France’s residential property market has quietly become more attractive for rental investors, with gross rental yields ticking up toward the end of 2025. According to data compiled from Global Property Guide and Seloger, the national average gross rental yield rose from 4.63% in the second quarter of 2025 to 4.84% in the fourth quarter, reflecting firmer rents and stabilising property prices across key cities.
At a headline level, the numbers suggest France continues to offer steady, mid-range returns rather than eye-popping yields. But a closer look shows sharp differences depending on city, location and apartment size. Smaller homes, especially studios, consistently outperform larger units, a trend driven by strong demand from students, young professionals and short-term renters.
Paris remains the most closely watched market. The French capital delivers an average gross rental yield of around 5.24%, slightly above the national mean. However, yields vary dramatically within the city. In high-priced neighbourhoods such as the 16th arrondissement, large three-bedroom apartments yield as little as 3.60%, reflecting steep purchase prices. At the other end of the scale, studios in more affordable districts like the 20th arrondissement can deliver yields as high as 9.03%. Overall, Paris studios average about 6.8%, while one-bedroom units yield around 5.15%.
Outside Paris, several cities offer comparable or even better average yields, often with lower entry prices. Marseille leads the pack among major urban centres, with an average gross rental yield of 5.45%. Here too, smaller apartments dominate, with studios yielding about 6.47% on average. Certain districts, such as the 10th arrondissement, show even stronger returns across apartment sizes, supported by relatively low property prices and stable rental demand.
Nantes is another strong performer, posting an average yield of 5%. One-bedroom apartments in the city stand out, offering yields above 5.5%, making it a popular choice for investors seeking balance between affordability and rental stability.
Montpellier follows closely with an average yield of 4.78%, driven by solid student demand and a steady inflow of young residents. Bordeaux and Toulouse both hover around the mid-4% range, with studios again emerging as the most lucrative segment. Bordeaux studios, for instance, offer yields above 6%, while Toulouse studios average around 5.6%.
Lyon and Nice sit slightly lower on the yield table, with averages of 4.41% and 4.54% respectively. In both cities, high purchase prices in prime areas compress returns, particularly for larger apartments. Even so, studios in these markets continue to outperform larger units, reinforcing the broader national pattern.
It is important to note that all the figures quoted are gross yields. In practice, investors must factor in taxes, maintenance expenses, insurance, property management fees and other costs. These typically reduce net rental yields by about 1.5% to 2%. As a result, a gross yield of 5% may translate into a net return closer to 3% to 3.5%, depending on individual circumstances and financing structures.
Still, the data highlights why France remains attractive to long-term, income-focused investors. While yields are not the highest in Europe, they are relatively stable and supported by strong tenant demand in major cities. For investors willing to focus on smaller units and carefully chosen locations, France’s rental market continues to offer predictable returns in a mature and regulated environment.
