Home Select supported a Lyon-based investor in the purchase of a 38 m² 2-bedroom apartment in the 11th arrondissement of Paris. The property, acquired for 330,000 euros after a 5.7% negotiation, generates a gross rental yield of 6.2%. Our property hunter completed this mission in 6 weeks.
Mission overview
- Property hunter: Home Select
- Area: 11th arrondissement, Charonne / Faidherbe neighbourhood
- Property type: 2-bedroom apartment, 38 m²
- Initial budget: 350,000 euros
- Listed price: 350,000 euros
- Purchase price: 330,000 euros (-5.7%)
- Search duration: 6 weeks
- Buyer profile: Investor, aged 45, based in Lyon
The project
Philippe, a senior executive in Lyon, wanted to make his first rental investment in Paris. His objective: a 2-bedroom apartment in an arrondissement with strong rental demand, offering a gross yield above 5% and medium-term capital appreciation potential. The 11th arrondissement topped his list for its vibrancy and prices that remain accessible compared to central arrondissements.
Not living in Paris, Philippe could not make himself available for short-notice viewings. An interesting property often requires a visit within 24 to 48 hours, a timeframe incompatible with a Lyon-Paris round trip. This constraint led him to engage a property hunter.
The search strategy
Our property hunter defined the investment brief: a 2-bedroom apartment of 30 to 45 m², in good condition or requiring light works (under 15,000 euros), in a building with no major works scheduled, within 10 minutes’ walk of a metro station. The target rent, determined by analysing rental listings in the neighbourhood, was between 1,600 euros and 1,750 euros including charges.
The search focused on the Charonne-Faidherbe area, identified as the best yield-to-capital-growth balance in the 11th: price per m² 8% lower than the Bastille area, but the same transport links (metro line 8, RER A at Nation) and equivalent rental demand.
Over four weeks, eight properties were analysed remotely with Philippe. Three viewings were carried out by our property hunter, with a detailed video report sent within the hour.
The property found
The chosen property was on the 2nd floor of a 1905 building, Rue de Montreuil. A 38 m² 2-bedroom apartment with an 18 m² living room, a 12 m² bedroom, a separate kitchen and a shower room. The general condition was satisfactory: paintwork to be refreshed, but the kitchen and shower room were functional and recent (renovated in 2019).
The building, comprising 12 units, had co-ownership charges of 150 euros/month (cold water, common area maintenance, insurance). No major works were planned according to the minutes of the last three general meetings. The D-rated EPC was standard for the building’s era of construction.
The key advantage for an investment: the 2-bedroom layout with a separate bedroom, the most sought-after configuration among young professionals renting in the area. Faidherbe-Chaligny metro (line 8) was a 4-minute walk away.
The negotiation
The property was listed at 350,000 euros, or 9,211 euros/m². Our property hunter prepared a negotiation file based on three elements: analysis of five recent sales within the same perimeter (average of 8,600 euros/m² for 2-bedroom apartments on the 2nd floor), the estimated 8,000 euros in refreshment works, and the D-rated EPC.
The initial offer of 320,000 euros prompted a counter-proposal at 340,000 euros. The agreement was reached at 330,000 euros, or 8,684 euros/m². With an estimated market rent of 1,700 euros/month, the gross rental yield reached 6.2%, a result exceeding the initial target of 5%.
Philippe financed the purchase with a 280,000 euro loan over 20 years at 3.4%, supplemented by a 50,000 euro deposit. The monthly net cash flow, after repayments and charges, is slightly positive.
What this mission illustrates
Rental investment in Paris remains profitable when you target the right micro-neighbourhoods. The Charonne-Faidherbe area of the 11th arrondissement offers yields above the Paris average thanks to a moderate price per m² and sustained rental demand driven by the proximity of Nation and Bastille.
Buying remotely requires a trusted intermediary. Philippe only visited the property once, for the counter-visit before signing the preliminary sales agreement. Preliminary viewings, co-ownership checks and the negotiation were handled entirely by our property hunter, with video reports after each stage.
Negotiation on an investment property is measured in yield points. The 20,000 euro saving represents 0.7 additional yield points per year. Over 15 years, this initial gain translates into over 10,000 euros in additional cumulative cash flow.
Considering a rental investment in Paris? Contact our team to explore the opportunities.
Frequently asked questions
What gross rental yield can you expect for a 2-bedroom apartment in the 11th arrondissement?
A 2-bedroom apartment in the 11th arrondissement offers a gross rental yield of 4.5% to 6.5% depending on the condition of the property, the floor and proximity to transport. Properties requiring renovation with a negotiated purchase price can reach the upper end of this range.
Is the 11th arrondissement a good choice for a rental investment in Paris?
The 11th arrondissement combines strong rental demand (students, young professionals), a price per m² that is 15% lower than central arrondissements, and a vacancy rate below 2%. It is one of the most liquid arrondissements for resale.
Can a property hunter help optimise the yield of a rental investment?
A property hunter specialising in investment identifies undervalued properties, negotiates the purchase price (average saving of 4% to 7% at Home Select), and verifies the actual rental potential by cross-referencing market rents with co-ownership charges.
