Seasonal rental regulation, Brexit, digitalisation of the real estate sector, tenant expectations, owner behaviour. Our director of the JUNOT Location/Gestion agency, Sébastien Bouvron, answers our questions in order to establish an inventory of trends in the Parisian rental real estate market.
Hello Sebastien, before starting this interview can you introduce yourself in a few words?
Specialized in apartment rental and management since 2002, Junot gave me the opportunity to take over the management of the rental management department in 2010. I have always made it a point of honour to develop this activity while respecting Junot's values, which I also share: Respect for customers, rigour and benevolence. Our passion for the profession and our dedication allow us to maintain a loyal clientele while developing our business, without any unpaid bills.
Trends in the rental market and changes in rental prices
As far as rents in Paris are concerned, we tend to think that they are constantly increasing, but what is the reality?
S.B : The end of the rent control system has led to price increases in areas where there is tension over newly leased properties, particularly in Paris. On the other hand, properties previously rented cannot be increased more than the INSEE increases, which are practically nil (DUFLOT law), unless they are to be rented out for more than one year for renovation work.
Freezing these rents has disastrous consequences on the maintenance of apartments, which is always necessary between two rentals, and which owners have little interest in achieving.
In addition, we are now certain that rent control for newly marketed properties will be reinstated in 2019 (ELAN LAW). We do not yet know the details of these ceilings, but we still hope that they will be more representative of the multiple characteristics such as the location and services of the properties offered for rent. (for example: LA LOI ALUR fixed the ceilings of the properties located on Boulevard Barbès and those on Avenue Junot at the same level).
The rise in Parisian rents is therefore a proven fact. Does this affect demand?
S.B : New properties put up for rent represent only a small part of the rental market. The average price increase is low. But demand is still higher than supply and perfectly renovated and maintained properties always find buyers at high prices.