Real Estate Investment: 4 Key Figures to Remember in 2018

1.48% – Exceptionally low mortgage rates

During Q1 2018, the average mortgage rate (excluding insurance) stood at 1.48%, nearly identical to 2017 levels.
This stability continues to support:

• strong borrowing capacity,

• attractive financing conditions,

• strategic acquisitions in competitive markets.

Despite predictions of rising rates, the increase remains very gradual, making 2018 an excellent window for real estate investment.

2021 – The end date of the Pinel tax incentive

The Pinel tax incentive, a leading tool for new-build buy-to-let investment, remains available until December 31, 2021.

It offers a tax reduction of up to 21% for a 12-year rental commitment in high-demand zones (A, A bis, B1).
The property must be:

• rented unfurnished,

• at a rent approximately 20% below market levels,

• priced under €300,000 or €5,500/m²,

• possibly rented to a parent or child.

An ideal solution for investors seeking long-term stability and tax efficiency.

7% – Potential rental yield in existing properties

Rental yields may reach 7% in some medium-sized cities.
In major metropolitan areas, yields average:

• 4–5% in large regional cities,

• 2–3% in Paris.

Yield optimization strategies include:

• targeting properties near transport networks,

• exploring suburban markets,

• choosing buildings with low common charges,

• leveraging renovation works for tax efficiency.