Parisians hope to be able to rent out their chic apartments at a higher price during this time the Summer Olympics this summer are beginning to curb their lofty ambitions as they contend with subdued demand and an oversaturated market.
Real estate agencies that can help Parisians offer their permanent homes as temporary rentals for vacationers, say they are driving down prices for luxury rentals in swank neighborhoods and dampening the expectations of owners who had hoped to ride the wave of visitors 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 just agents who are disappointed by the exaggerated hype. Many overzealous owners offered their apartments for three or four times the usual nightly rate, only to find 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 new linens and tasteful decoration. “We’re talking to the owners” about how to set prices, she adds.
According to several real estate companies, high-quality first homes with an area of 100 square meters currently command around 10,000 euros per week. Some had decided on 20,000 or 30,000 euros just a few months ago.
According to a data provider for short-term rentals, in mid-April two-thirds of the total available nights in four- and five-room apartments in Paris were still available during the Games AirDNA. (The company’s data reflects the more conventional vacation rental platforms, such as 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 listings that are not booked, the average available prices during the period apply Olympia The period reflects a 35% premium compared to the previous two weeks.
At Barnes, only 10% to 20% of the company’s Olympic portfolio is leased, with most bookings completed 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 continue to lag since most wealthy visitors traveling to Paris had already booked their accommodation a year ago when they got their Olympic tickets. There is also a risk of people canceling bookings if they notice prices drop and find something cheaper.
Christophe Ouvrieu, head of the Breteuil branch of real estate company Junot, built his own home – a 150 square meter apartment near Place de l’Europe in the 8th arrondissement Airbnb last July, hoping to make a profit during the Olympics. Shortly afterwards it was rented for the duration 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 many luxury homeowners, the cost of getting their apartment ready for vacationers simply isn’t worth it if they have to cut prices, so experts suspect they’ll give up 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.”