In fact, some buyers find themselves forced to postpone their purchase plans because of the rise in interest rates. The latter therefore move onto the rental market. We also note the return of expatriates and the renewed attractiveness of Parisian life for foreigners and Ile-de-France residents who contribute to the increase in demand.

 

Consequently, the volume of rentals will be greater, despite a shortage of properties to rent due to regulations against thermal sieves. Furthermore, high-quality housing will benefit from leverage and will always rent quickly thanks to a large number of applications.

The new DPE regulations

On the rental market, a very large number of homes that have not been maintained (and are now considered thermal sieves) will need to be renovated. As a reminder, since August 24, 2022, it has been prohibited to increase the rent of housing classified F or G. The rent review can only take place if energy renovation work on the housing allows the exit from thermal sieve status, that is to say at least class E.

The attraction for renovated properties

The strong attraction for “flawless” renovated properties continues. We also notice strong competition with many applications for the same property, which can only support the market. As for tenants, we are seeing a strong return of companies and expatriates to French soil, demanding the quality of the properties they rent.

 

This means that high-quality accommodation will always rent quickly. Another notable phenomenon is the ever-increasing search for exterior spaces or additional rooms that can be used as an office, a consequence of the democratization of teleworking.

The success of furnished rental

For greater flexibility, landlords are increasingly turning to furnished rentals and Civil Code leases following the new DPE regulations and the cap on rents in Paris.

Furnished accommodation is more favored in the first half of 2023, given the tax interest it generates. It is also a solution favored by companies for housing their employees. Last year, 43% of rentals were dedicated to businesses, listed companies and mobility services of large groups with which we maintain a privileged partnership for the housing of their expatriate employees.

 

This context is favorable to the increase in Civil Code leases, allowing owners to find real flexibility in the conditions linked to contracts. Their share has increased again by 49% during 2022.

 

Owners are also increasingly inclined to entrust Junot with the management of their properties, a formula that concerns more than half of the properties that have entered the portfolio in recent months.

The Parisian rental market is therefore strongly destined to experience tensions in 2023, but probably remains resilient in the high-end segment.

 

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