Furnished rentals more and more sought after by the French

The 2nd barometer of 2019 for Lodgis, specialist in furnished rentals in the Île-de-France region, confirms the trends of the real estate market outlined at the start of the year: there are more and more French tenants, a slight rise in rents in Paris and confirmed success of the ‘bail mobilité’.

The French are becoming more and more keen on furnished rentals

36% of tenants in furnished properties in the 2nd quarter are French, which represents an increase of 3% in comparison to the 2nd quarter 2018. The terms of furnished rentals explain this craze, especially since the introduction of the ‘bail mobilité at the end of 2018: flexibility, no deposit, access to ‘ready to live in’ accommodation without additional expenses for a short time.

The figures for people from different origins are slightly down this quarter.

Growth in the Paris rental market

Much like in the 1st quarter 2019, the monthly rents per m2 in Paris have slightly increased: the monthly price per m2 in furnished rentals in Paris is at €38.50 for the 2nd quarter of 2019, which is an increase of 1.9% compared to the 2nd quarter 2018.
This is a genuine trend in the real estate market, seeing as the benchmark rent index? for the same period also increased (+1.53%).

According to Alexis Alban, Operations Director at Lodgis, “the recent return of rent control in Paris should not have an impact on the evolution of rent. We also support our landlords in this sense: 95% of them are already in compliance with the regulations”.

Student and professional mobility: the two main reasons for choosing furnished rentals

In the 2nd quarter 2019, there were 24% of students and 61% of professionals in mobility that rented furnished properties in Paris. These figures correspond to an increase of 2% for students and 5% for professionals in mobility compared to the same period in 2018.
The other reasons (relocation for work, hospitalisation, separations, etc.) are in decline and represent only 15% of tenants, a decrease of 7%.

The ‘bail mobilité’ confirms its success

The ‘bail mobilité’ coming into effect in November 2018 and being proposed by Lodgis, as soon as it was put in place, to its landlords and tenants explains this new craze for furnished rentals: a genuine facilitator of temporary housing, it responds, on the one hand, to the expectations of tenants and the growing phenomenon of professional mobility, and, on the other hand, to the expectations of landlords. Essentially, thanks to the ‘bail mobilité’, they can rent their furnished property over shorter periods while profiting from the advantages of traditional furnished rentals (flexibility, taxation, etc.), all while freeing themselves from the constraints of furnished rentals for tourists which are a lot more sanctioned and complicated to put into place nowadays.

Here at Lodgis we are proud to have believed in the ‘bail mobilité’ and to have proposed it to tenants and landlords since its introduction at the end of November 2018, explains Alexis Alban. We were immediately convinced by the need of this new type of furnished rental contract to adapt to the demand and the needs of students and professionals in mobility, the number of which is increasing in the major French cities. A good sign for Lodgis who recently opened its services in Bordeaux, Lyon and Toulouse.

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