Give us the ability to regulate the local real estate market - France Urban President, Joanne Rolland.

Most 35 mayors of French major cities and metropolitan presidents are demanding regulation of the market for tourist furnished apartments to counter the housing shortage.

This problem has arisen due to the exponential growth in the number of such apartments offered through rental platforms. Cottage neighborhoods and rural areas are being impacted by this development, accelerated by tax incentives for owners of these apartments. Certain neighborhoods near major cities are becoming an avenue for creating dozens of apartments every month.

Tourist apartments bring owners 2.5-3 times more income than ordinary rentals. Currently, a 71% tax credit is available for classified tourist apartments, compared to 30% for regular non-furnished rental apartments. Nearly 1 million tourist apartments are replacing "regular" lodging. This proliferation of apartments is causing significant imbalances in the housing market and choking out the weaker sections of the population in outlying urban areas. It also contributes to the tensions created by tourism and brings about significant changes in local life.

Local politicians cannot remain indifferent and inactive in the face of such a situation. The French urban union France urbaine has been warning the government about this problem for several years, but its proposals face support for the liberalization and disintermediation of these activities. The introduction of a lodging tax for tourist apartments and the creation of a registration number have helped collect better information, but the 120-day limit (30 days in Amsterdam, 31 sam in Barcelona) is easily circumvented by platforms and professional renters.

The new proliferation of boutique cities could lead to new postponements of tougher regulatory measures. Communities and associations of localities should have the legal, financial and human resources to implement and monitor regulatory measures for the rental of furnished apartments.

Number of ministers have pledged possible changes in relation to the Draft Finance Act 2024, particularly in relation to tax incentives for tourist apartments. Unfortunately, the decisions made under emergency 49.3 have resulted in only moderate changes. We again demand that tax incentives be brought to cost price in the next stages of the Finance Bill.

The transversal bill should include tough and clear measures regarding: change of destination, legal consolidation of compensation rules, quota experiment, transparent data transfer platforms, creation of tourist lettings status and expansion of mandatory energy efficiency certification for tourist apartments. If this bill includes some or all of these measures, we will support it.

Besides these urgent measures, attention is also focused on working on new phases of decentralization and the Housing Act, which could bring more structural measures and make voluntary areas responsible for housing policy. To be effective, we need to have regulatory powers in the marketplace: regulating rental prices, the land market, raising taxes for empty apartments, expanding the right to pre-purchase. We also need additional funding for energy renovation, regulatory and budgetary capacities that each territory can adapt to its reality, whether it is attractive or, on the contrary, repulsive. We are ready to take our share of responsibility, and we expect the state to do the same.