The count continues to rise. Rent growth in the Paris region increased in 2023, but remained lower inflation according to the Paris Metropolitan Area Rent Observatory (Olap). On average, rents for unfurnished properties in the private rental stock increased by 2.9% in 2023, after an increase of 2.4% in 2022 and 0.8% in 2021.
The evolution of rents has registered “a clear recovery in the last two years”, underline the authors of the study. This increase, however, remains lower than that of the consumer price index (+3.6%) and that of the the reference rent index (IRL)to 3.4% in 2023, the observatory specifies.
Average rent of over 1,000 euros for 53 m2
New tenants were hit the hardest, with rents rising by 3.4% across the Paris region and by +4.2% in Paris, due to moves. However, this is a much more moderate increase than the +4.5% recorded the previous year. Tenants who remain in their accommodation, for their part, suffered an average revaluation of 2.9% for current contracts and 2.3% for expiring contracts.
The average rent excluding expenses was 1,043 euros in 2023 for a 53 m2 accommodation2or 19.70 euros per square meter, compared to 998 in 2022. In intramural Paris, which increased by 3.1%, it was 1,276 euros for 50 m2 on average, that is, 25.50 euros per square meter.
The average rent increased by 2.9% in the inner suburbs (Hauts-de-Seine, Seine-Saint-Denis and Val-de-Marne), to 965 euros for an average surface area of ​​52 m2, or 18.50 euros per square meter. In the outer suburbs (Seine-et-Marne, Yvelines, Essonne, Val-d’Oise), the increase is 2.4% to 873 euros for an average of 58 m2, or 15.10 euros per square meter.
Rent control stagnates in Paris
Rents are subject to control in Paris and 18 municipalities in Seine-Saint-Denis, which sets a maximum rent amount and limits rent increases to the renewal of leases. For 2024, Olap sees several signs, such as the region’s diminished attractiveness for young workers and slowing inflation, that point in the direction of a reduction in demand and therefore a moderation or even a reduction in re-rental fees, but also, where applicable, those of stable tenants.
However, according to study of the Abbé Pierre Foundation. Between August 2023 and August 2024, 30% of rental properties exceeded the maximum rent limits, or five points less than in 2021, but two points more than last year. “This system is progressing in the region, but is stagnating in Paris,” the foundation points out, wondering whether the Olympic Games could “encourage more landlords to attempt rent increases above the standard.”
Furthermore, several elements will contribute to reducing the housing supply in the coming years, including the progressive ban on renting the most energy-intensive accommodation And the low volume of new construction.