Summary
A tense rental market in Paris
Empty rental vs furnished rental: two different markets
Evolution of tenants' expectations
Real estate prices in Paris: towards stabilization
Where to invest in Paris and nearby suburbs?
Regulations: an increasing impact on the Parisian market
Conclusion: A demanding market but rich in opportunities
A tense rental market in Paris
Since mid-2023, the rental market in Paris has been marked by strong tension, particularly over small empty units.
Two main factors explain this situation:
Rising demand: the sharp rise in interest rates has pushed many potential buyers towards renting.
Declining supply: rent controls, rising property taxes, and energy renovation obligations are slowing down some landlords, thus reducing the number of available properties.
As a result, the tension is highest for small units rented empty as a primary residence, a bit less strong in the furnished market, particularly for larger apartments.
Empty rental vs furnished rental: two different markets
The empty rental market
A true scarcity market for small units.
Strong demand, especially for well-located and well-maintained apartments.
The furnished rental market
A gradual oversupply, especially for studios and small furnished apartments.
Landlords need to stand out by offering quality properties to attract tenants.
Rents for empty and furnished units tend to converge, due to the abundance of furnished offerings.
👉 Many landlords are turning to Civil Code leases (to companies, expatriates, vacation homes), but this market remains niche and requires properties in excellent condition, ideally located.
Evolution of tenants' expectations
Field experience reveals clear trends from the tenant side:
Increased demand for the general condition of the property.
Kitchens and bathrooms must be impeccable: their condition can make the difference.
Equipped kitchen is now essential to attract expatriates in empty rentals.
Contemporary furniture and in perfect condition for furnished properties (recovered furniture is strongly discouraged).
Growing sensitivity to energy performance (favorable DPE, double glazing).
Collective heating: a real asset to attract tenants.
Real estate prices in Paris: towards stabilization
A marked decrease since 2022
After years of increases (+5 to +8% between 2016 and 2020), Paris has experienced a historic price decline of about -8% since 2022.
The rise in interest rates (from 1% to over 4% in two years) has dampened households' purchasing power.
A still high market
As of the end of December 2024, the average price in Paris was €9,480/m².
Significant disparities exist among districts:
€13,400/m² in the 7th district;
€7,630/m² in the 19th.
In 2025, a stabilization of prices is expected.
Where to invest in Paris and nearby suburbs?
Within central Paris
Minimum budget: €250,000 for purchase and associated fees.
Attractive areas for rental investment:
18th, 19th, 20th districts (Montmartre, Villette, Buttes-Chaumont): strong rental demand.
9th district (near Opéra Garnier);
12th and 13th districts, currently developing.
👉 For more information, consult our guide to the Parisian districts.
In nearby suburbs
The departments of 92 (Hauts-de-Seine), 93 (Seine-Saint-Denis) and 94 (Val-de-Marne) are particularly dynamic.
Less affected by the price drop: -0.8% to -1.3% in one year.
Investing in the suburbs can be a profitable alternative.
Regulations: an increasing impact on the Parisian market
Tourist rentals
The city of Paris has tightened the rules to limit tourist rentals:
A primary residence can be rented for a maximum of 90 days per year.
Owners of secondary residences must obtain usage change authorization and compensate for the loss of living space.
Municipal policy
The 2025 city budget focuses on:
Ecological transition;
Land use development (over 50% of expenditures);
Development of soft mobility.
Conclusion: A demanding market but rich in opportunities
The rental market in Paris in 2024-2025 is more selective than ever.
Facing a limited supply in empty rentals and an overabundance of furnished properties, only well-maintained, well-located, and perfectly equipped apartments will find takers quickly.
If you have a property with quality features, you can target a premium clientele (companies, expatriates, mobile executives), ready to pay more, regardless of the type, size, or location of the property.
The Civil Code lease then represents a strategic opportunity to maximize profitability while maintaining rental flexibility.
What if you made your rental management project a serene success?
From finding the tenant to the complete management of your property, we offer you high-end support designed for your utmost satisfaction.
by BAUVAUT - January 10, 2025