Home Select guided a Lyon-based investor through the purchase of a 38 m² two-room flat in the 11th arrondissement of Paris. Bought for 330,000 euros after a 5.7% negotiation, it returns a gross rental yield of 6.2%. Our property hunter completed the mission in 6 weeks.
Mission overview
- Property hunter: Home Select
- Area: 11th arrondissement, Charonne / Faidherbe neighbourhood
- Property type: two-room flat, 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 buy-to-let investment in Paris. His aim: a two-room flat in an arrondissement with strong rental demand, a gross yield above 5% and medium-term scope for capital growth. The 11th headed his list for its energy and for prices still reasonable next to the central arrondissements.
Living outside Paris, Philippe could not view at short notice. A good property often has to be seen within 24 to 48 hours, which a Lyon-Paris round trip cannot accommodate. That constraint led him to a property hunter.
The search strategy
Our property hunter set the investment brief: a two-room flat of 30 to 45 m², in good order or needing only light work (under 15,000 euros), in a building with no major works planned, within 10 minutes’ walk of a metro station. The target rent, drawn from local rental listings, was between 1,600 and 1,750 euros including charges.
The search settled on the Charonne-Faidherbe area, the best balance of yield and capital growth in the 11th: a price per m² 8% below Bastille, but the same transport (metro line 8, RER A at Nation) and equivalent rental demand.
Over four weeks, eight properties were assessed remotely with Philippe. Our property hunter viewed three, sending a detailed video report within the hour each time.
The property found
The flat they chose was on the 2nd floor of a 1905 building on Rue de Montreuil: 38 m², two rooms, with an 18 m² living room, a 12 m² bedroom, a separate kitchen and a shower room. Its overall condition was sound, the paintwork needing freshening but the kitchen and shower room functional and recent (redone in 2019).
The 12-unit building had co-ownership charges of 150 euros a month (cold water, common-area upkeep, insurance). The minutes of the last three general meetings recorded no major works. The D-rated EPC was typical for the building’s age.
The chief draw for an investor: the two-room 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 flat was listed at 350,000 euros, or 9,211 euros/m². Our property hunter built the negotiation file on three points: five recent sales in the same area (averaging 8,600 euros/m² for two-room flats on the 2nd floor), an estimated 8,000 euros of cosmetic work, and the D-rated EPC.
An opening offer of 320,000 euros drew a counter at 340,000 euros. The two sides settled at 330,000 euros, or 8,684 euros/m². At an estimated market rent of 1,700 euros a month, the gross yield came to 6.2%, above the initial target of 5%.
Philippe funded the purchase with a 280,000 euro loan over 20 years at 3.4%, plus a 50,000 euro deposit. After repayments and charges, the monthly cash flow is slightly positive.
What this mission illustrates
Buy-to-let in Paris still pays when you target the right micro-neighbourhoods. The Charonne-Faidherbe area of the 11th arrondissement yields above the Paris average, thanks to a moderate price per m² and steady rental demand from nearby Nation and Bastille.
Buying from afar needs a trusted intermediary. Philippe saw the flat only once, for the final viewing before the preliminary contract. The earlier viewings, the co-ownership checks and the negotiation were all handled by our property hunter, with a video report at each stage.
Negotiation on an investment is measured in yield points. The 20,000 euro saving is worth 0.7 of a yield point a year. Over 15 years, that opening gain comes to more than 10,000 euros in extra cumulative cash flow.
Thinking of a buy-to-let investment in Paris? Contact our team to explore the opportunities.
Frequently asked questions
What gross rental yield can you expect for a two-room flat in the 11th arrondissement?
A two-room flat 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 needing renovation, bought at a negotiated price, can reach the upper end of this range.
Is the 11th arrondissement a good choice for a buy-to-let investment in Paris?
The 11th arrondissement combines strong rental demand (students, young professionals), a price per m² 15% lower than the central arrondissements, and a vacancy rate below 2%. It is one of the most liquid arrondissements for resale.
Can a property hunter help improve the yield of a buy-to-let 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.
