Rents have increased by 1.5% between January and October 2014, two times faster than inflation.
After a moderate start year, rents charged to new tenants across France are starting to rebound in recent months.
They increased by 1.5% on average (excluding charges) between January and October, two times faster than inflation (+ 0.7%), according to a new study from the rental watchdog ‘Clamor’.
This trend contrasts with that seen earlier in the year and in 2013 (up only 0.6% over the whole year).
However, the rental market is still idling, “rental demand remains depressed by rising unemployment and uncertainty about the purchasing power,” says the study.
And whilst this year showed a return to the seasonality of the market, with a relatively traditional 55% of new leases signed between June and October alone, “this year’s event has not returned to the dynamism of the fall of 2011, for example,” according to the study.
Taking a step back, it is still clear to see that tenants are moving less and the supply of available housing is reduced from year to year (120,000 dwellings least since 2011).
The risk of a severe crisis of quantitative rental supply is increasing, especially in cities where market imbalances have already spoken.
Rents for large apartments jump
As was the case earlier this year, it is rents for large apartments, of which there are fewer on the market, that have increased the most.
Rents for five-room and over apartments jumped 3.3% between January and October. Four-bedrooms jumped 2.9% and the three-bedrooms (representing 26.2% of the rental market) rose by 1, 8%.
In contrast, rents for two-bedroom apartments (32.4% market share) rose only 1.2% and studios (22.6% market share) rose just 0.9%.
There are still significant regional disparities
Rents still shrank by 32.8% in cities of over 10,000 inhabitants (against 36.1% in 2013), in locations such as Amiens (-0.5%), Dijon (-0.1%), Limoges (-0 8%), Perpignan (-1.4%), Saint-Denis (-3.4%) and St. Stephen (-4%).
“In these cities, the rental market is down and rising rents recorded since 2006 remain below inflation,” the study notes.
“However, these cities are something of an exception, because since the beginning of the year, rents have risen faster than inflation in most cities over 100,000 inhabitants. Head Villeurbanne (+ 7.6%), Metz and Montreuil (+ 4%), Nancy (+ 3.2%), Paris (+ 3.1%), Mulhouse (+ 3%), Angers (2, 8%), Nice and Bordeaux (+ 2.6%). Followed, Clermont-Ferrand (+ 2.5%), Lille (+ 2.4%), Rennes, Reims and Boulogne-Billancourt (+ 1.8%).
These cities are followed by Lyon (+ 1.6%), Orleans (+ 1.4%), Marseille and Le Mans (+ 1.3%), Strasbourg and Tours (+ 1%), Toulouse, Aix-en- Provence and Rouen (+ 0.9%) and Montpellier and Caen (+ 0.8%).