Following a decree signed on 5 April 2019, Paris reintroduced city-wide rent caps after a two-year break. Similar to the previous restrictions, the city determines a reference rent for each area and landlords are not able to charge more than 20% above this price. The rent can be increased, or decreased, dependent on the number of rooms, age of the building and characteristics of the building. Apartments, for example, with specific features, such as a view over Parisian monuments or a balcony, are able to go over the rental cap limit.

Residential leases are set for a period of six years if the landlord is classed as institutional, or three years if the landlord is a private individual, which is the standard lease term in France. In this period, the tenant is free to give notice, while the landlord cannot, except in certain circumstances.

Civil leases do not have such stringent restrictions. Many high-end apartments are rented on a civil lease with a fixed term and rental level agreed between the landlord and tenant. Furnished properties have a standard minimum lease contract of one year, giving greater flexibility for landlords.

Gross prime inner-city yields for Paris stand at 3.1%, lower than New York at 4.0%, but higher than those of Hong Kong and London at 2.1% and 2.8% respectively.

Short lets

Paris is the second most-visited city in the world, attracting more than 19 million international overnight visitors in 2018. The short-let market in Paris has boomed along with the rise of platforms such as Airbnb.

Concerns that short lets are contributing toward the city’s housing shortage have caused local government to implement stricter regulation on the market. Short-let hosts in Paris are required to register with the city hall. Primary residences can be let for a maximum of 120 days a year.

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