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Everything you need to know about the reintroduction of rent caps in Paris

As of July 1st, the reintroduction of rent caps has taken effect in an attempt to curb the increased cost of living in the capital.


As in other major European cities, real estate prices in Paris are on the up and up.  It is estimated that the price of rent in Paris has increased by more than 50% over the last 15 years.  Experts link the increase to historically low interest rates, positive economic growth, and vacation rental services like Airbnb.

Although the French Justice Department repealed previous mesures establishing rent caps in the capital under la loi Alur in 2017, Anne Hidalgo has come back with a new plan that should aid middle class families.  According to Ian Brossat, Deputy Mayor in charge of housing, under the new laws, apartments cannot be rented at more than 20% above an established referential price, which differs from neighborhood to neighborhood.  This new setup applies to both new leases and renewal leases signed from July 1st onward, and affects all property types in the capital, including both furnished and unfurnished spaces.

To explore these price levels, check out the interactive map.

Different laws aiming to crack down on skyrocketing rent prices, which have forced more and more lower and middle-class families out of city centers, have been proposed in many capital cities throughout Europe and the United States.  While some are targeting Airbnb by limiting rental time, others like Berlin and New York are establishing or widening preexisting rent control measures.  Rent in the burgeoning German capital, for example, will be frozen for five years starting in 2020 as part of the government’s latest attempt to stem spiraling gentrification.

Some real estate experts have debated the latest Parisian framework, stating that the large disparity between properties and neighborhoods throughout the capital would make it too difficult to establish a reference price for a given area.






Source: What you need to know about new rent controls in Paris

Cover photo: CVB [CC BY-SA 4.0]

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