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Housing Rents continue to fall

Housing Rents in France fall
In 2015, rents have declined in three major cities in four – DURAND FLORENCE / SIPA

HOUSING The Clameur investigation unveiled Tuesday tip unprecedented decline in rents on three major cities on four since the beginning of the year …

The rental market is rebounding in France . “Mobility is now at 28.2%, slightly above its long term average.  And this is a comparable to that usually noted early in the year before the slump of the economy in the years 2008-2009 “,  stated by the Clameur Association – l’association Clameur Connaître les Loyers et Analyser les Marchés sur les Espaces Urbains et Ruraux, in their monthly report for May.

Lower rents in 3/4 regions

Normally in spring, the rents start to rise, normally  because of the growing number of relocations.  But this year, rents charged to new tenants have, since January, already fell 1.5%,according to this assessment. A fall of a new level since 1998 over such a period.

Since the beginning of 2015, it has been found that 17 of the 22 French regions have seen their rents decreased in more than half of the municipalities with 10,000 inhabitants (57.2% against 34.9% in 2014).  In the larger cities of over 100,000 inhabitants, it is even more obvious: rents were down in nearly 75% of them.

Marseille down sharply, Brest up sharply

If the most impressive declines were recorded in Marseille (-7%), Saint-Denis (-5.2%) and Caen (-3.5%), many other cities are affected: Mulhouse, Besançon, Rouen, Metz, Rennes, Nice, Montpellier … but also Paris (-2%), Lyon (-2.8%) and Lille (-2.3%).

Among the cities that do not follow the trend, Brest (+ 5.1%), Tours (+ 2.5%), Aix-en-Provence (+ 2.3%) and Clermont Ferrand (+ 1.4% ) are those places where rents have increased most strongly.

The studios and 2-piece Accommodation sharpest decline

The rental decline does not concern all types of housing: small areas, more numerous on the market, posted the largest declines, with a decline of -2.5% for studios and -1.9% for the 2 pieces against a decline limited to -0.8% for 3 pieces.

Conversely, the 4 pieces  rents increased by 0.8% and those of 5 rooms and more than 0.3%.  But the pace is much slower, as in the same period last year, the increase was more than 3%.

Negative side effects

With the lower occupancy and lower rental income, landlords are less willing to invest in the renovation of their properties.  Since January, only 12.9% of housing benefited from major improvements and maintenance prior to being rented, against 16.6% in May 2014 and 25.7% in May 2013.

 

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