Parisian rental property: towards a new balance in 2025
After a drop of more than 54.8% in supply in Paris over 3 years, the curve is finally reversing. Supply has stopped declining and is beginning a gradual return. At Junot, the volume of rental properties increased by +24% in the first 5 months of the year compared to 2024 (350 rentals and 700 properties under management per year). The number of managed properties is on the rise, with €750 million in assets under management, and the move upmarket in the rental market is confirmed: 60% of 3-room and larger properties, and 75% of properties rented furnished.
Long-term rentals are experiencing a real resurgence in activity, driven by the effects of new energy and tax regulations, which are pushing many owners to professionalize their property management.
• 3 times more new properties for long-term rentals vs. 2024.
• 5 times more rentals in the first 5 months of the year vs. 2024.
The decline and then stabilization of interest rates has also enabled a greater number of tenants to become owners and investors to reposition themselves.
This trend will certainly intensify in the coming months despite legal, tax, and energy renovation constraints.
While the overall market is easing, certain Parisian neighborhoods remain under pressure, particularly those combining centrality, quality of life, and energy performance.
Paris, its Eiffel Tower, its quality of life, and its French charm continue to attract foreigners, particularly Americans, looking for a place to live. land or large luxury companies to house their managers and employees.
Please note that the new 2025 Finance Law modifies certain tax provisions applicable to rental investments, whether unfurnished or furnished.
These changes may affect the management and profitability of the properties concerned. Investor owners should anticipate higher taxes, particularly when reselling furnished properties. It is advisable to review wealth management strategies, particularly with regard to ownership periods, the choice between unfurnished or furnished rentals, and membership in a CGA (General Rental Agreement). The relaunch of the Loc'Avantages scheme, however, offers an opportunity for those wishing to rent at affordable prices.
Our Rental/Rental Management department presents the main measures, their impact, and shares its recommendations.
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