Paris Relocation: Rental Market Update
Posted by: Isabelle Grimbert, Director, International Assignment Services, France
Cartus’ latest Paris Market Watch looks at the city’s current rental market, including the types of properties available and the neighbourhoods that are popular with international assignees. We also discuss the ALUR (Accès au Logement et un Urbanisme Rénové) Law and the impact it has had on the local rental market during the first year of implementation.
The Impact of the ALUR Law on Relocation
In August of last year, as part of the ALUR Law, rent controls were introduced across Paris. The controls impact tenants using a personal lease, but do not apply to those using a corporate lease. Rental controls limit rates to 20% above and 30% below a neighbourhood’s average, and form part of the French government’s nationwide housing reforms. One year on and the Paris rental market has become more accessible to tenants, although some estate agents and landlords are now giving preference to individuals using a corporate lease.
The rent controls have also begun to discourage buy-to-let investors, with some selling their rental properties because they no longer deem them to be a good investment. As a result, there has been a dip in the number of rental properties available in Paris, which is making it a little challenging for international assignees. As the market is quite tight at the moment, when an assignee does find a property they like, they’ll need to act quickly to secure it.
Despite these trends, the rent controls have been popular amongst tenants, as it ensures more affordable housing. In July 2016, the government announced that the law is working well and plan to introduce rent controls to other parts of the country in 2018, although no exact timescale has been given.