The evolution of rents in the Paris conurbation was, for the first time in the decade, “lower on average than that of the reference index of rents” (IRL), announced Thursday the Observatory of rents of the Parisian conurbation (Olap). According to the first estimates from the Olap survey, the rents of the unfurnished private rental stock increased by an average of 1.8% in 2022 in the agglomeration, against 0.8% in 2021, and by 2. 1% in Paris.
An increase, however, “very lower” than the average evolution of the IRL, capped by the legislator to counter inflation, which constitutes a “situation unpublished for more than ten years”, according to Olap. The IRL is used to reassess the rent of a rental unit each year. It is calculated each quarter by INSEE based on changes in consumer prices (excluding tobacco and rents). Its variation was capped at 3.5% from July 2022 to June 2023 as part of a “rent shield”, in order to limit the impact of high inflation.
“A certain moderation of private rents”
In terms of relettings, the average increase in rent recorded between an old and a new tenant was 2.6% in Paris and an average of 1.8% in the metropolitan area, similar to 2021. Relettings in Paris are are concluded on average at 26.8 euros per m2 in 2022 compared to 26.2 euros per m2 in 2021.
“In a context of the end of the health crisis (…) and a sharp rise in the IRL despite its cap at 3.5%, these results illustrate a certain moderation in private rents due in particular to the annual decree limiting the increase of rents and for the areas concerned of the decrees of framing”, analyzes the Olap.
The first city to have applied the rent control in mid-2019, Paris has been since January 1 the first city to be able to control this control, previously a competence of the State. An association bringing together landlords, tenants and managers, Olap has been producing statistics for 35 years on the levels and changes in rents in the Paris conurbation.