Weekly insights about property in France!

Subscribe and don't miss an issue!

The French Rental Market Outlook for 2025

Volume XXIII, Issue 5

Two Paris apartment buildings

By Jay Corless, edited by Adrian Leeds

As the 2024 rental market data rolls in, the latest findings confirm what many renters and investors have long suspected: the French rental market continues to heat up. Paris and Nice are prime examples of this evolving landscape’s challenges and opportunities. The latest market data from LocService.fr* has confirmed what we’ve seen on the ground: Paris is back, and the Côte d’Azur is hotter than ever!

Let’s break this down with some numbers. In 2024, the average rental across France was €723 per month. Before you start packing your bags thinking that’s a bargain, let me tell you what gets you in Paris—a cozy (and by cozy, I mean tiny) 15m² (161.5 square feet) studio. Yes, you read that right. The same budget in other cities like Rouen would get you a spacious 54m² (581.2 square feet) apartment, but this is Paris, and the rules are different.

Bar graph showing what size apartment 723 euro gets you where in France

PARIS: THE GOLD STANDARD AT A HIGH COST

Paris remains the crown jewel of the French rental market, commanding a whopping 10.7% of all rental searches nationwide. After a brief post-COVID slump when everyone thought they wanted to escape to the countryside (remember that?), the capital is experiencing a significant renaissance. Regarding price per square meter, the Ile-de-France region is now 78% more expensive than provincial France, and Paris is 164% more expensive!

It’s no surprise that Paris is the epicenter of the rental market in France. With its timeless allure, global appeal, and undeniable status as a cultural and economic hub, demand for rental properties here remains unrelenting. Yet, it comes at a price.

Example of a rental apartment in Paris, France

In 2024, the average rent for apartments in Paris climbed significantly, with one-bedroom units leading the way. The high cost is driven by global interest and significant local demand from young professionals, expatriates, and students drawn to the capital’s unrivaled opportunities.

While Paris has long been the most expensive city in France, the gap between its rental costs and those in other cities has widened. In certain arrondissements, renters pay more than €35 per square meter monthly, with furnished apartments remaining particularly popular due to their appeal among international clients and flexibility. These furnished rentals can be profitable for landlords, allowing them to charge premiums in such a competitive market.

The Canal Saint Martin in Paris, France

The Canal Saint Martin in Paris

The limitations imposed by rent control laws, or “encadrement des loyers,” have brought some stability, but the tension between supply and demand means that premium properties often break these boundaries. Housing scarcity in highly desirable neighborhoods like Le Marais, Saint-Germain-des-Prés, and Montmartre implies that competition for available units remains fierce.

What’s particularly fascinating is how Paris has reclaimed its position in the “tension locative” rankings. This term measures the difficulty of finding a rental property in an area. Paris now sits in third place, right back where it was before the pandemic, proving that you can’t keep a good city down.

Bar graph showing the tension indicator for Paris, France

NICE: THE RISING STAR OF THE SOUTH

But, here’s where it gets exciting. Nice has been quietly climbing the ranks. In 2024, it jumped three places in the most-searched cities list, now sitting pretty in fifth place with 2.43% of national rental searches. The Alpes-Maritimes department, where Nice is located, accounts for 4.4% of all rental searches in France.

Map of France with sidebar showing the percentage of searches for rentals in particular parts and cities in France

Known for its Mediterranean charm, mild climate, and vibrant culture, Nice has become a hotspot for renters looking for a blend of quality of life and cosmopolitan amenities. But with increased attention comes rising prices.
In 2024, rents in Nice surged, though they remain below those of Paris. The city is especially attractive to retirees, seasonal renters, and young professionals, each with unique demands. Apartments with sea views, modern amenities, and proximity to the famed Promenade des Anglais command a premium, reflecting the global appetite for this iconic city.

The sea and beaches in Nice, France

Nice shoreline

The market in Nice also sees an influx of demand for short-term rentals, particularly in the luxury sector. International visitors often seek high-end furnished accommodations for extended vacations or temporary relocations, further driving up prices in key neighborhoods. For property owners, this provides opportunities to cater to an international clientele while capitalizing on the thriving tourism industry.

Example of a rental apartment in Nice, France

This surge in Nice’s popularity isn’t surprising. The city offers that magical combination of Mediterranean lifestyle, cultural richness, and relative value compared to Paris. While you might only get a small studio in Paris for the national average rent of €723, you’ll get considerably more space in Nice, though don’t expect the bargains of years past—the secret is out!

Distant view of apartment buildings in Nice, France

WHAT THIS MEANS FOR INVESTORS AND RENTERS

These trends tell an essential story for North Americans considering investing in French property. The rental market is experiencing a “tension galopante”—a galloping tension pushing prices up. The national tension score has jumped from 3.35 to 4.8 in just one year. In major cities like Paris and Nice, the competition for good properties is fierce.

Some particularly telling statistics: 59% of rentals are now furnished properties, up significantly from 38% in 2019. This reflects the market’s adaptation to student and young professional demands and landlords’ strategies to maximize returns in a competitive market.

Both cities grapple with the same core challenges: insufficient housing supply to meet escalating demand, regulatory constraints, and the need to balance affordability and profitability. Yet, these challenges also present opportunities for those looking to invest strategically.

For Paris, focusing on high-demand areas and offering well-furnished, competitively priced units can secure long-term tenants. In Nice, the demand for short-term rentals and luxury properties opens doors for investors willing to adapt to seasonal trends and cater to the international market.

Example of a rental apartment in Paris, France

A luxury rental apartment in Paris

LOOKING AHEAD

The 2024 rental market report underscores Paris and Nice’s resilience and appeal as premier locations in France. While affordability concerns loom large, each city’s unique character ensures its continued desirability for renters and investors alike.

The challenges facing the French rental market in 2025 are significant. Restrictions on renting energy-inefficient properties (the infamous “passoires thermiques”), the end of the Pinel tax incentive scheme, and continuing difficulties in accessing credit, put pressure on both supply and demand. However, there are opportunities in these challenges. For investors willing to renovate properties to meet new energy standards, there’s potential to stand out in a market where quality properties are increasingly scarce.

Chart of the passoires thermatiques in France

Dwellings with high energy consumption, known as “passoires thermiques,” are no longer allowed to be rented out. As of January 1, 2023, the maximum final energy consumption threshold for homes in mainland France is 450 kWh/m2.

Whether you’re considering Paris for its eternal appeal or Nice for its rising star status, one thing is clear: the French rental market remains dynamic and, despite the challenges, continues to attract both domestic and international interest. As we always say in France, “Plus ça change, plus c’est la même chose”—the more things change, the more they stay the same.

A bientôt,

Adrian Leeds in Paris, FranceAdrian Leeds
The Adrian Leeds Group®

P.S. Whether seeking a long-term rental property or a property to purchase as in investment or to live in, we’re experts in the field. Do not hesitate to contact us to help you find exactly what you’re looking for—in Paris, Nice or anywhere in France! Visit our website for more information.

*Note: This article is based on LocService.fr’s 2024 rental market report data.

SHARE THIS POST

Leave a Comment




Let Us create a custom strategy for you

You can live or invest in France-now.

Property for sale

what's happening

Check out upcoming events, conferences, or webinars. Join us!

GET FINANCING

Learn about French Property Loan Information.

French Property Loan logo

Read & Subscribe

Dive into more by reading the Adrian Leeds Nouvellettre®

Better yet, subscribe to both and get the updates delivered to your inbox.

Adrian Leeds in red beret and sunglasses

Get started with your dream of owning property in Paris.

Join us on Youtube

Dive into more on how to live, invest & escape to France

Be sure to subscribe!

Advertise with Us

Deliver your message to 15,000+ Francophile readers in our Nouvellettres®

Save money on currency exchange. See who we use and recommend.