The requests for real estate renting are in clear progression in the small cities. This is partly due to the coronavirus pandemic. Individuals are looking for large spaces. Want to invest in real estate? Opt for real estate in locations away from major cities. Understanding this market is essential to your investment success.
Why invest in real estate in small towns?
Just like investing in downtown real estate, small town real estate also has its advantages. Large cities such as Paris or Marseille have a very high rental demand. However, the price of renting is not within the reach of everyone. On the other hand, smaller cities offer more attractive rates to attract investors with a small budget. It is easy to find a three-room apartment in Châtellerault for about a hundred thousand euros. For this reason, more than 43% of real estate searches on the internet are concentrated in rural areas.
An important profitability
In addition to the attractiveness of prices, real estate investment in small towns is more profitable than that in urban areas. Indeed, if the average profitability in large cities is 5%, it is 9% in rural areas. It is imperative to determine your objective in terms of investment in stone beforehand. Investing in a house in Chatellerault, for example, is advantageous if you want to have additional income.
How to make a successful real estate investment in small towns?
To succeed in your real estate investment in small towns, there are certain precautions to take.
The choice of the city
Although real estate investment in these places is profitable with an attractive price, you must select the area well. Favor localities where rental demands are high. This will allow you to find a tenant quickly, right after the purchase. High demand ensures that your home will not be vacant for a long period of time between tenants. In the opinion of a professional, it is wise to focus on areas with a young population. Preferably, opt for locations near universities. More than 45% of students are always looking for a place to rent in small towns close to their school. To find a tenant for your property immediately, prioritize rural towns that offer a good quality of life. Don’t overlook the vibrancy of the location. Indeed, small towns with economic development attract the majority of individuals.
Type of property
When it comes to the type of housing, opt for two- or three-bedroom homes. These are the most sought-after properties for tenants who want to get away from the pace of life in the big cities. In the last quarter of 2020, internet searches for houses increased by 58% compared to only 7% for apartments. Secondly, choose properties that do not require major repair work, especially if you are going to invest in an older home. Opt for a house that has a small green space or close to nature, if possible.
The rental price
In addition to the desire to get away from city life, most renters prefer small towns to enjoy a more attractive rent. Therefore, study the market in your reference area before setting the rent. Focus on better value for money.
The real estate market in small towns
A study of each city is imperative to understand the real estate market in rural areas. In general, the cost of renting in small towns tends to mimic that of larger cities. If you want to get a good deal, look for a house that is priced low so that you can rent or sell it at a higher price. When it comes to searching for real estate for investment in rural areas, you can use the Internet. To increase your chances and shorten the search time, use a real estate agency in Chatellerault.
Real estate investment in remote locations is booming. This is due to the good profitability of the investment and a growing demand. Indeed, with the health crisis and the confinement which prevail in the country, many are the French who wish to settle in these zones far from the big cities. The democratization of telecommuting and the restriction of travel are all reasons that have pushed individuals to want to move away from the big cities.