Ranking among the 200 largest cities of France

A study of the Meilleursagents site allows us to know after what period of time buying an apartment is more profitable than renting.

This is a question all tenants with money to spare are asking themselves right now. Should you buy or continue to rent? A new study gives us some answers with the number of years needed before it becomes profitable (for a primary residence) in nearly 200 cities.

Of course everything will depend on where you live. That’s why Meilleursagents calculated the 200 largest cities in mainland France. In the three cities, Saint-Quentin, Mulhouse and Creil, it takes less than 5 years to make profitable the purchase of a main residence of 70 m2, if you take more than 25 years with a contribution of 60,000 euros (full table below see). Below).

It must be said that these are cities where the price per square meter is still very cheap, between 1,000 and 2,000 euros. On the contrary, the cost of renting a 70 m2 apartment is not so cheap.

Buy or Rent in 2024?
Buy or Rent in 2024? © MealersAgents

But interestingly, this period before the loan has to be repaid on the purchase of a property is reasonable in many municipalities, and it is quite well distributed across the region. Thus, it takes less than 9 years to make your purchase profitable in the 62 cities studied. Thus we can cite Nancy, Dunkirk, Ivry-sur-Seine, Limoges, Châteauroux, Saint-Etienne or even Angoulême. And in the cities studied we are, on average, 10 years off.

“A temporality in perspective of the different life projects of the French, especially for the 42% of 18-34 year olds who plan to buy a property due to depreciation caused by changes in the structure of their home This period of life project in the city The purchase of this type of property is a good idea”, underlines MeilersAgents.

Buy or Rent in 2024?
Buy or Rent in 2024? © MealersAgents

Furthermore, contrary to what one might think, it is not necessarily that it is the least profitable to buy in the biggest cities. Because if for example in Paris the prices per square meter are very expensive, the rents are also very expensive. In Marseille, this amortization period is 10 years. In the capital, it is 11 years. 12 years in Bordeaux, 13 years in Lyon.

Therefore it is more towards small but very popular municipalities and where the rent is not that high compared to the price per square meter. You will have to wait 20 years to make your purchase profitable in Annecy, Saint-Germain-en-Laye, Saint-Malo or even Les Sables-d’Olonne.

Buy or Rent in 2024?
Buy or Rent in 2024? © MealersAgents

A calculation that depends on several parameters

But how is this period calculated? On the one hand, Meilleursagents looks at the average purchase price per m2 of an apartment in each city. Then the site assumes that a childless couple buys it with a 25-year loan and a contribution of 60,000 euros. The costs associated with being an owner (condominium fees, work and property taxes, not forgetting the transfer tax at the time of acquisition) are also taken into account.

On the other hand, we look at the same couple, assuming they remain tenants (with rent increasing in line with inflation). They place these 60,000 euros of savings in investments paying 3%.

From this data, Meilleursagents experts calculate how after how much time the fact of owning (with repayment of borrowed capital and possible resale of the property) allows you to receive more from the property than the invested savings (interest included). Is. These calculations are therefore based on a number of assumptions, such as the evolution of prices, inflation and rents.

It’s best to adapt these parameters to your situation, but that’s exactly what MailersAgents allows Its “Buy or Rent” simulator is available here, However, the ranking established by the site allows you to get a first idea about your city.

In addition, it should be remembered that a real estate project for your main residence depends not only on pure financial calculations, but also on your aspirations and your life projects (mobility, preparation for retirement, doing what you want at home Being able to) also depends on. etc.). Needless to mention that you also need to have strict financial discipline to never touch the savings set aside.

*Opinionway survey for SeLoger-Meilleurs agents conducted from February 23 to March 5, 2024 on a sample of purposive buyers (648), sellers (273) or renters (276) aged 18 years or older and representatives of the target studied Went.

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