Explore the explosive growth in rental requests across France’s real estate market. Learn what this means for landlords and prospective tenants.
In the labyrinthine world of French real estate, the quest for suitable accommodation has prompted many tenants to venture beyond their preferred urban confines, thereby reshuffling the rental deck. The latest barometer from the esteemed real estate agency Manda unveils the cities experiencing the highest tenant activity, painting a complex portrait of the current rental landscape.
While the real estate market appears to be exhibiting nascent signs of recovery, the rental sector remains ensnared in a web of pressure. Manda’s recent analysis, published in Les Echos, reveals that the average age of tenants has settled at 34 years. However, the study also indicates a notable easing of rental pressure, with demand plummeting by 20.5% between the third and fourth quarters of 2024. The average number of applications per rental advertisement has dwindled to 13.5, a stark contrast to the 17 recorded in the third quarter, and down from 12.5 in the second quarter and 17 in the first. It is essential to note that this decline coincides with the customary seasonal lull in demand during the year-end festivities.
Paris, unsurprisingly, remains a focal point of rental tension, boasting an astonishing 44 applications per advertisement. Yet, this figure reflects a significant 46% decrease compared to the previous year, with 16 fewer candidates than in the preceding quarter. The primary driver behind this decline? A marked reduction in student applicants. Interestingly, this shift has inadvertently benefitted the inner suburbs, which are emerging as a new epicenter of rental demand. Cities such as Clichy, with a 30% increase in applications (averaging 64 per ad), and Rosny-sous-Bois, which has seen a staggering 132% rise (18 applications), are capitalizing on infrastructural developments, including the extension of metro line 11. The outer suburbs are also witnessing a renaissance, exemplified by Argenteuil, where properties are now being rented in a record time of just nine days, signaling a migration of interest from the capital to its peripheries.
Bordeaux, another city grappling with escalating rental tension, has experienced a dramatic 79% surge in applications per advertisement over the past year, now averaging 27. The median time for ad publication has plummeted to 10 days, even surpassing Paris’s 11 days. This newfound attractiveness can be attributed to a combination of factors: a desirable living environment, comparatively lower costs than those in Paris or Lyon, and the presence of prestigious educational institutions such as Sciences Po Bordeaux. The authors of the study further posit that the Parcoursup and Mon Master systems may have catalyzed a redistribution of students across the territory, resulting in a significant uptick in student applications, which now constitute 27% of total applicants, up from 16% last year.
In contrast, cities such as Lyon, Rennes, and Montpellier present a slightly less fraught rental environment. Manda assigns a tension score of 7/10 to several of these locales. In Lyon, the number of applications per ad has halved this quarter, now standing at 14.5. Despite this reduction, rental tension remains palpable, with a 20% drop compared to the fourth quarter of 2023 and a median publication time extended by two days. The broader region has witnessed a 43.5% decrease in applications per advertisement, suggesting a potential decline in Lyon’s allure, attributed to rising rents and intensified competition from other cities.
Rennes appears to be stabilizing after the post-Covid rental frenzy, with 12 applications per advertisement—a 35% decrease from the previous year. While still a competitive market, the median publication time of 11 days remains below the national average of 15 days. Montpellier, also rated at 7/10, continues to be one of the major cities under pressure; however, the trend seems to be toward relaxation. The average number of applications per ad has fallen by 14% year-on-year and more than 55% over two years, from 25 in 2022 to a mere 11 by the end of 2024. This decrease in rental tension is accompanied by a broader phenomenon in Montpellier: the volume of properties for sale has also declined in 2024, suggesting a more cautious approach within the real estate market.
Cities such as Marseille and Lille present a mixed bag of rental tension. Marseille’s rental market has intensified, with a score of 6/10, as the number of applications per ad has surpassed levels from both 2022 and 2023. Conversely, Lille has experienced a dramatic 59% decline in applications since the end of 2023, averaging 12.5 candidates per advertisement. Manda notes a significant shift in demand towards peripheral municipalities like Tourcoing, where applications have surged by 221%, indicating a migration of interest to the outskirts.
In Nice, despite a tight market with 18 applications per advertisement, demand has decreased by 26% over the past year, attributed to the high cost of living that compels some candidates to seek more affordable alternatives, despite the city’s enviable quality of life. Finally, Nantes is witnessing a stabilization of its rental market after a tumultuous third quarter, with a modest 4% increase in applications compared to the previous two years, averaging nine applications per advertisement.
The France’s real estate rentals market is a complex and evolving landscape, characterized by shifting demands and emerging trends. As tenants navigate this intricate web, the interplay of various factors continues to shape their experiences and choices in the quest for housing.
