes in tax exemption schemes such as the end of the Pinel scheme, buy-to-let opportunities are still very real. If you're looking for a house for sale in Collioure by the sea, now is the ideal time to make your project a reality.
Why rental investment remains attractive in 2025
The economic context and changes in the real estate market offer interesting opportunities for investors.
A still buoyant real estate market
Despite economic tensions, the French real estate market is not collapsing. The average price per square metre is stable in several medium-sized towns and areas under pressure. Rental demand remains strong, particularly in major cities (Paris, Lyon, Bordeaux) and tourist areas such as Collioure.
Falling interest rates: leverage to be exploited
Mortgage rates have fallen back below 4%, making credit financing more accessible. This financial leverage is ideal for first-time rental investment, even with a limited down payment.
A more resilient investment than the stock market
Compared to more volatile financial investments, rental property remains attractive. Buying a rental property remains a safe investment, less sensitive to economic fluctuations.
What yields can we expect in 2025?
Understanding the prospects for profitability is essential for assessing the suitability of a rental investment.
Gross and net profitability: what to expect
In 2025, the average gross return on investment in France is around 5.9%, with variations according to region and property type. Net profitability, after deduction of costs (notary's fees, utilities, property tax, renovation work and taxes), is generally between 3% and 5%.
Calculating the rental yield remains a key step prior to purchase. Don't forget to factor in potential vacancy and rental management costs.
Rental potential in tourist areas like Collioure
Collioure, with its tourist appeal, offers attractive rental potential. The average gross rental yield is 3.32%, with prices per square meter around €6,196. Seasonal rentals optimize profitability, particularly during the peak summer season. To find out more about why you should invest in rental property in Collioure, read our dedicated article.
Taxation 2025: features that still make a difference
As of January 1, 2025, the Pinel scheme is no longer available for new investments. However, other tax regimes remain advantageous. The micro-BIC regime, applicable to furnished rentals, offers a flat-rate allowance of 50% on rental income, up to €77,700 in annual revenue. For bare-land rentals, the micro-foncier system offers a 30% allowance on rental income of less than €15,000.
How to make a successful rental investment in 2025
A well-defined strategy and rigorous property selection are essential to maximize profitability.
- Choosing the right property, in the right location: location is a key success factor. In Collioure, choosing a property close to the sea and tourist attractions increases the chances of profitability. Seaside homes are particularly popular with holidaymakers.
- Optimize profitability: to improve profitability, consider furnished rental, which offers higher rents and attractive tax benefits. Efficient management of the property, particularly in terms of maintenance and services offered, also helps build tenant loyalty and reduce vacancy periods.
- Preventing risks: investing in real estate involves risks (unpaid rent, deterioration, etc.). To limit these risks, it's advisable to take out appropriate insurance, select the right tenants and set aside cash to cover unforeseen events.
2025, a propitious year for investment with the right support
So is it worth investing in rental property in 2025? Yes, provided you are well informed, optimize your tax situation and choose the right property. Whether you're looking to diversify your savings, prepare for retirement or increase your standard of living, investing in real estate is a strategy that's always part of a long-term vision for your assets.
Collioure, with its authentic charm and tourist appeal, is a safe bet for rental investment. Rental demand is strong, especially during the summer season, and the prospects for profitability are extremely attractive.
To maximize your chances of success, trust Paradise Immobilier, your local partner for a successful investment. Contact us today to make your rental investment project in Collioure a reality.