Paris 2024 Olympic Games: What impact on prices?
- What are the prizes during the 2024 Olympic Games?
- What is the occupancy rate of the apartments during the Paris Olympics?
- What are the hotel industry's predictions for the 2024 Olympics?
- What impact will the Olympics have on the Paris real estate market?
- Who will be the visitors during the Paris 2024 Olympics?
- How to Rent Your Apartment in Paris During the Olympics?
- How much does it cost to rent a furnished apartment?
- Is it possible to sublet your apartment during the 2024 Olympic Games?
Preparations for the 2024 Summer Olympics have already begun in Paris. World-famous landmarks are turning into sports arenas, official merchandise is selling like hotcakes, and the city's real estate market is gearing up for a busy summer. Even now, at the beginning of 2024, we are already seeing trends in bookings that could indicate how the Olympics will influence the Paris housing market.
What will be the average price per night for hotel rooms during the games? What are the market trends? Have hotel and furnished rental bookings increased this year? Will the Olympics change the Paris real estate market in the long term? In this article, we will compare short to long term rentals in Paris with hotels. Our analysis report on the market trend for the Paris 2024 Olympic Games will shed some light on the situation!
What are the prizes during the 2024 Olympic Games?
First, let's look at how property prices are changing in the run-up to the Paris 2024 Olympic Games. Since the beginning of 2024, prices for short-term vacation rentals have increased by 2 or even 2.5 times while hotels charge about 3 to 3.5 times more for their rooms per night. On average, the nightly price for short-term rental apartments in Paris is 35% lower than for hotel rooms. The average booking value, on the other hand, is 40% lower than the price values listed on various platforms. What does this mean?
We can notice a big difference between what is currently listed and what is booked. The average advertised price ranges between €700 and €800 per night, but the actual value of the night's stay when booking is only €450 per night. This shows a clear difference between the advertised price on average, and the price at which bookings are actually made.
Currently, listed apartment rentals, three, four or five times more expensive than before, are simply not booked. Thus, the only apartments available for rent in Paris at the moment are those listed at very high asking prices. This is also in line with what happened in the London property market when the city hosted the 2012 Summer Olympics. At the time, the average price increase was only 80%, much lower than what had been expected before the event. Given that Paris and London are both major and densely populated capitals, we can expect the same to happen this summer with a similar phenomenon of market price correction.
What is the occupancy rate of the apartments during the Paris Olympics?
Hotels need to anticipate the trend for each new year. According to our market research, the current hotel occupancy rate has reached 50% in early 2024 and is expected to increase further as we get closer to gaming. On the other hand, the occupancy rate of vacation rentals is also increasing, albeit at a slower pace, with an increase of 30%. Just like with hotels, we can expect this to increase even more as we approach the global sporting event. We expect that many new listings of apartments and hotel rooms on booking platforms will be available on the Paris market. This could lead to a substantial drop in the average nightly rate if the law of supply and demand is taken into account.
What are the hotel industry's predictions for the 2024 Olympics?
Speaking of hotels, how many rooms do you think have already been booked for the games? Are the hotels already fully booked? According to our research, only 26% of hotel rooms in Paris will be available during the event. However, we expect that after the Olympics, this rate will increase by 70%, when many visitors have returned home.
We wouldn't be able to say if 74% of the rooms are actually booked or if hotels are using a common technique of setting aside rooms until the event and releasing them at the last minute at higher prices. However, if we consider that the occupancy rate is currently 50% at the beginning of 2024, this means that hotels are keeping some of their inventory for last-minute bookings.
Only time will tell if this technique proves successful, especially since there is a huge risk that most visitors will find other options. Instead of booking a hotel room, they can easily rent a short-term apartment in Paris. This gives them more flexibility, privacy, and the ability to host game viewing parties.
On the other hand, if hotels released all their inventory to the market at the same time, it could create more deals in the market and thus reduce the average nightly rate.
What impact will the Olympics have on the Paris real estate market?
As impatient as the various players in the Parisian housing industry are for the next Summer Olympics in 2024, their overall impact on the furnished rental market in Paris could be limited. It is expected that the majority of the audience will be French nationals from different parts of the country, and the average length of stay in Paris for spectators is estimated to be only a few nights.
Not only will they tend to reduce the need for temporary accommodation, but these short breaks also cast further doubt on the long-awaited increase in short-term rental market prices.
We also anticipate that many landlords who have never rented before, will be tempted to try the experience for the 2024 Olympic Games, given the prices displayed per night for properties similar to theirs. This will create more tourist furnished rentals on the market and bring prices down even lower than what is currently posted.
Other owners, who are not eligible to register their furnished apartments for tourist rental, will offer their accommodation as part of a mobility lease that allows the tenant to rent for a minimum of one month under specific conditions. However, this solution seems less relevant in view of the average length of stay of visitors, as mentioned above.
Nevertheless, the games will undoubtedly boost the already important tourism in the city. This large-scale cultural event in the French capital could improve its image after various tragic and tumultuous events in recent years. With this possible change, we can therefore expect an increased demand for short-term and long-term rentals from foreigners after the 2024 Olympics.
Who will be the visitors during the Paris 2024 Olympic Games?
All these findings would of course be irrelevant without data on the number of people travelling to Paris for the 2024 Summer Olympics. According to everything that has been published so far, we can expect the French capital to welcome around 15 million visitors in July, of which around 1.5 million will come from abroad. With 13.5 million tickets on sale, there is a good chance that 90% of all visitors will be French. Most of them will likely book between one and three nights for their accommodation, which will pose a new problem for hotels and hosts adhering to minimum length of stay restrictions.
How to rent your apartment in Paris during the Olympics?
Do you own a furnished apartment in Paris? Would you like to rent your accommodation during the Paris 2024 Olympic Games? There probably won't be a better time to rent your apartment in Paris than right now. Whether you choose to partner with an agency or not, the process is pretty straightforward:
• First declare your furnished apartment to the Paris City Hall directly online.
• Put your apartment online via the various platforms and agencies.
• Reach out to potential tenants.
• Take a close look at their profiles.
• Define the terms of the lease.
• Conclude the agreement by signing the rental agreement.
Note that if you rent your furnished apartment as part of a mobility lease, you do not need to register your property with the town hall.
How much does it cost to rent a furnished apartment?
Will renting your apartment in Paris during the Olympics be expensive? The process of renting out your property comes with various fees and taxes to consider. In particular, the rent which is considered as income and will be subject to income tax in the category of industrial and commercial profits (BIC) as well as tourist taxes (if applicable). You will also have to pay a management or concierge fee if you hire a real estate agency or concierge for this process.
Is it possible to sublet your apartment during the 2024 Olympic Games?
Let's say you rent a furnished apartment in Paris. A great way to participate in the real estate market during the Olympics is to sublet your home. Subletting is legal in Paris, and as long as you have your landlord's consent, you can do so.
It's a great way to earn a few extra euros to make ends meet or pay for a vacation. Just remember that you remain responsible for the property, especially for any damage caused by the subtenant. The landlord also reserves the right to terminate your existing lease in the event of any major issues during the sublease.
As early as January 2024, we are already seeing significant changes in the Paris real estate market, especially with regard to short-term rentals, their prices and booking rates. These findings further highlight the impact of the Paris 2024 Olympic Games on the city.
Would you like to offer your furnished apartment for rent during the Paris 2024 Olympic Games? We can help you take advantage of this time. Contact us for an appointment!
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Posted on 23/01/2024 by
Andy LECUYER
