Barometers for furnished rentals in Paris / 3rd quarter 2016

The academic year begins with a slight fall in rents

At -0.3% for the third quarter of 2016 compared with the same period last year, the cost of furnished rentals in Paris is slightly down. This trend is even more pronounced in the central arrondissements, where rents have fallen -1.7% since 2015. Generally speaking, this comparative decline can be attributed to current safety concerns, which are especially tense in the capital. This phenomenon is hitting the market: the fall in visitor numbers is upsetting the balance of supply and demand, thereby pushing a trend of falling prices.

Europeans represent 60% of furnished rental tenants in Paris

The European Union and France remain at the top of the rankings for the countries of origin of furnished rental tenants in Paris, making up 33.5% and 27% respectively. On the other hand, the proportion of foreign tenants from other continents, such as Asia (-2%) or South America (-1%), is falling within the sample range. Secury concerns can also, in part, explain this fall in foreign clientele.

Students are flooding the market

The months of July, August and September were the ultimate student quarter. Ahead of the autumn term, students go out looking for a pied-à-terre in Paris. Student demand now represents over half of reasons for staying (50.9%).

Travelling professionals are also playing a hand as 34.5% planned visits to Paris during the third quarter of 2016. For short briefs, training schemes or assignments lasting several months, companies often opt for furnished rentals, since they're more comfortable for their employees and less expensive than hotels. According to Mastercard's most recent Global Destinations Cities Index 2016, Paris is the number one business desitnation in Europe in terms of percentage (almost 30% of visits).

Read more:

• Barometers for furnished rentals in Paris / 2nd quarter 2016: Stable rents are confirmed
• Paris furnished rentals survey / Q1 2016: Rents start the year stable
• Paris furnished rentals survey 2015: Rents are stable and student numbers continue to rise
• Lodgis wins a 2015 FNAIM VIP Trophy!
• Property / Autumn 2015: an update from Lodgis on the summer's major reforms