The increase in rents in the Paris region has increased in 2023, while remaining lower than inflation, according to the final calculations of the Paris metropolitan area rent observatory (Olap) published on Thursday. Rents for unfurnished properties in the private rental sector have increased by an average of 2.9% in 2023, after an increase of 2.4% in 2022 and 0.8% in 2021. The evolution of rents is in “clear recovery over the past two years”the authors of the study emphasize.
This increase, however, remains lower than that of the consumer price index (+3.6%) and that of the rental reference index (IRL), at 3.4% in 2023, the observatory specifies. New tenants were the most affected, with rents revalued by 3.4% across the Paris region, and by +4.2% in Paris, for moves. However, this increase is much more moderate than that recorded the previous year, at +4.5%. Tenants who remain in their homes, for their part, have undergone an average revaluation of 2.9% for current leases and 2.3% for lease expiries.
The average rent excluding charges was 1,043 euros in 2023 for a 53m² dwelling, or 19.7 euros per square meter, compared to 998 euros in 2022. In Paris intra-muros, which saw an increase of 3.1%, it was 1,276 euros for 50 m² on average, or 25.5 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, at 18.5 euros per square meter. In the outer suburbs (Seine-et-Marne, Yvelines, Essonne, Val-d’Oise), the increase was 2.4% to 873 euros for 58 m² on average, or 15.1 euros per square meter.
Rents are subject to a framework in Paris and in 18 municipalities of Seine-Saint-Denis which sets a maximum amount for rentals and limits rent increases when renewing leases. For 2024, Olap sees several signs, such as the region’s reduced attractiveness for young workers and the slowdown in inflation, going “in the sense of a reduction in demand and therefore a moderation or even a reduction in re-letting rents, but also where appropriate that of stable tenants.” However, several factors will contribute to reducing the supply of housing in the coming years, including the gradual ban on renting out the most energy-intensive housing and the low volume of new construction.
