Prices of luxury apartments in Paris cut ahead of Olympics
With 88 days left until the opening ceremony of the Paris Olympics, scaffolding is being erected for seating at competition venues and the Olympic rings are being hoisted across the capital. If you're planning a last-minute trip and haven't decided on your accommodation yet, you may be in luck. Supply has outstripped demand, driving down prices for homeowners, especially luxury apartments, by 30% to 60%.
Back in February, Le Mondereported that while prices were higher than usual, they did not reach the dizzying heights that early spikes suggested, especially as homeowners saturated Airbnb with properties available for rent. Ta. For example, the French Tourist Board reported that the average nightly price in the Paris metropolitan area last September was 759 euros (about 81,400 yen), but in February the same price was 522 euros (about 81,400 yen). The price has dropped to about 560 euros. Kind of like the basics.
euro news Insurance company Leas Lemowa reports that prices are still falling compared to last summer. Last July, a night during the Olympics cost €1,023 ($1,100), but in April the same booking now costs €436 ($468) a night. It is believed that between 3,000 and 3,500 new properties are listed online every month.
Another reason for the decline is that sports federations pre-booked a certain number of rentals in accordance with an agreement with Olympic organizers and began sending some back to the market in late January as plans became clearer. This means that there were new room sales for hotels, and sports organizations continued similar sales in February and March.
bloomberg Many agents helping owners rent luxury apartments during the Olympics have tempered customer expectations, reporting that demand has not been as strong as expected. Other agents are more selective, only taking on clients in good condition apartments in prime locations in Olympic real estate. For ultra-high-end clients who own very expensive apartments, if prices drop too much, it becomes no longer worth renting.
As an example, a 100 square meter (1,100 square foot) luxury property is currently trading for around 10,000 euros ($10,721) per week, but was listed (and rented) two or three times a few months ago. Ta. That amount. According to short-term rental data provider AirDNA, two-thirds of the total number of four- and five-bedroom apartments in Paris are still available.
Olivier Petit of In Extenso, a consulting firm specializing in the hotel market, said: Le Monde The same thing happened at the London Olympics. Prices had come down in the months leading up to the event, but they were still double the normal nightly rental rate. This seems to make sense, considering that the average price for a hotel room in Paris in July is typically 202 euros (about $216).
A lot of preparation is still required to hold such a large-scale event. City officials are wringing their hands in the hope that bacteria levels in the Seine will reach the levels needed to allow open water swimming events to take place (this is primarily about safety). Further rain earlier could have caused the city's sewage system to overflow and wastewater to flow into the Seine. ) With 88 days left until the event, there's still plenty of time to sort out a location for both the event and accommodation.
