Barometer of the furnished rental market in Paris – 3rd quarter 2019

The 3rd barometer of 2019 for Lodgis, a leader in the furnished rental market in the Ile-de-France area, reviews the latest market developments: a confirmed attraction to this type of accommodation for professionals in mobility and tenants of French nationality, the limited effects of rent control on prices and the confirmed success of the ‘Bail Mobilité’ (mobility lease).

Professionals in mobility are more and more attracted to furnished rentals

40% of tenants in furnished properties in the 3rd quarter are professionals in mobility, which is an increase of 5 points compared to the 3rd quarter 2018. The introduction of the Bail Mobilité explains this increase: “The Bail Mobilité responds to a real need for temporary housing and is a genuine facilitator for stays of one month or more for tenants. This new lease also appeals to landlords, as it allows you to rent for shorter periods while benefiting from the advantages of traditional furnished rentals (flexibility, taxation, etc.)”, explains Alexis Alban, COO at Lodgis.

Students are also a large number of students in this quarter with schools going back: 52%, like in the 3rd quarter 2018.

The other reasons (relocation for work, hospitalisation, separation, etc.) are down slightly and represent 9% of furnished rentals.

The French are still in favour of furnished rentals

In the 3rd quarter 2019, 31% of furnished rental tenants in Paris were of French nationality, which is an increase of 5 points compared to the same period of 2018. This confirms the trend already announced in the 2nd quarter 2019 and is also partly explained by the introduction of the Bail Mobilité.

The proportions of other nationalities are logically slightly down for this 3rd quarter.

A slight increase in rents in the Paris market, limited by rent control

As in the previous quarter, Lodgis noted a slight increase in Parisian rents per m2, by +1.3%, which corresponds to the overall trend in the property market (IRL - reference index of French real estate market rents: +1,20%).

It is the rents of properties in the 9th to 20th arrondissements that have increased somewhat, while those in the central arrondissements of Paris have remained stable: “Rent control can explain this phenomenon: since it came into effect on the 1st July last year, the rents in the centre of Paris have been contained, while the rents in other arrondissements, which are historically lower, had a greater margin for growth”, explains Alexis Alban. “We notice above all that rent control has not had an impact on market prices. At Lodgis, 95% of our landlords were already in compliance with the rental limits at the time of its implementation and we continue to support them in this regard”.

Also, the average duration of furnished rental stays is increasing: tenants stay on average 15 more days in their accommodation (231 days in the 3rd quarter 2019, against 216 in the 3rd quarter 2018). This allows landlords to maximise occupation rates, and therefore the profitability of their furnished property.

A clear success for the Bail Mobilité

Approved by student tenants or professionals in mobility and by landlords, the Bail Mobilité confirms its success: this quarter, more than 30% of leases signed at Lodgis were Bail Mobilité’s.

“We are convinced that the Bail Mobilité is a genuine solution to adapt to the demands and needs of students and professionals in mobility, of which the number continues to increase in major French cities”, explains Alexis Alban. “We are proud to have implemented it since its launch at the end of November 2018”.

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