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Rental prices drop all over France in first half of 2015, Paris escapes downward trend
A study has found that most French cities have suffered a price decline in the rental market. The capital is an exception, with discrepancies noted according to property size.
Trends observed in 2014 have intensified. In the first half of 2015 rents all over France fell by 1.7% on average, based on a study by real estate agent Century 21 which took into account over 45,000 rental properties.
The economic crisis still weighs heavily on the rental market and the downward trend observed in 2014 continues against a backdrop of decline in rental demand and impoverishment of new renters: most tenants defer a possible move preferring to stay where they are and younger generations suffering high unemployment remain in the family home for longer.
Rents have fallen in Bordeaux and Lyon, with the latter experiencing a respective drop of 4.1% and 7% for two-beds and four-beds. Rents are also decreasing in most major cities, apart from Strasbourg, where they have stabilized and Montpellier, the only large city other than the capital to display a clear upwards trend. There, 2-beds have increased from an average of 513 to 520€ per month.
In Ile-de-France rents have stagnated, except for Paris where 2-beds and 3-beds saw their average rents increase by 2% and 6% respectively in the first half of 2015. Average rental price for studios and four-bedroom apartments remain virtually unchanged with studio rents increasing from 689 to 691€ between 2014 and the first half of 2015 and 4-beds rising from 1887 to 1901€.
The rent caps that came into effect on August 1st in the capital will almost certainly serve to slow the overall ascent of Parisian rental prices.
Photo: turkeychik Flickr