The desertion of tourists and the flight of students caused an unprecedented drop in studio rents in Paris in the first quarter. Homeowners must adapt to declining demand.
The owners of studios in Paris are not celebrating. The health crisis and the confinement scare away students and tourists: the result is a drop in rental prices for these small homes. A study by Locservice, which connects individuals in real estate, indicates that rents fell 2% in the first quarter, unprecedented according to the service. The average rent price is 881 euros in the whole of Paris. As for real estate pressure, it is declining sharply in all districts, in particular tourist areas in the heart of the capital.
Locservice reports that on average, a studio owner only receives two requests for his studio, compared to three at the start of the year. A 30% drop in demand which could continue in the weeks and months to come if the health situation continues. The government would have in mind to tighten the confinement already in place in the Paris region … If the rents for these goods are down, it is the consequence of two phenomena: the students preferred to leave Paris and go to study at home with their parents or elsewhere. Universities have started virtual studies, so why stay cloistered in a small studio in Paris where there is no activity left to do.
Tourists are no longer there
The other reason is the desertion of tourists. Short-term Airbnb rentals are rare and studio owners prefer to rent or sell their property, even if it means lowering prices. According to Locservice, it is indeed the increase in supply that makes it possible to lower prices, not the rent framework put in place by the Town Hall a year and a half ago. A device that makes ” run away from investors “, According to the service.