Published on and written by Cyril Jarnias
Tours currently checks a lot of boxes for a real estate investor: a university and tourist city, a very tight rental market, prices still lower than in major metropolises, massive urban projects reshaping neighborhoods… But the picture is not uniform and winning strategies are not the same depending on whether you’re targeting a student studio, a family shared rental, or a rental building.
This article provides a comprehensive analysis of the Tours real estate market, based on recent data concerning prices, rental yields, and demographics. The study is detailed neighborhood by neighborhood and according to different types of properties.
Tours, a mid-sized metropolis… with very solid fundamentals
Tours is the largest municipality in the Centre-Val de Loire region and the heart of Tours Métropole Val de Loire, recognized as a metropolis since 2017. The urban area exceeds 360,000 inhabitants, and demographic projections foresee continued growth over the coming decades. The city itself has around 140,000 inhabitants, with a young population (median age of 35) and a very high proportion of students: over 30,000 enrolled at the university and in grandes écoles, representing more than 16% of the population.
The Tours metropolis is home to five national competitiveness clusters in sectors of excellence such as energy, cosmetics, and plant innovation.
In terms of quality of life, Tours boasts many advantages: location in the heart of the Loire Valley, UNESCO World Heritage site, “City of Art and History” label, immediate proximity to tourist castles and wine cellars, a rich cultural offering (Grand Théâtre, festivals…). Students and remote workers also appreciate the 55-minute TGV connection to Paris Montparnasse, a structuring tramway, a bus network (Fil Bleu), and nearly 150 km of bike lanes complemented by a long-term bike rental service (Vélocity).
The combination of accessibility, job opportunities, vibrant student life, and tourist appeal creates an extremely solid and resilient rental demand.
A tight and dynamic real estate market
Recent data confirms the dynamism of the Tours market. The average sale price for all properties is around €3,430/m², with an increase of about 34% over five years. Over one year, sale prices continued to rise by more than 5%. The market is tight: there are about 12% more buyers than available properties, with a “real estate tension” score of 10/10.
The structure of the housing stock illustrates the rental potential: only one third of residents own their primary residence, while 64.4% are tenants. Out of a total of approximately 82,600 dwellings, 88.5% are primary residences and nearly 9% are vacant, a pool for investors ready to renovate.
The distribution of store typologies shows that small and medium-sized stores are the most represented, indicating a dominance of this retail format in the analyzed sector.
| Typology (primary residences) | Number of dwellings | Share of stock |
|---|---|---|
| Studios | 11,555 | 15.8% |
| 2-room | 16,163 | 22.1% |
| 3-room | 17,406 | 23.8% |
| 4-room | 15,066 | 20.6% |
| 5-room and + | 12,945 | 17.7% |
The rental market is just as strong. The average rent is around €18/m² for furnished units and €13/m² for unfurnished rentals. Across all properties, gross yield is around 4.5%, slightly above the national average (4.2 to 4.8% depending on sources). Furnished units show an average gross yield of 4.66%, compared to 4.19% for unfurnished ones.
Looking at property types, detailed studies show particularly interesting gross yields for small units:
| Property type (City of Tours) | Average price | Average rent / month | Estimated gross yield |
|---|---|---|---|
| Studio (1 room, apartment) | €68,748 | €398 | 6.95% |
| 2-room (apartment) | €105,553 | €530 | 6.03% |
| 3-room (apartment) | €151,888 | €700 | 5.53% |
| 4-room (apartment) | €168,056 | €831 | 5.93% |
| 5-room (apartment) | €209,706 | €930 | 5.32% |
| 3-room (house) | €233,800 | €790 | 4.05% |
| 4-room (house) | €254,864 | €850 | 4.00% |
| 5-room (house) | €312,757 | €975 | 3.74% |
These figures correspond to financing simulations over 20 years at a low rate (around 1%), but even with current higher rates, they give an order of magnitude: studios and 2-room apartments dominate in gross yield, while houses and larger units offer more stability and potential long-term capital gains.
Prices and rents: where does Tours stand compared to the rest of France?
On a national scale, the average price is around €2,950 to €3,200/m². Tours, at €3,430/m², is therefore slightly above the French average, but far from the levels of Paris (€9,500/m²) or major metropolises like Lyon (€5,400/m²) and Bordeaux (€4,900/m²).
In terms of yield, Tours is in the good average of French cities: around 4.5 to 4.7% gross, while very tight cities like Paris are more around 3.6-3.8%, and some industrial cities in transition like Saint-Étienne or Roubaix exceed 7 or 8% but at the cost of higher rental and asset risk.
Rental yield in Tours
The Indre-et-Loire department shows an average yield of about 5.16%, slightly above the national average. In the nearby area, some towns offer impressive theoretical yields (over 12% in Preuilly-sur-Claise or Descartes, over 8% in Chinon), but in much narrower and less liquid markets. For an investor seeking a compromise between yield, rental security, resale prospects, and market liquidity, investing in Tours real estate remains the primary target.
A key driver: student demand and small units
With over 30,000 students, a comprehensive university of 26,000 enrollees, a specialized INSA, and numerous private schools (EFESUP, ESG, etc.), Tours is a true university city. Students represent over 16% of the population, and the metropolis aims to reach 50,000 students in the medium term.
The student housing stock is insufficient: the coverage rate of needs is around 65%, leaving a structural deficit of small units, especially studios and 1-bedrooms close to campuses and the tram. Housing specifically managed by CROUS or by private residences (Cardinal Campus, Nexity Studéa, Odalys Campus, UXCO Student, Les Estudines, Les Belles Années…) is not enough to meet demand, leading to a constant search for furnished rentals from private landlords.
Student rents are also relatively moderate on a national scale: around €415 to €480 for a studio, while the French average often exceeds €500 to €550 in large university cities. For an investor, this means a reasonable entry ticket and deep rental demand, particularly in the following neighborhoods.
The most promising neighborhoods for student rentals
Several areas stand out for those looking to invest in real estate in Tours targeting students and young professionals:
The city center and Old Tours, with Les Halles, offer a medieval atmosphere, half-timbered streets, and lively squares like Plumereau. This is the heart of student life, with many bars and restaurants. Real estate prices there are high (€4,000 to €5,000/m²), but rental vacancy is low. Demand is constant for furnished studios and 2-bedrooms. Gross yields are 4 to 5.2%, with strong potential for tourist furnished rentals or high-end shared housing.
– Cathedral neighborhood and Colbert / Nationale streets In the historic sector, close to Saint-Gatien Cathedral, the Fine Arts Museum, and university faculties, this neighborhood attracts students, young executives, and tourists alike. Prices vary between €3,400 and nearly €4,800/m² depending on sources. Well-renovated 2 and 3-bedrooms are in demand, with a gross yield of 3.8 to 4.8%.
– Train Station / Avenue de Grammont / Velpeau A sector highly appreciated by “commuters” to Paris thanks to the TGV (55 minutes), this neighborhood combines old buildings and more recent residences, shops, and transportation (tram, bus). Prices range between €3,400 and €4,100/m², with yields of 4.2 to 5.1%. Ideal for furnished rentals to professionals or for student shared housing.
This neighborhood in the south of the city is a major university and tertiary hub, bringing together numerous faculties, schools, and a University Institute of Technology. It features recent residences, shopping centers, and a landscaped setting. The buildings, generally energy-efficient, offer security regarding DPE standards. Prices per m² here are often lower than in the historic center, with typical rental yields between 4.2% and 5.4%.
– Beaujardin, Sainte-Radegonde, Tours Nord, Monconseil These sectors, well-served by tram and buses, offer more affordable prices, around €2,800 to €3,900/m² depending on the neighborhood, and gross yields of 4.4 to 5.6% for recent apartments. The clientele is mixed: students, young couples, families. New developments and major renovations driven by urban renewal programs are raising the average quality.
Again, small units remain king for profitability. Transaction data shows that in 2018, 401 studios were sold in Tours, more than any other typology, and with the best theoretical gross yield (6.95%). 2-room apartments come just behind in volume (541 sales) and yield (a little over 6%).
Yield, cash flow, and price trends: what the numbers say
The detailed price/rent tables allow a very concrete measurement of what an average investor can expect in Tours. Simply put, a good rental investment is often described locally as:
– A gross yield ≥ 5%
– A net yield (after recurring costs) ≥ 3.5%
– A “net-net” yield (after taxation) ≥ 2.5%
Based on average prices by typology, a clear hierarchy emerges:
| Property type | Average price | Monthly rent | Gross yield |
|---|---|---|---|
| Studio (apartment) | €68,748 | €398 | 6.95% |
| 2-room (apartment) | €105,553 | €530 | 6.03% |
| 3-room (apartment) | €151,888 | €700 | 5.53% |
| 4-room (apartment) | €168,056 | €831 | 5.93% |
| 5-room (apartment) | €209,706 | €930 | 5.32% |
| 3-room (house) | €233,800 | €790 | 4.05% |
Based on very favorable financing (rate close to 1% over 20 years), simulations even showed slightly positive cash flow for studios and 2-room apartments, and already tighter for larger units. With current rates around 3.5 to 4% over 20 years, these cash flows are mechanically reduced, but the hierarchy remains the same: the smaller (and well-located) the property, the higher the gross yield.
Analysis of the asset component of the real estate market over the 2014-2018 period, by property category.
Significant price evolution, reflecting sustained demand for this type of family asset and its appreciation potential.
Variable price dynamics depending on segments and locations, illustrating different investment strategies for rentals and residential use.
Distinct, often more volatile evolution, highlighting the specifics of the high-end and exceptional asset market.
| Typology | Change in average price 2014‑2018 |
|---|---|
| 5-room house | +20.4% |
| 3-room house | +10.6% |
| Studios (apartment) | +10.2% |
| 4-room house | +4.5% |
| 4-room apartment | –1.0% |
| 5-room apartment | –3.5% |
| 3-room apartment | –5.9% |
| 2-room apartment | –7.3% |
| 2-room house | –10.0% |
Large family homes have appreciated significantly, while average prices for large apartments have rather declined over the observed period. Studios have progressed moderately, driven by student demand, but remain more sensitive to cycles. This argues for differentiated strategies: small units for rental yield, townhouses and nice family apartments for long-term capital gains.
Where to find the best yields in Tours?
Beyond property types, some neighborhoods stand out for their average yield. For furnished rentals, an area like Bords de Cher reaches over 7% gross yield, for example. Other neighborhoods, less known to non-locals, also offer opportunities if one accepts a more working-class or transitioning environment, like Sanitas or certain pockets in northern Tours.
A summary table of prices per m² for studios in a few neighborhoods illustrates possible gaps:
| Neighborhood | Average studio price per m² |
|---|---|
| Turones | €5,750 |
| Saint-Étienne | €4,844 |
| Grandes Varennes | €4,341 |
| Beaumont | €3,646 |
| Saint-Symphorien | €3,548 |
| Sainte-Radegonde | €3,484 |
| Bel Air | €3,251 |
| Bords de Cher | €2,132 |
The lowest prices, like in Bords de Cher, combined with dynamic rents, explain very high gross yields on paper. Conversely, more expensive neighborhoods like Turones or certain parts of Saint-Étienne will be more defensive in terms of asset value, with performance mainly driven by long-term appreciation.
For an investor, the challenge is therefore to find the balance point between:
– Market liquidity (ease of resale)
– Depth of rental demand (students, professionals, families)
– Purchase price per m²
– Rental profile (furnished vs. unfurnished, shared housing, short-term, etc.)
Investment strategies suited to Tours
The Tours environment allows for several complementary strategies. They do not all appeal to the same investor profile or budget.
1. The furnished student studio near campus or downtown
This is the “classic” strategy and the one showing the best average gross yields (close to 7%). It relies on a fairly standardized checklist: size of 18 to 25 m², good internet connection, functional kitchenette, desk, storage space, and good transport access.
Target neighborhoods are the city center, Old Tours, Train Station/Velpeau, Tanneurs, Deux-Lions, Grandmont, Sainte-Radegonde, or Tours Nord near the new university hubs. The furnished LMNP (non-professional furnished rental) status allows tax optimization, either through the micro-BIC scheme (flat-rate deduction of 50% up to €77,700 in annual revenue) or through the actual regime with depreciation of the property and furniture over 20 to 30 years.
This investment strategy is strongly linked to the student presence. In Tours, educational institutions explicitly aim to increase their enrollment, supported by campus expansion projects. To compensate for summer vacancy, some owners opt for short-term rentals, targeting interns, tourists, or seasonal workers during the summer months.
The historic center, neighborhoods near the Train Station, Grammont, or Place des Halles still contain large old apartments (4-bedroom, 5-bedroom) that lend themselves very well to student or young professional shared housing. By segmenting the dwelling into 3 or 4 furnished bedrooms with attractive common areas (living room, equipped kitchen, possibly coworking space or terrace), it is possible to generate combined rents significantly higher than those of a traditional rental to a single family.
In a market where large units for family rental have struggled to appreciate as much as houses, shared housing becomes a way to restore economic sense to these spaces, while meeting a real social demand for affordable shared housing in the city center.
3. Furnished long-term rental for professionals and families
Tours also attracts many executives and technicians, particularly in healthcare, tech, higher education, and innovation hubs. For this clientele, standard or high-end furnished 2 or 3-bedrooms in neighborhoods like Prébendes, Beaujardin, Sainte-Radegonde, Saint-Cyr-sur-Loire, or Chambray-lès-Tours can offer excellent rental stability.
More recent residences (like Deux-Lions, Monconseil, and certain parts of Tours Nord) generally offer good energy performance (correct DPE) and controlled fees. This point is crucial with the Climate and Resilience law, which gradually prohibits renting energy-inefficient housing classified F and G (energy sieves).
4. Short-term and seasonal rentals
A tourist city of the Loire, a natural stopover to visit castles and vineyards, Tours experiences a constant flow of French and international tourists. Well-located furnished tourist accommodations (hyper-center, Old Tours, Cathedral, Loire riverbanks) can generate revenues 20 to 30% higher than those of a classic long-term rental, or even more during peak season.
This strategy requires mastering local regulations on furnished tourist rentals, which could tighten, and absorbing a heavier management load (cleaning, guest reception, marketing). It is particularly suited as a complement to a base of more stable rental income, for example in a mixed portfolio logic.
5. The rental building and renovation operations
With a significant old housing stock and neighborhoods undergoing deep urban transformation (Sanitas, Maryse-Bastié, Casernes, some northern sectors), Tours still offers the possibility to buy rental buildings or complexes to renovate. The city includes several sites within the framework of the New National Urban Renewal Program (NPNRU), with ambitious operations like the “Premières Lignes” project on the Marie-Curie block in Sanitas, or the redevelopment of former industrial wastelands in Tours Nord.
For an investor capable of managing renovation work (energy improvement, reconfiguration, unit division, creation of coliving), the potential added value is significant: better net yield, asset appreciation, and security regarding new energy performance obligations.
Urban planning, major projects, and impact on real estate
A determining element when wanting to invest in real estate in Tours is the depth of ongoing urban transformations. The metropolis has launched or planned multiple projects that will redraw the balance of certain sectors and thus the prospects for capital gains.
Among the structuring operations, we can cite:
Discover the main structuring projects transforming the city of Tours, improving mobility, revitalizing neighborhoods, and enriching the offering of housing, facilities, and green spaces.
Strengthens north-south and east-west connections, serves the Grandmont, Deux-Lions, Sanitas, Maryse-Bastié neighborhoods, and creates a new network around areas undergoing renewal.
Transformation of an industrial wasteland near La Petite Arche into a mixed-use neighborhood of 5 ha with housing, intergenerational residence, offices, shops, community gardens, and green spaces.
Gradual opening of a large 1.8-hectare tree-lined park in the heart of the neighborhood, preserving biodiversity and improving local quality of life.
Transformation into a mixed tertiary and commercial complex, including the Bank of France and a gourmet hall with a rooftop (“La Belle Vue”) offering a view of the cathedral.
Creation in an emblematic bioclimatic building near the center, contributing to the city’s cultural image and stimulating neighborhood uses.
Operation comprising 500 dwellings, 40,000 m² of tertiary space, crafts, shops, and a central park of 18,000 m².
These projects fit into a robust financial framework: Tours Métropole has sought funding of around €125 million from the European Investment Bank for a global program of €280 million covering urban renewal, sustainable mobility, water management, and social facilities. The city of Tours itself has allocated nearly €49 million of investments in its recent annual budget, while progressively reducing its debt.
For the investor, some neighborhoods currently perceived as ‘up-and-coming’ (like Sanitas, Maryse-Bastié, la Rabaterie in Saint-Pierre-des-Corps or la Rabière in Joué-lès-Tours) present an opportunity. They will benefit in the medium term from a clear improvement in their environment: construction of new schools, sports facilities, green spaces, arrival of new shops, and renovation or reconstruction of housing. Entry prices are lower there, but this strategy relies on the proper execution of renewal programs and requires a long-term investment horizon.
Rental management: a developed ecosystem in Tours
Investing in real estate in Tours is not just about buying a property: the real performance of the operation largely depends on rental management. On this front, the city has a dense ecosystem of professionals. The Centre-Val de Loire region has over a hundred property management companies, with 34 in Tours alone, a figure that has increased by more than 5% in two years.
The range goes from major national groups (Citya Immobilier, Foncia, Century 21, etc.) to more local players like Ligeris, a private Touraine company managing over 8,200 dwellings and 24,000 m² of commercial space, including well-established independent agencies (OWIMO, 123webimmo, etc.) and concierge services dedicated to short-term stays.
The services offered cover:
The main property management activities include: classic rental management (tenant search, leases, rent collection, move-in/out inspections, claims); condominium management (running meetings, managing works, the works fund, global technical diagnostics, and collective DPEs); management of serviced residences (student, senior, or business with commercial leases); and management of furnished tourist rentals or medium-term professional stays.
Sector data shows that professional management can reduce operational costs by about 30% compared to self-management thanks to established processes, while increasing tenant satisfaction and retention (retention rate approximately 40% higher). Some investors still choose to manage themselves to preserve cash flow, especially for small units in a limited geographical area.
Regulatory context, taxation, and financing
Finally, it is impossible to talk about real estate investment without addressing the fiscal, regulatory, and financing constraints, even briefly.
Legally, France offers a very secure framework, also for non-residents. The right to property is protected by the Constitution, transactions are overseen by notaries, and foreigners can buy under the same conditions as French citizens. For rentals, however, one must deal with several structuring elements:
The Climate and Resilience law progressively prohibits renting very energy-inefficient housing (class G then F). In Tours, with a significant old housing stock, this represents a risk for owners of energy sieves, but also a valorization opportunity: a renovation moving from D to B can increase value by about 12%. Taxation distinguishes between unfurnished rental (property income) and furnished (BIC business income). The furnished LMNP regime allows depreciation of the property and reduces taxation. For capital gains, income tax is exempt after 22 years of ownership and social charges after 30 years, favoring a long-term strategy.
On the financing side, conditions have tightened compared to the period of very low rates but remain attractive on a European scale: fixed rates for good applications are around 3 to 4% over 20-25 years, and French banks remain willing to finance non-residents with a more substantial down payment.
Acquisition costs represent on average 7 to 8.5% of the purchase price for an existing property.
How to build a coherent strategy in Tours?
Starting from all this data, a rational approach to investing in real estate in Tours could follow several key steps, which serve as an analysis grid rather than a fixed recipe.
Before investing, it is crucial to clarify your primary objective (seeking immediate yield, retirement planning, securing an asset, tax optimization via furnished rental, geographical diversification, etc.) and determine your target holding horizon (5, 10, 20 years). This choice conditions neighborhood selection: an established sector (e.g., Old Tours) offers quicker and more certain appreciation, while an area undergoing urban renewal (e.g., Sanitas in NPNRU) requires a more patient investment.
Then, align this project with a realistic budget: in Tours, a well-located 2-bedroom of 35‑45 m² generally requires between €160,000 and €230,000, including notary fees, depending on the level of finish and neighborhood. With a tighter budget, a studio in an area like Bords de Cher, Beaujardin, Tours Nord, or slightly off the hyper-centers remains accessible while offering a high gross yield.
To evaluate the profitability of a rental property, it is crucial to analyze its micro-location (quality of the street, proximity to public transport, campuses, and shops) and its intrinsic quality (energy performance/DPE, condition and fees of the condominium). A property at a slightly higher price but with an excellent DPE and a healthy condominium is often more profitable in the long term than a cheap product of lesser quality.
Finally, address the question of management early on: self-management or delegation to an agency or residence manager? Unfurnished rental to meet family demand or furnished to optimize taxation and target students/young professionals? Shared housing to boost rents or, conversely, a more classic lease to limit tenant turnover? Tours offers enough market depth for several combinations to be relevant, provided they are committed to and quantified.
Conclusion: a mid-sized city, a confirmed investor potential
Investing in real estate in Tours is betting on a French mid-sized metropolis that has already largely proven its dynamism, resilience, and attractiveness, without the price excesses of larger cities or the economic fragility of some struggling territories.
The market remains tight, driven by a high proportion of tenants, chronic student demand, a significant tourist flow, a diversified economy, and a massive urban renewal program. Gross yields are competitive, especially on well-located small units, and the asset component is solid, particularly on family homes and quality central neighborhoods.
For a profitable and sustainable rental investment in Tours, it is essential to analyze the neighborhood map, follow the dynamics of major urban projects, and master the challenges of energy performance. A precise understanding of how furnished rentals work is also crucial. The city offers varied opportunities, from the student studio to the rental building, including designer shared housing and serviced residences.
In a national context where the real estate market becomes more selective and very localized, Tours clearly stands out as one of these “good compromises” sought by investors: large enough to offer depth, affordable enough to remain accessible, dynamic enough to face the future with confidence.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
