The Covid-19 will definitely have turned the Parisian market upside down.
As transactions show slight declines in prices, it is the turn of rents to point down.
According to figures from SeLoger, which
Le Parisien
reveals, some districts of the capital show a negative trend over one year in rents when the overall increase in rents slows.
Overall, in the capital, average rents are also falling.
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The 9th arrondissement (37.60 euros per square meter) shows, on the furnished, a decrease of 2.70% over one year.
The strongest of all the boroughs!
A decline which may seem minimal but which corresponds to a reduction in rent of around forty euros for a 40 square meter apartment.
On the unfurnished, it is the 8th arrondissement (34.20 euros per m2) which shows the most significant decrease of the whole capital with amounts decreasing by 3.2% over one year.
Of the twenty historic districts, nine show a drop in rent per square meter, including six with a drop of 1% or more on furnished rentals.
On the empty rental, ten show a drop in rents, five of which are greater than 1%!
On a global scale in Paris, however, m2 continues to climb - although it has slowed down in recent months: + 1.2% for furnished apartments, + 0.1% for vacancies, etc.
SeLoger even notes that the average rent (linked to the average rental area and therefore to the offer on the platform) has fallen by 0.6% for furnished apartments (€ 1,822) and 1% for empty rentals (1,638 €).
In the fourth arrondissement of the capital, these average rents fell by 7.10% for furnished apartments and 9.20% for empty spaces… “This is explained by the fact that we are dealing - in the current park offered for rent - to more small properties offering slightly lower rents, ”notes Séverine Amate, spokesperson for the SeLoger group.
Less demand and more offers
At Lodgis, leader in furnished rentals in Paris, rents have been lowered for several months.
"From the first confinement, our rents had to be reduced by around 5%," explains Alexis Alban, deputy general manager.
Smoothed over the whole year, Lodgis estimates the overall drop in rents at 2.5% for its part.
“The owner who finds himself with a vacant property must make his apartment more competitive to find a tenant: it involves work, additional equipment or lower rents.
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The drop in rents in the capital is the result of two logics: less demand and an increase in supply.
This has exploded in the capital: according to SeLoger, at the beginning of January, the number of online ads on the platform more than doubled compared to a year ago (+ 158% for empty housing, + 183% for the furniture).
In the 4th arrondissement, the number of advertisements increased by 371% for furnished apartments and 353% for empty housing!
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The successive confinements that have stopped projects, universities and schools that remain at bay and foreign students who are not there have got the better of rents.
"The projects are now progressing month by month, depending on the evolution of the health situation, when they were planned upstream between three and four months before", explains Alexis Alban, who describes the current situation as a "roller coaster" punctuated by through confinements, movement restrictions and border closures and reopening.
Opposite, the offer has grown with apartments that find takers less quickly - according to SeLoger, average rental times have increased by 13% on furnished rentals in the capital to reach twenty days - and the massive return to the traditional market, in the months following the first lockdown until September, Airbnb type seasonal rentals deserted by tourists.
