Paris Furnished Rentals Barometer – Second Quarter 2018: Increase in visits by Europeans and in stays for professional reasons

In Paris, the prices of furnished rentals have seen a slight increase during the second quarter of the year: €37.77 / m2 / month on average, which is an increase of +1.5% compared to the same period in 2017. Whilst the Observatoire Clameur has declared a decrease of -0.6% in rent prices in the whole of the Parisian rental market, furnished rentals continue to do well.
However, Lodgis has noted a slight decline in prices in the centre of Paris: this trend can be explained by the fact that landlords who resorted to using Airbnb to rent out their properties, often located in the central and tourist areas of Paris, now prefer classic furnished rentals in order to escape the pursuits of Paris City Hall. Lodgis has also found that the proportion of properties available for furnished rental in the first 8 arrondissements has increased by 5 points in a year.
The prices of furnished rental apartments situated outside the centre of Paris have seen an increase of +2.6%. These arrondissements are in fact more and more sought after as they offer attractive rent prices and more authentic Parisian living.
The general development of rent prices for furnished apartments in Paris (+1.5%) naturally follows the inflation of prices (+2.1% in June 2018 according to Insee).

Increase in the number of visits by Europeans

Nearly 33% of people renting furnished apartments in Paris are of French origin, a stable figure compared to the second quarter of 2017, proving the persistent attraction of furnished rentals for French people living in the area or abroad who need a property in the capital. Representing 30.5% of rentals carried out in the last three months, Europeans remain in 2nd place of this ranking, with a constant increase of 3.5 points in their number of visits which illustrates the return of economic growth in Europe and the appeal of Paris. The proportion of North American tenants remains stable at 14%. However, the proportion of South American tenants has dropped by 2.5 points, as well as the proportion coming from Asia, which has fallen for the 2nd consecutive year (-2 points).

Rentals for professional reasons is on the rise

The statistical data concerning the motives for a tenant’s stay in a Parisian furnished rental has been stable every year. Nevertheless, there is a nice surprise regarding rentals for professional reasons (temporary move, training, assignment for a few months), which have increased by 5 points this quarter (56%). The demand of companies for housing their workers on business trips in the French capital therefore remains the main reason for resorting to furnished rentals.
At the same time, Paris has overtaken London for the first time as the most attractive European city for foreign bosses (37%) according to the last barometer on the international appeal of France published by EY in June 2018. “The methods used to attract foreign enterprises, especially after Brexit, as well as the return of French and European growth, are factors which allow Paris to become appealing to professionals from around the world” observes Maud Velter, Associate Director at Lodgis.

Student rentals (22%) have seen a slight decrease of 3 points. Nearly a quarter of furnished rentals in Paris welcome university students or those studying at the Grandes Écoles.

Stays for personal reasons (22%) have also fallen slightly (-2 points). Despite this slight decline, furnished rentals provide a solution every year in a fairly constant proportion to situations such as having work done in the main residence, supporting a family member who is in the hospital or even finding temporary housing following a separation, or returning to expat life.

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