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Regional property markets: where to invest in 2026?

Not all cities offer the same balance of yield and risk. Lille and Montpellier retain the best gross yields. Greater Paris remains a long-term wealth investment. Lyon is entering a phase of stabilisation.

Covesta

Co-founder, Finance and Strategy

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The French property markets are at a turning point. The corrections of 2023-2024 have been absorbed, borrowing rates are stabilising at around 3.2-3.5%, and transaction volumes are picking up again. A tour of the main markets in which Covesta operates.

Change in prices per m² over 5 years

Chart

Average price per m² of existing homes in the target cities

Base 100 = 2021. Observed and projected change up to 2026.

Source: Notaires de France + Covesta analysis

Observed gross yields

Chart

Average gross rental yield for a renovated furnished flat

Annual rent ÷ total cost including agency fees. Typical renovated one-bedroom flat (T2), DPE C.

Source: Covesta observations 2025 on the managed portfolio

Our reading of the markets

Lille

The most accessible and most profitable market in our portfolio. Student demand (Lille 1, EDHEC, Sciences Po) guarantees an occupancy rate above 98%. The energy-inefficient homes of central Wazemmes or Vieux-Lille offer an ideal hunting ground.

Montpellier

Population growth among the strongest in mainland France. The city benefits from a service-sector appeal (Eurometropolis Health, agri-food) that maintains permanent rental pressure. Faubourg Boutonnet and the Antigone district remain our target areas.

Greater Paris

Above all a long-term wealth market. Gross yields are lower, but long-term appreciation and market liquidity make it a safe investment. We target the 11th, 12th, 18th, 19th and 20th arrondissements and the inner suburbs.

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