Paris Relocation: Rental Market Update
Our latest Paris Market Watch discusses the city’s current rental market trends, outlining average rates, types of properties available, and popular expatriate neighbourhoods that may impact future relocations for international assignees. We also take a look at the ALUR Law—a piece of legislation that has been introduced in Paris and is impacting the city’s current rental market.
The ALUR Law was introduced in Paris in two parts:
- Restricting Agency Fees. From 24 March 2014, estate agents were restricted in the amount that they could charge tenants to set up a lease. The maximum charge is €12 per square meter and €3 per square meter for check-in fees.
- Rental Caps. Then, on 1 August 2015, rental controls were implemented; these limit rents in Paris to 20% above and 30% below a neighbourhood's average and are based on apartment size, year of construction, property type, and location.
Relocation Impact: What You Need to Know
Part of the French government’s housing reforms across France, the ALUR Law impacts all residential rental properties in Paris that have a personal lease, as opposed to a corporate lease. The regulations were introduced in Paris initially, and are expected to be rolled out in Lyon, Bordeaux, Marseille, Lille and Grenoble, too, with other large cities to follow. (However, no timescale has been provided for this.)
Approximately 80,000 new rental leases are signed in Paris every year, and around one in five are expected to be subject to rental capping. Of these properties, one-third will see rents decrease by less than €50 per month, another third by €50 to €100, and the rest by more than €100. (Observatoire des Loyers de l'Agglomeration Parisienne [OLAP])
For some, the ALUR Law has made the French rental market more accessible, and the majority of the French public are in favour of the restrictions. However, some estate agents and landlords are now giving preference to tenants on a corporate lease. The supply of rental stock has also dipped because homeowners are choosing to sell their home, as rental caps no longer make renting an attractive investment.
Read our Paris Market Watch for a detailed review on the city’s rental market and what it means to your relocation program, and view our Resource Page for additional information on moving to other locations in the EMEA region.