Fancy Apartment Rentals for Paris Olympics See Poor Demand and Price Cuts
As the anticipation for the Paris Olympics builds, the city’s luxury rental market is experiencing an unexpected downturn, with many high-end apartments in trendy neighborhoods struggling to attract renters at expected premium prices. Real estate professionals are adjusting strategies and slashing prices in an attempt to lure visitors to these opulent listings.
Omar Meniri, the head of Paris rentals at Engel and Völkers, expresses disappointment, noting that the demand for luxury rentals has not met expectations. The flurry of activity anticipated with the influx of visitors for the Games has not materialized in the way many had hoped, leading to a recalibration of pricing strategies and expectations.
Owners who initially listed their properties at rates three to four times higher than the usual nightly fare are finding few takers willing to pay the premium. This has led to significant price adjustments in an effort to make these luxury accommodations more appealing. Nathalie Garcin, co-president of real estate firm Emile Garcin, shares that she has had to cut prices by as much as half of what owners initially sought, placing a greater emphasis on listing only the most desirable properties – those that are impeccably maintained and stylishly decorated.
Data from various real estate firms indicates that high-end properties that were once listed for €20,000 to €30,000 per week are now seeking renters at approximately €10,000 per week. Yet, even with these price reductions, many listings remain unbooked. A report from AirDNA highlights that as of mid-April, a significant portion of the listings for four- and five-bedroom apartments in Paris during the Olympic Games remained available, with average nightly rates sitting at a 15% increase over normal rates, a far cry from the 35% markup for unbooked listings during the same period.
Barnes has observed a similar trend, with Benjamin Brjost, the firm’s vacation rental director for the Paris region, noting that only a fraction of their Olympics portfolio has been rented out, most of which was secured as early as January. Despite expectations for a surge in bookings, the market has yet to see such an uptick.
Industry experts caution that many high-end tourists likely secured their accommodations a year in advance, coinciding with their Olympic ticket purchases, increasing the likelihood of cancellations if more affordable options become available due to the ongoing price cuts.
Christophe Ouvrieu’s experience offers a personal perspective on the market’s dynamics. After listing his own home on Airbnb for the Olympics, he quickly secured a renter for the duration of the Games, choosing to double rather than triple his regular rental rate. This decision reflects a broader understanding that while some owners aimed for exorbitant rates, the reality of the market has required a more measured approach.
Yet, for many owners of luxurious properties, the effort and expense of preparing their homes for vacationers may not justify the reduced rental rates. Baptiste Albot, head of Left Bank rentals at Emile Garcin, suggests that these homeowners are financially comfortable enough to opt out of renting altogether if they cannot achieve their desired rate.
This trend underscores a significant shift in the Paris luxury rental market leading up to the Olympics. As the event approaches, it remains to be seen how these dynamics will ultimately play out, with potential renters navigating a landscape of fluctuating prices and availability.
