Latest French Rental Figures Mixed Picture


In contrast with the current trends in Ireland, French rental prices are getting cheaper in some cities

Since January, rents have increased throughout France by 0.7% on average, but they’ve dropped in 37.5% of towns with over 10,000 inhabitants and in 20% of the largest towns.

The rent prices that had increased by 1.1% at the start of the year are again dominating the overall trend. Between January and the end of August, they progressed by 0,7% on average, which is in line with inflation figures. In 2013, rents increased by 0.6% on average when inflation was 0.9%.

The slight increase that has registered since the start of the year includes a reduction in rental rates for small apartments (down 0.6% for studios and one-bedroom flats) and a small increase in rental prices for 2-room apartments (+0.5%). These two types of residence represent 55% of all property up for rent in France. The larger household categories continued to rise significantly, with a rise of 1.5% for three-room dwellings, 2.6% for four-room property and 2.9% for the five-room variety.

In 37.5% of towns of over 10,000 people, rents were down, however and in the larger towns of 146,000 inhabitants or more (i.e. the size of a large city in Irish terms), rents were down in 20% of cases, most notably in Saint-Étienne (-4.7%), Dijon (-0.8%), Montpellier (-0.4%) and Reims (-0.3%). In almost half of the other cities (45%), the rise in rental values was less than the rate of inflation: Marseille (+0.6%), Bordeaux (+0.5%), Paris (+0.4%) and Toulouse was stable with no increase.

In just over a third of the other towns, however, there was a marked increase in rental values. Heading the list of higher demand was Angers (+3%), followed by Lille (+2.6%), Le Havre (+1.9%), Villeurbanne (+1.6%), Le Mans (+0.9%), Lyon (+0.8%) and Nice (+0.8%).

One of the main reasons for the current trends is the reduction in the number of transactions. The economic crisis continues in France and many households are still putting off moving house.

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