Paris Rental Market: Persistent Pressure, Moderate Price Growth
In Paris, the autumn 2025 rental season confirms a market that remains under heavy pressure, despite rent increases becoming more moderate than in 2023.
The latest snapshot shows that in September 2025, the average advertised rent stood at around €32 per m² (typical range: €25–42 /m² depending on neighborhood and property type). Over the past year, rents in Paris have risen by about 2%, well below the pace seen at the same time last year.
In concrete terms, a one-bedroom apartment of 50 m² typically rents for between €1,600 and €2,100 per month (excluding charges) depending on location, condition, and furnishings.
Demand pressure, however, remains extremely high. At the start of the season, studios and small one-bedroom apartments attracted a flood of applications. Among the 200 most sought-after listings in Paris, each property received an average of 743 applications within just a few days, and sometimes more than 1,000 for smaller, “affordable” units. In the inner suburbs, demand remains strong too, though slightly less intense than in the city center.
Key indicators reflect this tight market: the Rent Reference Index (IRL) rose by +1.04% in Q2 2025 (now at 146.68), setting the ceiling for annual rent adjustments. Rent control regulations remain in force across Paris: the “rent reference plus 20%” serves as the legal cap (officially listed by address and property type). Enforcement has been strengthened, yet non-compliance still affects a notable share of listings.
Two structural factors continue to shape the market:
• Gradual phase-out of energy-inefficient homes:
Since January 1st 2025, properties rated G in the Energy Performance Certificate (DPE) have been banned from rental (for new leases, renewals, or extensions). As a result, part of the housing supply has either disappeared or become more expensive after renovation, while energy-efficient properties drive rents upward.
• Persistently limited housing supply:
Real estate platforms describe the 2025 season as “highly strained,” with record-low supply and sustained demand—even though rent growth has slowed compared with 2023. In the medium term, nearby suburbs such as Boulogne, Levallois, Issy-les-Moulineaux, Vincennes, and Montreuil are emerging as viable alternatives, but competition there is now similarly fierce.
One-Year Perspective
Consolidated data for 2024 had already shown this trend: rents in Paris increased by +3.1% in 2023 (as of January 1st 2024, the average rent stood at €25.5 /m², all leases combined, according to OLAP). In 2025, rent growth continues but at a slower, IRL-aligned pace, amid an ongoing shortage of small units and rising tenant expectations regarding condition, furnishings, and energy performance.
Practical Advice for Your Inbound Employees
1) Prepare the application file before the first visit
Include an employment certificate, ID, bank details, and other relevant documents depending on the property. A solid guarantee is highly recommended (several options are available—your consultant will advise). Reactivity is crucial when 20, 50, or even 100 candidates are applying for the same apartment.
2) Broaden the search area
For a given budget, looking slightly outside the city center (along metro lines 1, 4, 9, RER A/B, or future Grand Paris Express routes) often allows for a larger or better-quality apartment while keeping commute times reasonable. With rents ranging from €25 to €42 /m², balancing location, condition, and equipment is key.
3) Check rent control and energy rating before signing
Compare the proposed rent to the official maximum reference rent (by address and property type) and request the DPE certificate. A property rated G can no longer be legally rented since 2025. If the rent exceeds the cap, tenants may report or renegotiate—the City of Paris simplified this process in 2025.
4) Plan for a “temporary → permanent” sequence if necessary
For transferees with tight relocation schedules, a short-term furnished rental can provide flexibility while waiting for the ideal long-term option—particularly useful during university term starts, when demand peaks and supply is lowest.
In a market where everything can change within hours, a well-prepared application, clear targeting, and compliance with key regulations (IRL, rent control, DPE) make all the difference for your inbound employees.
At Management Mobility Consulting, we combine on-the-ground expertise and regulatory insight to ensure a smooth and secure relocation experience for your teams.