The 2024 Summer Olympics will be hosted in Paris and several other French cities, including Marseille, Bordeaux, Lille, and Nice. Many are curious about how this massive event will impact rental budgets and housing availability. Here’s a quick look at what to expect based on insights from real estate and relocation experts.
The Olympic Effect
The "Olympic effect" on housing is often exaggerated. Leading up to the Games, there was a surge in marketing aimed at investors, promising high returns and increased sales prices. However, it's more likely that a surplus of properties will hit the market after the Olympics, potentially dampening an already soft sales market
Rental Market Trends
As the Olympics approach, rental prices on platforms like Airbnb are reportedly 200-250% higher than usual, but these inflated prices are only for the peak Olympic period (July 26 to August 11). The Paralympic Games, running from August 28 to September 8, are also seeing high advertised rents, though actual achieved rents are often lower. For instance, properties listed at EUR 700-800 per night are often negotiated down to around EUR 450.
Hotel and Apartment Occupancy
Recent data shows Paris hotels booked to 80% capacity with falling room rates, while apartment rentals are expected to have higher occupancy due to better value. Air France reported a 10% drop in summer flight bookings to Paris compared to last year, as non-Olympic tourists are avoiding the city.
Why Paris Is Different?
Paris regularly handles a massive influx of tourists each summer, with 6-7 million visitors between July and August. The city has a robust supply of apartments and hotel rooms to meet this demand.
Many Olympic events will be held outside the city center, in areas like St. Denis and Versailles, and in cities in other parts of France, near and far: Bordeaux, Marseille, Lille, and Lyon.
About 75% of tickets have been sold to French nationals, who are expected to stay only 1-3 nights near their events. Some estimates suggest that 90% of attendees will be French.
Strict regulations on short-term housing in France require units to be registered for daily rentals, making it difficult for owners to switch from long-term leases to capture short-term Olympic demand.
Infrastructure and Long-Term Impact
Post-Games, the Athlete Village in St. Denis will be converted to residential and retail spaces for 2,500 tenants, potentially easing housing pressure in that area. Improvements to metro and public transit in outer areas may also make these areas more desirable in the future.
Conclusion
The best advice is to enjoy the Olympics on television and avoid scheduling short-term assignments in Paris from July through September.
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