Fantastic news for those in the rental market: one month rentals in Paris. Thanks to a new law backed by French President Emmanuel Macron, it looks like medium term rentals in the city may soon become a reality.
This could mean a valuable new stream of income for many property owners, giving them freedom to rent to tourists and professionals alike. Both are huge potential markets for property rentals in the city.
The current situation
Currently, renting a furnished apartment for a short or medium term in Paris is prohibited. Short term rentals are those that last only several days or weeks.
As outlined by the mayor’s office, only long term rentals are allowed. These are for a minimum of one year, or for nine months to students studying in the city.
This legislation is extremely restrictive, and has been for many years. It means owners who live in Paris part time, or who have empty property during the summer months, have limited options.
But it looks like change is coming. And hopefully property owners don’t have long to wait.
One month rentals in Paris expected this Fall
One of the leading economic and business magazines in France, Capital, has published a very interesting report.
It states that a new law known as the ‘loi Elan’ will permit medium term rentals in Paris, ranging from 1 to 10 months in duration. There are some restrictions, including a clause that rentals are non-renewable. For many, that won’t be a problem.
The new property law is expected to be ratified in just a few weeks’ time.
With change in the air, property investors may soon be open to these new streams of rental income. An exciting prospect for many.
Property prices on the rise
One month rentals in Paris are not the only piece of good news. Capital’s report also suggests that the opening up of the market will have a positive effect on the economy.
This is due to a strong demand for medium term rentals in the city, not just from tourists, but those working in the banking industry. It’s an area growing in Paris since the announcement of Brexit in the UK.
This influx is expected to keep property prices climbing at a steady pace. As recently reported in this blog, real estate in Paris is expected to reach 9,400€/m² this Fall. This would be a 4% increase, with the market’s solid momentum continuing for the remainder of 2018.
Your own investments and income
Here at 56Paris, we like to stay on top of the latest industry trends. For up-to-date advice about your own property investments in the city, don’t hesitate to get in touch with the team today.