Buy-to-Let Investment in Paris: What Yield to Expect in 2026?

The average gross yield of a buy-to-let investment in Paris in 2026 is 3.2%. This figure rarely excites. Yet it is misleading, in both directions. Misleading because it masks considerable disparities between arrondissements: from 2.2% in the 6th to 4.2% in the 19th. And misleading because the gross yield is only a fraction of the real performance of a Parisian property investment, which also incorporates capital appreciation and the leverage effect of bank financing.

After more than 1,200 transactions since 2011, I observe that the first mistake investors make is comparing the Parisian gross yield with the yield of a savings account or a SCPI. That is comparing apples with aeroplanes. This guide presents the real figures, gross, net and net-net, and gives you the keys to honestly assess what a buy-to-let investment in Paris actually returns.

Gross, net, net-net yield: what are we actually talking about?

Before looking at figures by arrondissement, we need to agree on the definitions. The vocabulary of yield is riddled with approximations that distort comparisons.

Gross yield

The simplest and most misleading calculation. Annual rent excluding charges divided by the purchase price. Many listings and online simulators stop there. Problem: this calculation ignores everything that reduces real profitability: acquisition costs, charges, taxation, vacancy.

Formula: Annual rent excluding charges / Purchase price = Gross yield

A studio bought for 200,000 euros and rented at 700 euros/month shows a gross yield of 4.2%. Appealing on paper. But it is only the starting point.

Adjusted gross yield (total cost)

The first essential adjustment: incorporating the real cost of acquisition in the denominator. Purchase price + notary fees (approximately 8% for existing properties) + any works + furniture if furnished. This simple adjustment drops the yield by 0.3 to 0.5 points.

Formula: Annual rent excluding charges / (Price + notary fees + works + furniture)

The same studio actually costs 200,000 + 16,000 (notary) + 5,000 (refresh) = 221,000 euros. The yield drops to 3.8%.

Net yield after charges

We deduct from the annual rent all charges not recoverable from the tenant: co-ownership charges (landlord’s share), property tax, landlord insurance, vacancy provision, maintenance and minor works provision, management fees if you delegate.

Formula: (Annual rent - non-recoverable annual charges) / Total acquisition cost

In Paris, the gap between gross and net yield is typically 1.5 to 2 points. A property at 3.8% adjusted gross comes out at 1.8 to 2.3% net. This is considerable, and it is why you must always think in net terms.

Net-net yield (after tax)

The only yield that matters for your bank account. It incorporates the tax impact, which varies enormously depending on your tax regime (micro-foncier, regime reel, LMNP micro-BIC, LMNP regime reel) and your marginal tax bracket. An investor at 30% and an investor at 41% do not have at all the same net-net yield on the same property.

This is also why the choice of tax regime is not a detail: it is a major performance lever. I discuss this in detail in our LMNP guide.

Yield by arrondissement: the complete picture

Here are the average gross yields observed by arrondissement in 2026. These figures are orders of magnitude based on transaction data and market rents. Each property is unique, and the actual yield depends on the surface area, floor, condition and building quality.

High-yield arrondissements (3.5% and above)

The 19th arrondissement shows the best gross yield in Paris, around 4.2%. The price per m2 remains the most accessible in the capital (6,500 to 7,500 euros/m2) while rents hold up thanks to strong rental demand from students, young professionals and families. The 20th follows at 4.0%, driven by the ongoing gentrification of neighbourhoods like Jourdain and Gambetta. The 13th reaches 3.8% with a similar profile, strengthened by the university cluster and the developing area around the BnF. The 18th sits around 3.6%, with marked disparities between the touristy Montmartre and the northern parts of the arrondissement.

These arrondissements offer the best cash-on-cash return, but carry specific risks: sometimes uneven co-ownership quality, micro-neighbourhoods to avoid, less predictable capital appreciation than in established neighbourhoods.

Balanced arrondissements (3.0 to 3.5%)

The 10th arrondissement (3.5%) has been the darling of informed investors for five years: still reasonable prices, exceptional rental demand (Canal Saint-Martin, Gare du Nord for commuters), sustained appreciation. The 11th (3.4%) offers a comparable profile with Oberkampf and Charonne. The 12th (3.3%) and the 14th (3.2%) are more family-oriented, with remarkable rental stability. The 9th (3.2%) combines a decent yield with capital gain potential: Nouvelle Athenes and SoPi attract tenants with high purchasing power. The 17th (3.1%), notably the Batignolles sector, benefits from the spillover of the TGI and the Parc Martin-Luther-King.

This is the optimal zone for the majority of investors: the yield covers a significant share of the mortgage, rental demand is robust and appreciation over 10 years should be above the Parisian average.

Family arrondissements with moderate yield (2.8 to 3.0%)

The 15th (3.0%) is the largest arrondissement by population. Large volume of properties, good family demand, a decent yield without being spectacular. The 3rd and 4th arrondissements oscillate between 2.8 and 3.0%: the Marais is a special case where furnished tourist rental (within the 120-day limit) can supplement the yield.

Wealth-preservation arrondissements (below 2.8%)

The 8th (2.5%), the 7th (2.3%) and the 6th (2.2%) are the most expensive in Paris. The rental yield is mechanically low: prices per m2 exceed 12,000 to 16,000 euros while rents, even high in absolute terms, do not keep pace proportionally. You do not invest in these arrondissements for current income. You invest for safe-haven value, long-term appreciation and wealth transfer.

Why gross yield is not enough: comparative simulation

To illustrate the gap between gross yield and financial reality, let us take two typical investments and run the numbers through to net. A real case: our investment mission in the 14th at 4.6% gross yield, negotiated at -7.5%.

Comparative simulation: Studio in the 19th vs two-bedroom flat in the 10th

Property A: Studio 22 m2 in the 19th

• Purchase price: 154,000 euros
• Notary fees: 12,300 euros
• Works: 5,000 euros
• Total cost: 171,300 euros
• Monthly rent excluding charges: 590 euros
• Annual rent: 7,080 euros
• Adjusted gross yield: 4.13%

Annual charges:

• Non-recoverable co-ownership: 720 euros
• Property tax: 650 euros
• PNO insurance: 180 euros
• Vacancy (3 weeks/year): 406 euros
• Maintenance: 300 euros
• Total charges: 2,256 euros

Net rent after charges: 4,824 euros Net yield: 2.82%

Property B: Two-bedroom 38 m2 in the 10th

• Purchase price: 350,000 euros
• Notary fees: 28,000 euros
• Works: 10,000 euros
• Furniture: 7,000 euros
• Total cost: 395,000 euros
• Furnished monthly rent excluding charges: 1,200 euros
• Annual rent: 14,400 euros
• Adjusted gross yield: 3.65%

Annual charges:

• Non-recoverable co-ownership: 1,080 euros
• Property tax: 1,300 euros
• PNO insurance: 230 euros
• Vacancy (1 month/year): 1,200 euros
• Maintenance + furniture renewal: 600 euros
• LMNP accountant: 600 euros
• Total charges: 5,010 euros

Net rent after charges: 9,390 euros Net yield: 2.38%

In net yield, the gap between the two properties narrows considerably: from 0.48 points gross to 0.44 points net. But the real difference plays out elsewhere. The two-bedroom flat in the 10th, furnished under LMNP regime reel, benefits from accounting depreciation that reduces taxation to virtually zero for 15 to 20 years. The studio in the 19th, rented unfurnished under micro-foncier, will be taxed on 70% of gross rent from the first euro. In net-net yield, the furnished two-bedroom in the 10th often wins, despite a lower gross yield.

And over 10 years, capital appreciation in the 10th (a sector in active gentrification, +2.5 to 3% per year) will probably surpass the 19th (+1.5 to 2%). The overall yield, rents plus capital gain, clearly favours the 10th.

The lesson: never compare gross yields between arrondissements without factoring in charges, taxation and appreciation potential.

The charges that weigh on (or do not weigh on) your yield

Let us detail the charge items that transform an appealing gross yield into a sometimes disappointing net yield.

Co-ownership charges

The first item to examine, and often the most variable. In Paris, co-ownership charges oscillate between 25 and 60 euros/m2/year depending on the building. A building with a concierge, communal heating and a lift will be at the high end. A small building without a concierge or lift will be at the low end. On a 22 m2 studio, the difference between 25 and 55 euros/m2 represents 660 euros/year in extra charges, or 0.4 points of yield on a 170,000-euro property.

Systematically check the last three general meeting minutes. A facade renovation or a lift replacement can represent a call for funds of 5,000 to 15,000 euros per lot. This is a one-off but massive cost that destroys the profitability of one or two entire years.

Property tax

In Paris, property tax rose by 52% in 2023 (increase in the municipal rate decided by the City) on top of the annual inflation-linked revaluations. Now count 1 to 1.5 months of rent depending on the surface area and arrondissement. This is a fixed and trending upward charge: factor in a 3 to 5% annual increase in your projections.

Vacancy

In Paris, vacancy risk is structurally low, but it is not zero. Count 2 to 4 weeks per year for unfurnished rental (the turnover time between tenants) and 3 to 5 weeks for furnished (more frequent turnover). In a flat-share, vacancy can be higher if you manage room by room. Better to provision 5 to 8% of gross annual rent.

A point often overlooked: the quality of the property directly determines the length of vacancy. A bright, well-laid-out flat with a good energy rating re-lets in days. A dark ground-floor north-facing flat with an F energy rating will take three weeks and attract less reliable tenants. The quality of sourcing, finding the right property at the right price, is the primary yield variable.

Landlord insurance

Mandatory and reasonable: 150 to 300 euros/year depending on the size and coverage. A modest but not-to-be-forgotten item.

Maintenance and minor works

A reasonable provision is 1 to 2% of annual rent for current maintenance (plumbing, locksmithing, small repairs). For a furnished property, add renewal of furniture and appliances: count 500 to 800 euros/year as a smoothed provision.

The other half of yield: capital appreciation

Here is what fundamentally distinguishes Parisian property from most investments: the total return combines current rental yield AND latent capital gain.

Over the past 20 years, Parisian property has risen by an average of 3 to 4% per year, with peaks (2009-2012: +8%/year) and troughs (2023-2024: -3 to -5%). Even taking a conservative assumption of 2% per year, appreciation radically transforms the balance sheet of an investment.

Impact of appreciation over 10 years

Take a property bought for 350,000 euros with a net yield of 2.4%.

With 0% annual appreciation:

• Cumulative net rents over 10 years: approximately 94,000 euros
• Annualised total return: 2.4%

With 2% annual appreciation:

• Cumulative net rents: 94,000 euros
• Latent capital gain: approximately 77,000 euros
• Annualised total return: 4.5%

With 3% annual appreciation:

• Cumulative net rents: 94,000 euros
• Latent capital gain: approximately 120,000 euros
• Annualised total return: 5.6%

And these figures do not even account for the credit leverage effect. If you financed 80% of the property through borrowing, your return on equity is multiplied by a considerable factor. Over 10 years, a credit-financed Parisian investment commonly generates 8 to 12% annualised return on equity, combining rents, appreciation and repayment of borrowed capital.

This is the leverage that neither SCPIs, nor life insurance, nor a PEA can replicate. And that is why comparing the 3.2% gross yield of a Parisian flat with the 4.5% yield of a SCPI is an analytical error.

Comparison with other investments

Let us be objective. Parisian property is not the best investment in every configuration. Here is an honest comparison.

Euro-denominated life insurance

Average yield in 2025-2026: 2.5 to 3.5% depending on the contract. Guaranteed capital, liquidity within 72 hours, advantageous taxation after 8 years. It is the safety investment par excellence, but without leverage and with a real return (after inflation) close to zero.

SCPIs (Real Estate Investment Trusts)

Average yield: 4 to 5% gross in 2026. No management, no tenant hassle, accessible entry ticket (a few thousand euros). But: no significant leverage (credit financing of SCPIs is possible but less favourable), high entry fees (8 to 12%), uncertain liquidity (resale delay of several months), and heavy taxation on income (property income taxed at the marginal rate plus social contributions). And above all: you control neither the property selection, nor the management, nor the strategy.

Stock market (equities, ETFs)

Historic long-term return of the MSCI World: 7 to 8% per year. The best pure return over the long run. But the volatility is considerable: drops of 30 to 40% in a few months are recurrent. There is no reasonable leverage, no regular income comparable to rent, and the tangible dimension of the investment is absent.

Direct Parisian property

Gross yield: 3.2% on average. Net yield after charges: 1.5 to 3%. But: credit leverage (80 to 90% financing), historic appreciation of 2 to 4%/year, maximum rental security, possible tax optimisation (LMNP, property deficit). Drawbacks: active management, low liquidity (sale time of 2 to 4 months), high entry ticket, geographical concentration of risk.

The return on equity, combining all levers, sits between 8 and 12% per year over 10 to 15 years for a well-structured investment. It is the investment offering the best risk/return balance for those who accept active management and commit for the long term.

Jean Mascla’s advice. The best wealth strategy is not to choose between property, the stock market and precautionary savings. It is to combine all three. Parisian property is the pillar: the stable base, financed on credit, built over time. The stock market provides the pure return on available liquidity. Life insurance secures the cash position. Our most sophisticated investor clients have this triple allocation.

Optimising your yield: concrete levers

The yield of a Parisian investment is not fixed. Several levers allow you to improve it significantly.

The purchase price

The most powerful and most underestimated lever. Buying 5% below market price means gaining 0.2 points of yield instantly, and this saving compounds every year. At Home Select, our property hunters achieve an average of 6% negotiation on the asking price. On a 350,000-euro property, that is 21,000 euros saved, the equivalent of 22 months of net yield on a two-bedroom flat.

This negotiating ability alone justifies a property hunter’s fees for an investor. The best-negotiated properties are not those on listing portals seen by thousands of people: they are off-market properties, estates, forced sales. That is precisely the playground of our 16 hunters.

The tax regime

Switching from unfurnished rental under micro-foncier to furnished rental under LMNP regime reel can improve the net-net yield by 1 to 2 points, which is considerable. Accounting depreciation under LMNP regime reel is the most powerful legal tax lever accessible to an individual investor. Always consult an accountant before choosing your regime.

The letting strategy

Furnished rather than unfurnished: +15 to 25% in rent. Flat-sharing rather than standard letting: +30 to 40%. These strategies require more management but mechanically improve yield. The choice depends on your appetite for management and your tax profile.

Value-creating works

Buying a property in poor condition, renovating it properly and letting it furnished is the most profitable strategy on paper. A two-bedroom flat bought for 320,000 euros plus 40,000 euros of works, re-let furnished at 1,250 euros/month instead of 950 euros unfurnished in its original state: the gross yield rises from 3.6% to 4.2% while creating capital appreciation. All partly financed through the property deficit or depreciated under LMNP. This is the approach I detail in our article on renovating older properties.

Reducing charges

Choosing a building with controlled charges (no concierge, individual heating, well-maintained small building) can gain 0.3 to 0.5 points of net yield compared to a large building with services. This is not always compatible with rental appeal, a lift is virtually indispensable above the 3rd floor, but it is a parameter to factor into the sourcing.

Yield traps

The headline yield

Beware of listings showing 5 or 6% yield in Paris. This is almost always an unadjusted gross calculation (without notary fees or works) on a property with high charges, a disastrous energy rating or a rent above the regulated cap. The real yield after correction is systematically lower.

Rent control

Since 2019, Paris applies rent control with caps by neighbourhood, housing type, surface area and construction year. A property whose current rent exceeds the cap will need to be brought back to the reference rent at the next tenant change. Systematically check the maximum reference rent before buying: it is the legal ceiling of your rental yield. Our article on the tense housing zone in Paris details the concrete impact of this regulation for buyers. The data is available on the DRIHL website.

The second-home surcharge

If you plan to use the property part of the year (pied-a-terre) and rent it the rest of the time, the second-home council tax surcharge in Paris is 60%. This is a significant annual cost that can destroy the yield of a mixed-use arrangement.

An investment is not hunted like a primary residence: the criteria, analysis and negotiation are different. Our property hunters specialised in investment assess each property through the prism of overall yield, not emotional appeal.

Key takeaways

The rental yield in Paris in 2026 sits between 2.2 and 4.2% gross depending on the arrondissement: modest in appearance, but transformed by the leverage of credit and capital appreciation into one of the highest-performing wealth investments in Europe over 10 to 15 years.

The keys to a good Parisian yield: buy at the right price (hence the value of a property hunter), optimise the tax regime (LMNP regime reel for furnished, property deficit for renovated unfurnished), choose the right arrondissement for your strategy (pure yield, balance or wealth preservation), and think in overall yield, never in gross yield alone.

Paris will never excite the hunters of 8% yield. But Paris rewards patient, methodical and well-advised investors. It is a market where local knowledge makes all the difference, and that is exactly what our 16 hunters have been providing for 15 years.

Do you have a buy-to-let investment project in Paris? Optimise your investment with Home Select. First consultation free, fees 100% on success.