Immovable. Lyon, Strasbourg, Montpellier… in which city is buying better than renting?
In an inflationary context where the mortgage rate is increasing, is it more interesting to buy or to rent in 2022? Answers with a study by the broker in real estate loans Cafpi which looked at the charges relating to the purchase and rental, for a property of 60 m², in the 12 largest cities in France *.
Strasbourg: a period to make your purchase profitable, which doubles compared to 2021
With a general increase in real estate prices and lending rates which have risen, over 25 years, from 1.08% in November 2021 to 2.3% in November 2022, the length of time for buying to become more laudable than renting almost doubled in one year in France.
In Strasbourg, for example, while it took 3 years and 6 months for buying to become more laudable than renting in 2021, it is now necessary to wait 6 years and 1 month in 2022.
It is highly likely that the time for a purchase to be commendable relative to a rental will continue this bullish movement, the study points out.
Bordeaux, Paris and Lyon: more than seven years to make your purchase profitable
Bordeaux is the city where you have to wait the longest for buying to be more laudable than renting, with 8 years (compared to 4 years and 11 months in 2021). The reasons are multiple: one of the highest purchase prices (€4,906 per m²) and a high property tax (€1,593 on average in 2022, i.e. nearly €133 per month), thus increasing the cost for become an owner.
Paris, with an average price of €10,764 per m², and Lyon with €5,102 per m², have the highest real estate prices. For the purchase to become more laudable than the rental, it is necessary to wait respectively 7 years and 11 months and 7 years and 9 months. This duration has also doubled in 2022 compared to last year when it was necessary to wait in these two cities 4 years and 8 months.
Lille, Montpellier and Reims: less than 5 years for buying to be more commendable than renting
Among the cities studied by Cafpi, it is in Reims that the purchase becomes the most quickly rentable compared to the rental with 4 years and 2 months, followed by Montpellier with 4 years and 3 months and Lille with 4 years and 6 month.
“We note that in the majority of cases, it is the price of real estate on purchase that influences the duration before becoming rental, comments Caroline Arnould, director of development at Cafpi. In Lille and Montpellier, it is the combination of relatively low prices and high rents that ensures rapid profitability of the purchase. »
In Reims, if the rents are relatively low, the real estate prices are also, which allows rapid profitability.
* The study analyzes on the one hand the notary fees which are added to the property tax and the monthly interest on the mortgage over 25 years (at a rate of 2.4% in 2022, 1.4% in 2021 and 0 , 3% for borrower insurance) and on the other the monthly income (with an assumption of an annual increase of 2%). The market value of the property and its possible capital gain or loss over time are not taken into account.