With rising interest rates, stabilized selling prices, and new tax constraints, many property owners are wondering where rental investment remains truly profitable.
Good news: in major cities where Lodgis operates — such as Paris, Lyon, Bordeaux, Toulouse, Aix-en-Provence, and Montpellier — traditional furnished rentals continue to perform well.
Offering better profitability than unfurnished rentals and more flexible regulations than short-term rentals, furnished letting remains the most balanced solution for landlords seeking peace of mind while increasing their property’s value.
Despite a more demanding real estate market, rental demand remains strong in France’s major cities. Students, young professionals, and employees on temporary assignments continue to favor furnished accommodation for its flexibility and comfort.
For landlords, the advantages are clear:
At Lodgis, a specialist in furnished rentals for over 25 years, we support thousands of property owners each year in these major cities where furnished rentals remain a solid investment.
In the capital, purchase prices per square meter are among the highest in France (around €9,600/m² on average), but furnished rentals make the most of it. A furnished property rents for an average of €42/m² per month, delivering a gross yield of 5.24%, compared to just 4.32% for unfurnished rentals.
The difference is significant: furnished rentals attract an international clientele, students, and professionals on assignment who value comfort and flexibility. Compared with a more restrictive unfurnished rental bound by a three-year lease, furnished rentals offer landlords better profitability and controlled tenant turnover.
With an average purchase price of around €4,900/m², Lyon appeals to investors seeking a stable market. A furnished apartment rents for about €22/m² per month, generating a gross yield of 5.34%, while an unfurnished property offers around 4.4%.
Demand is strong and increasingly driven by professionals, who now represent 62% of tenants. The result: Lyon’s furnished market combines steady returns with long-term asset security. For more insights into Lodgis tenants’ profiles, check out our Q3 2025 furnished rental market report.
In Bordeaux, the average purchase price per square meter is around €4,600, with furnished rents averaging €16.5/m² per month. This equates to a gross yield of 4.32%, compared with 3.56% for an unfurnished property.
This difference can be explained by strong rental demand in popular neighborhoods (Chartrons, Bastide, Saint-Michel), as well as tenant profiles: young professionals, executives, and students looking for ready-to-live-in homes. At Lodgis, we already manage numerous furnished apartments in these areas, where demand remains high — a true sign of stability and profitability for property owners.
The “Pink City” offers one of the best price-to-yield ratios among France’s major metropolitan areas. With an average purchase price of €3,676/m², a furnished property rents for around €16.3/m² per month, giving a gross yield of 5.32%, compared to 4.39% for an unfurnished property.
The difference is substantial, confirming that furnished letting remains the most profitable option thanks to a dynamic rental market and strong economic attractiveness.
A city of art and culture, Aix-en-Provence shows an average purchase price of €5,756/m², with furnished rents around €21.9/m² per month. The gross yield thus reaches 4.48%, compared with 3.70% for unfurnished rentals.
Tenants here favor comfortable furnished properties, often for business stays or long-term studies. Unfurnished homes tend to take longer to re-let and generate lower returns. Furnished rentals therefore maximize rental income while meeting a stable and high-quality demand.
With an average purchase price of €3,334/m², furnished rentals offer the highest gross yield among the six cities, at 5.68%, compared to 4.68% for unfurnished rentals. Average rents stand at just under €16/m² per month for furnished units, and €13/m² per month for unfurnished properties.
Montpellier continues to experience strong population growth, driven by students, researchers, and young professionals. Furnished rentals combine high returns, quick turnover, and simplified management — whereas unfurnished rentals are less flexible and limit income potential.
| Cities | Price/m² | Furnished monthly rent/m² | Unfurnished monthly rent/m² | Furnished Gross Yield | Unfurnished Gross Yield |
|---|---|---|---|---|---|
| Aix-en-Provence | 5756* | 21.51 | 17.74 | 4.48% | 3.70% |
| Toulouse | 3676* | 16.29 | 13.43 | 5.32% | 4.39% |
| Montpellier | 3334 | 15.77 | 13.01 | 5.68% | 4.68% |
| Bordeaux | 4604* | 16.57 | 13.67 | 4.32% | 3.56% |
| Lyon | 4926 | 21.93 | 18.09 | 5.34% | 4.41% |
| Paris | 9633 | 42.03 | 34.67 | 5.24% | 4.32% |
Table reading note: figures are indicative averages collected in November 2025 from Lodgis data (price/m² and furnished monthly rent/m²), except for price/m² marked with an asterisk *, which come from SeLoger.com.
The gross yield was calculated as follows:
Gross Yield (%) = (Monthly rent/m² * 12) / (Price/m²) with Unfurnished monthly rent/m² = Furnished monthly rent/m² * 0.825. Unfurnished rents are 15% to 20% lower than furnished rents.
For several years, short-term rentals offered property owners a highly profitable opportunity. But in 2025, the trend has reversed: with 120-day (or even 90-day) annual caps, registration requirements, tourist taxes, and tighter taxation, this model is losing its edge.
In Paris, Lyon, and Bordeaux, local authorities have increased controls and imposed stricter procedures, while booking platforms (Airbnb, Booking, etc.) are now subject to automatic tax data sharing with the government.
As a result, the net profitability of short-term rentals has declined, often falling below that of a well-managed long-term furnished rental. For many landlords, traditional furnished letting now stands out as the best compromise: solid profitability, stable occupancy, and simplified management.
In the major cities where Lodgis operates — Paris, Lyon, Bordeaux, Toulouse, Aix-en-Provence, and Montpellier — long-term furnished letting remains the most profitable and secure option for landlords.
It offers a gross yield advantage of 0.7 to 1 percentage point over unfurnished rentals, while allowing greater management flexibility and more favorable tax conditions.
Conversely, unfurnished rentals restrict flexibility with longer leases and lower yields, while short-term rentals have become overly complex and less profitable.
In 2025–2026, the conclusion is clear: furnished rentals remain the most profitable and balanced rental model, especially in major French cities where Lodgis provides expert guidance to property owners. If you’re considering renting out your property, contact us to get all the information you need.
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Our advice on furnished rentals in Paris.
Our advice on furnished rentals in Aix en Provence.
Our advice on furnished rentals in Bordeaux.
Our advice on furnished rentals in Grenoble.
Our advice on furnished rentals in Lille.
Our advice on furnished rentals in Lyon.
Our advice on furnished rentals in Montpellier.
Our advice on furnished rentals in Nantes.
Our advice on furnished rentals in Strasbourg.
Our advice on furnished rentals in Toulouse.