Parisians hope to have the opportunity to rent out their chic apartments at a better price during this time the Summer Olympics this summer are starting to curb their lofty ambitions as they contend with subdued demand and an oversaturated market.
Real estate agencies that might help Parisians offer their everlasting homes as temporary rentals for vacationers, say they’re driving down prices for luxury rentals in swank neighborhoods and dampening the expectations of homeowners who had hoped to ride the wave of holiday makers to the capital.
“The supply is there, but we don’t have as much demand as we thought,” says Omar Meniri, head of Paris leasing at Engel and Völkers. “Unfortunately, at the moment it’s not what I was hoping for.”
It’s not only agents who’re disillusioned by the exaggerated hype. Many overzealous owners offered their apartments for 3 or 4 times the same old nightly rate, only to seek out that few people were willing to spend money on them.
Nathalie Garcin, co-president of real estate firm Emile Garcin, says she has reduced prices to half of what the owners had originally sought, while also becoming more selective in her offerings.
“We only take very nice apartments that are in perfect condition,” says Garcin, with recent linens and tasteful decoration. “We’re talking to the owners” about find out how to set prices, she adds.
According to several real estate firms, high-quality first homes with an area of 100 square meters currently command around 10,000 euros per week. Some had selected 20,000 or 30,000 euros just just a few months ago.
According to an information provider for short-term rentals, in mid-April two-thirds of the full available nights in four- and five-room apartments in Paris were still available through the Games AirDNA. (The company’s data reflects the more conventional vacation rental platforms, comparable to Airbnb and Vrbo.) The average price for these properties is €1,108 per night – a 15% premium over average prices booked for the two-week window before the games. For offers that should not booked, the common price increase through the Olympics is 35% in comparison with the 2 weeks before.
At Barnes, only 10% to twenty% of the corporate’s Olympic portfolio is leased, with most bookings accomplished in January. says Benjamin Brjost, vacation rental director for the Paris region.
“We are seeing a sharp slowdown,” says Brjost, hoping that the booking rush he expected in April could still materialize in May.
Some experts warned that current deals could proceed to lag since most wealthy visitors traveling to Paris had already booked their accommodation a 12 months ago once they got their Olympic tickets. There can also be a risk of individuals canceling bookings in the event that they notice prices drop and find something cheaper.
Christophe Ouvrieu, head of the Breteuil branch of the actual estate company Junot, put his own residence – a 150 square meter apartment near the Place de l’Europe within the eighth arrondissement – on Airbnb last July within the hope of staying there of the 12 months to make a profit Olympia. Shortly afterwards it was rented at some point of the games.
“Back then, people said you could rent for three times the price, but my wife and I chose double,” says Ouvrieu. “We’ve seen people listing at absolutely crazy prices because they thought, ‘Why not me?'”
But for a lot of luxury homeowners, the associated fee of getting their apartment ready for vacationers simply is not value it in the event that they must cut prices, so experts suspect they’ll quit on the prospect entirely before lowering their rental prices.
“These are customers who are doing so well that they can afford not to rent at all,” said Baptiste Albot, head of Left Bank rentals at Emile Garcin. “Nobody wants to rent for 5,000 euros a week. They’re going on vacation anyway and they don’t care if it’s rented or empty.”
