After a first trimester synonymous with a nuanced recovery for traditional furnished rentals, Lodgis, the leader in Paris’ furnished rental market, unveils its barometer for the second trimester of 2021. If the start of the quarter was more difficult with mobility still in its infancy, demand is now showing strong growth for the start of the September: in June 2021, Lodgis recorded an increase of 43% in rental requests compared to June 2020 and +18% compared to June 2019. This recovery observed in June, a strategic month before the summer period, is synonymous with high rental turnover and suggests an active third trimester.
Among the highlights in comparison with the first trimester of 2021:
Alexis Alban’s Analysis (Lodgis’ Deputy General Director)
“The second trimester confirms the nuanced recovery that has been taking place since the start of the year: after the start of the trimester was impacted by the third confinement, the month of June saw requests for the start of the school year increase again.
Mobility is still very difficult and the busy season has started, but with a delay: professional mobility projects have been delayed for the first part of the term, students have been slow to come back and tourists are haven’t returned yet. A “catching-up effect” has been evident since June and will continue throughout the summer, with numerous requests from students and professionals for the start of the new school year in September, which should mark the return of students and a significant demand for furnished rentals. If, in April, we saw early departures and cancellations related to the health crisis, we have rented out many of the vacant properties since May.
The success of the mobility lease is supported by a new phenomenon: more and more companies are using it to house their employees.
As for the origins of the potential tenants, the trend observed in the first trimester is still relevant: French tenants are still numerous with increasing demand (61.7% of tenants are French, i.e. +3.2% compared to last year), then followed by European tenants (18.8%, i.e. an increase of 1.3% compared to the same period in 2020).
While it is still too early to be sure of a return to normal, we are impatiently awaiting the summer period and the start of the new school year to see the confirmation of the recovery which has been taking shape since the beginning of June for the traditional furnished rental market.”
Rental prices per square meter are up 2.4% compared to the first trimester for the first 8 arrondissements of Paris.
The increase in rents is generalized for all Parisian arrondissements: Lodgis has observed an increase of 1.3% compared to the first trimester of 2021.
Studios are still the most rented space: 48.6% with a slight increase of 0.9%.
The trend seen in the second trimester of 2021 is the same as that from the first trimester of 2021 the majority of tenants are French (61.7% versus 58.5% during the same period last year).
European tenants have increased in the past year: 18.8% (17.5% during the same period last year).
“The highlight this trimester is the resumption of the demand for and the signing of leases with foreign tenants since the beginning of June,” explains Alexis Alban.
If professional mobility represents 55.8% of rentals this trimester, it is still a slight decrease compared to the second trimester of 2020: - 0.9%.
Student mobility has stayed at a similar level with a slight increase of 0.1%: 27.1% during the second trimester versus 27% during the same period 2020.
The absence of tourists is compensated by rentals for various other reasons (need for accommodation during work in a main residence, family reasons, etc.).
“These figures reflect the mobility impacted by the health crisis,” explains Alexis Alban. “It is possible that we will have to wait until the next school year to see student mobility return to a normal level and professional mobility projects resume, however, we can note that 27% of students at the end of the school year still represent a significant volume (in T2 2019, only 24% of our tenants were students). This decrease in student mobility is therefore moderate: the growing volume of French students, the confinement and changes to the school calendar linked to the crisis may have encouraged students to postpone their mobility plans to the end of the term, without giving them up completely."
The increase initiated in the first trimester of 2021 has been confirmed for principal residence leases: +11.2%. For the second trimester, principal residential leases represent 41.3% of leases signed. “This is explained by the extension of the rental period, which averages 221 nights”, explains Alexis Alban
The mobility lease is also continuing its momentum: +6.3% and it represents 27.7% of the leases signed this trimester.
“We are seeing that more and more companies are using the mobility lease to house their employees,” explains Alexis Alban. “And we’re glad: at Lodgis, we have always believed in this lease and offered it from the outset. We see in these figures an opportunity to find other solutions, perhaps by creating a hybrid company lease, both flexible and secure, to regulate professional rentals. A distinction must be made between tourist rentals and professional rentals: this is an installation as a home for an employee in a professional setting. The stake is capital for companies: the accommodation of an employee is important to the attractiveness and the dynamics of said company. We must be able to provide a solution adapted to these needs. Real estate agencies would be the right players to provide them with this solution and tailor-made support.”
Similar articles:
Are you the owner of a furnished rental property? Benefit from Lodgis' exptertise as a specialist in furnished rentals and rental management... starting at 3.9% including taxes!
Do you want to list your property on our website? Post your listing right now, it is FREE and NON-EXCLUSIVE!
List your propertyDo you want to learn more about our rental offers and management starting at 3.9% including taxes? Our expert agents are at your disposal!
Contact us +33 1 70 39 11 07OXYGEN Agency
Emmanuelle Catheline & Aude Jasaron
T :+33 6 79 06 36 11
@ : send an mail