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Paris: the furnished apartment boom is shaking up the rental market like never before

2021-03-08T05:10:31.033Z

With the flight of tourists, owners of furnished flats can no longer bet on seasonal rentals and are returning to the traditional circuit.



It is not only souvenir vendors who mourn the absence of tourists in the capital.

The owners of furnished rentals too.

In recent years, thanks to the incredible boom in seasonal rentals, many have chosen this device to make their investments profitable.

And in Paris, there is something to earn a lot of money.

But the Covid has been there, causing the flight of tourists and thus leaving the owners very embarrassed.

Result: all these properties are now used for traditional rental.

And that redistributes the cards in the market.

Thus, in Paris, the number of furnished apartments has increased in one year by 185%, according to a study by SeLoger.

Better, the capital now has more than empty rentals, or 52.5% against 47.5%.

In France, it is placed just behind Bordeaux as the most endowed city.

Same phenomenon in Saint-Denis and Boulogne

But it is not the only one, in the Paris region, to experience a boom in furnished accommodation.

Saint-Denis (Seine-Saint-Denis), for its part, saw an increase of 250% in advertisements and Boulogne-Billancourt (Hauts-de-Seine), at + 176%.

“Rather than leaving vacant housing and waiting for hypothetical customers, owners prefer to secure an income with traditional rental, analyzes Florent Guiocheau, scientific director at SeLoger.

But that's not such a bad deal because these homes are more expensive than an empty rental, roughly that's an extra thirteenth month.

“Not to mention the tax advantages and shorter commitment periods, one year against three for empty rentals.

Generally, we find this type of property near tourist sites and in large cities, which explains the explosion of these properties in Saint-Denis and Boulogne, which are close to Paris and have more than 100,000 inhabitants.

The effect of competition lowers rents

In addition, the furnished apartment also pleases because the pandemic has installed new behaviors in real estate.

The complicated economic situation prompted many future owners to take precautions.

"With the successive confinements, people wanted to move for greater, even further thanks to the rise of teleworking, continues the expert.

But in the absence of certainty on the evolution of the crisis, many prefer to start leasing before buying.

"

The massive arrival of furnished apartments also has an influence on prices.

With such competition, the balance of power is reversed.

"We have never had so many furnished apartments to rent," acknowledges Nicolas Goyet, co-founder of Flatlooker, a rental management site.

And when stocks accumulate, the reflex of landlords is often to temporarily lower the rent.

This is how SeLoger noted a 1.5% drop in rents in Paris.

It is little but quite symptomatic of what is happening in the capital.

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This is the case with Paolo

(the first name has been changed)

.

Bad luck, he signed his deed of purchase in March 2020, a few days before confinement, for a 21 square meter apartment in Montmartre (18th century) that he wanted to put on seasonal rental.

"I was counting on renting it 90 euros per night and I had to lower it last summer to 50 euros, he blurted out.

In mid-August, I quickly realized that I would no longer find tourists, so I quickly opted for a furnished rental.

And there again, I chose the lower range of the rent is 1050 euros with the charges whereas, given its new condition and its location, I could have gone up to 1200. But with the competition, I did not want to take the risk. to lose a tenant.

"

Finding a tenant takes longer than before

Because it is not so easy to find a candidate at the moment.

In Paris, depending on the district in which the apartment is located, the times to find a tenant can vary a lot, according to a study by SeLoger.

The two extremes are the 1st (33 days) and the 20th (14 days).

Obviously, the massive return of furnished apartments on the traditional rental market does not help matters.

On average, it takes 19 days to rent an empty property in the capital, an increase of 4.1% in one year.

"This is only an average because, depending on the qualities of the property, some of them can sometimes be rented in a few days", tempers Séverine Amate, spokesperson for SeLoger.

The situation is all the same paradoxical because, at the national level, the deadlines clearly tend to be absorbed.

Thus, they fell by 37% between January 2020 and January 2021, going to 30 days.

Among the explanations for these longer times in the capital, let us cite the disappearance of students, long-term interns or expatriates.

“And then Paris has been losing inhabitants for several years, this has an impact,” adds Florent Guiocheau, at SeLoger.

Some differences are simply explained.

Thus, the difference between the 1st and the 20th is justified by the fact that the latter is larger and the prices are cheaper.

The return of furnished accommodation also has consequences.

Thus, it now takes nearly 24 days to rent one in Paris, an increase of 19.6% in one year.

“We have never seen such an upheaval in the rental market,” says the expert.

But it is obvious that this massive arrival causes strong competition and therefore an extension of rental periods.

"

Source: leparis

All news articles on 2021-03-08

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