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For the first time in ten years rents have been lowering
Since the year began, rents have declined in more than one city in two against one in four in 2008 according to Clamor’s Rents Observatory/Monitoring study.
After more than ten consecutive years of ascension, rents have fallen by 0.8% since the beginning of the year according to Clamor’s Rents Observatory/Monitering study published last month. Rents were up by 2.1% in 2008 and 2.7% in 2007; last track of a slippage was back in 1998. In fact, according to Michael Mouillart author of the study, "between 1998 and today, rents have increased over 41% roughly matching household incomes according to INSEE figures (French National Institute of Statistics and Economic Studies). Throughout 2009, "rents decline could reach 1% or 1.5%," expected Mr. Mouillart. In detail, the study notices that rents have fallen in almost all types of housing except studios (+0.1% early this year against an average of +3.5% between 1998 and 2009). Thus, the rents of the 1 bedroom have fallen by 0.5% against an average of 3.4% each year since 1998. 2 bedrooms and larger housing (5 rooms and more) have lessened by 1.9% (against an average of +3.1% each year over the last ten years) and 2% (against an average of +2.2% each year between 1998 and 2009).
Paris - Ile-de-France region remains the most expensive Since January, rents have come down in more than one city in two (50.4%). In 2008, the decrease had affected less than one city in four (23.8%). Thereby, rents in Paris have diminished (-0.5%). Lease prices also fell in Bordeaux (-4.2%), Strasbourg (-2.4%), Montpellier (-1.2%) or Toulouse (-0.4%). On the other way around, they are up in Lyon (+0.7%), Nice (+1.5%) and Nantes (+1.8%). As to per square meter prices, the difference between Ile-de-France and Limousin regions turned out to be twice as high (17.1euros/m2 against 8.4 euros/m2).
Finally in the beginning of 2009, Observatory/Monitering notes a contraction in the rental market owing to a drop of private sector tenants’ residential mobility (-25.7% against 28.7% in 2008). For Michel Mouillart, the phenomenon can be understood by "households’ concerns" over the damaged economic environment and a deteriorating labor market. Consequently, households prefer to postpone their moving but in case of separation or job transfer, “households’ breathing space remains very limited or even nonexistent," explains the author.
Clamor study concerns new housing/properties market available for renting. This amounts to 1.5 million leases signed. The study relies on developers’ indications, property managers or individuals, representing approximately 12.1% of this market.
For the first time in ten years rents have been lowering