BeanstalkThe French turnkey rental investment platform has calculated the net return from “average” rental investments in about 33 future stations in the extension of metro lines 11, 12, 14 and RER E. Which provides the best rental profitability today and in five years?
The future Grand Paris Metro station will attract investors
The study focuses on the rental returns observed in neighborhoods that will host the future Grand Paris stations during the expansion of metro lines 11, 12, 14 and RER E.
Since the profitability around the already built stations has developed significantly since the project was launched, Beanstock was able to compare the rental profit of a 20 m² studio today and that projected in five years. The platform has taken into account the fare evolution that will be affected by the 33 newly established stations. Because once the line is in service, the rental price has an upward impact and, therefore, on the return on investment.
“The new Grand Paris lines often make the neighborhoods around the newly emerging stations more attractive. But there is always a gap between the increase in price per m² that starts as soon as the metro project is announced and the rent that actually starts after the line is opened”said Alexander Fitussi, co-founder of Beanstock.
Up to +22% profitability around a new station
Around the next stations planned by Grand Paris (isochrone: 10 minutes on foot), the study shows that the increase is the most Metro stations on lines 11, 12 and 14 outside Paris : The lessee can increase the net return on its investment by up to +22% within five years of commissioning of the metro line.
Around Neuilly Les Fauvettes and Neuilly Hôpitaux (line 11) stations, the net return can even go from 3.85% to 4.70%, i.e. a 22% increase in this city). The same phenomenon is observed next to Noisy-Champs station (line 11): from 2.96% to 3.61% (+22%).
Porte de Thiais, Orly Airport and Pont de Rungis: TOP 3
In top 3 five-year returns, rental investments near the MIN Porte de Thiais station in Chevilly-Larue (line 14) can offer up to 7.96%; Orly Airport station (line 14) 6.08% and Pont de Rungis (also line 14) 5.51%.
Expected average growth outside of Paris Around a new RER E station 18% is The next Les Mureaux station can even offer a 20.3% increase in the net profit of rented studios (increase from 3.55% to 4.27%). On this line, the prize for profitability goes to Nanterre La Folie station with 4.92% over five years.
In other cases, the net rent is close to the return on investment New station located inside Paris (Maison Blanche, Pont Cardinet) can grow by 10% over five years with a return of 4.56%.
*The study focuses on existing lines with direct access to Paris, the extension of which was voted for and work has begun. Beanstock teams are based on the historical evolution of fares when new modes of transportation arrive. The study does not account for potential capital gains on the property on resale.
