La Réunion department Property Prices, Rents & Rental Yields

About La Réunion department

La Réunion combines a tropical island setting with the administrative depth of a French department, giving it a distinctive housing market shaped by geography, limited land, and everyday local demand. For investors, that blend often shows up in pricing that reflects both lifestyle appeal and practical supply constraints.

August 2026 brings the clearest signal for houses in La Réunion: sale prices have eased while income metrics are still moving higher. The average sale price now stands at €380,000, down 1.8% month over month, while the average price per square metre has also slipped 1.8% to €2,920. That softening in entry values contrasts with a year-on-year rise of 3.3% in the average sale price, suggesting that the recent pullback sits within a broader upward trend rather than a full reversal.

The rental side points to a similar tension. Average rent has climbed to €1,730, up 2.6% on the month and 4.1% over the year. Against those figures, the gross yield of 6.04% remains the key investment marker: decent on paper, but now framed by a market where purchase prices have cooled faster than rents have. For buyers tracking timing, August looks less like a turning point than a moment of recalibration, with house values under short-term pressure even as rental growth continues to support returns.