Impact of the 2024 Olympic Games on real estate in the Ile-de-France region

As the Olympic Games approach, the French real estate market has already started to show significant changes, especially within the Address network. A recent internal study shows that already a quarter of agencies in the region are feeling the "Olympic 2024 effect" on their operations. Because of this, many property owners are considering renting out their properties for the duration of the games. However, some, finding the market unprofitable, are opting to take their properties off the market in order to rent them out for this global event. But the reality turns out to be more complicated! Between regulation and calculating profitability, the road to seasonal rentals is dotted with difficulties.

Content:

• A bubbling real estate market around the 2024 Olympics
• Game time rentals: opportunity or risk?
• Practical tips: navigating the 2024 Olympic Games real estate market
• Preliminary measures to be taken before seasonal rental
• Testimonials and case studies: "Address" at the center of the 2024 Olympic Games phenomenon
• Anticipation and adaptation are keys to success in the 2024 Olympics real estate market

A bubbling real estate market around the 2024 Olympics

The Address network conducted an internal survey among fifty agencies in Ile-de-France between September 20 and September 29, 2023. The figures show that 23% of agencies are already noticing the impact of the 2024 Olympic Games on their activities. This study highlights the real excitement around the theme "Olympic real estate 2024", especially among owners who want to maximize their profits. 39% of responses are owners thinking about renting out their properties during the Olympics. 35% are owners wishing to keep their property available for rent during this period. Less frequently, 13% of responses are investors looking for rental properties. Whereas 13% relate to requests for short-term rentals specific to the Olympics.

The impact of the 2024 Olympics on Paris real estate

Game time rentals: opportunity or risk?Seasonal rentals seem to be a popular choice among property owners, especially those with leases expiring in 2024. However, the transition from a regular lease to a seasonal lease, motivated by the 2024 Olympics, is not without obstacles. Here are a few important points to consider:

• Regulation. The Elan Act regulates seasonal rentals by limiting the rental of a primary residence to 120 days per year.
• Registration. In Paris, it is mandatory to register your accommodation on the City Hall website, you must prepare in advance for this.
• Additional Restrictions. Secondary dwellings require City Hall approval to change the use of the premises. You must get approval from the mayor's office to convert a secondary dwelling into commercial space. However, to compensate, you will have to rent out a conventional space of the same size in the same district, changing the other commercial space to residential... This is a complicated process.

"When a lease is in force, you cannot take your property at any time to rent it out seasonally. This is only possible after the lease expires. Provided certain procedures are followed," says Brice Cardy, president of Address.

Practical tips: navigating the 2024 Olympic Games real estate market

Here are some tips for property owners and investors who want to successfully navigate the 2024 Olympics real estate market:

• Check the rules of homeownership. Make sure there is no prohibition on seasonal rentals. Make sure there is no prohibition on seasonal rentals or subletting such as "bourgeois housing" in the rules.
• Contract choice.

Preliminary measures to be taken before seasonal rental

Consent to sublet. It is important for tenants to get written permission from the owners to sublet the apartment. However, the rent should not exceed the original rent, which may reduce the attractiveness of this procedure. Proper insurance. Make sure you have proper insurance for seasonal rentals and check that the tenant is also well insured. You can ask him to provide "out-of-town insurance," which is usually already included in his home insurance policy. Cost and Risk Awareness: Be aware of the additional costs associated with seasonal rentals, such as regular cleaning or providing spotless linens. In addition, there may be certain risks such as insect parasites that require extra attention.

Testimonials and case studies: "Address" at the center of the 2024 Olympic Games phenomenon

Agencies in the Address network report case studies illustrating the impact of the 2024 Olympics on real estate:

• Renting to athletes: one agency near Marne has already rented apartments to Olympic participants.
• Investors: some are looking for properties to rent for the duration of the Olympics and then plan to sell after the event.
• Transition to seasonal rentals: several clients have taken their properties off the market to rent them out for the duration of the Olympics.

"I have not noticed an impact on transactional activity, however, in terms of management and leasing, I have a number of clients who prefer to wait for the Olympics before re-letting their properties on an '89 contract. This applies to about 20% of the portfolio ..." - says the director of the Address agency in Paris.

Anticipation and adaptation are keys to success in the 2024 Olympics real estate market

The arrival of the 2024 Olympic Games in Paris is a major sporting event. But it is also a catalyst for significant displacement in the French real estate market. In fact, the excitement surrounding the theme "Olympic Real Estate 2024" is prompting many industry participants to rethink their strategies, whether owners, tenants or investors. Seasonal rental opportunities are on the rise, thanks to a potential increase in demand. However, they come with significant regulatory and practical challenges. In this context, a successful transition to seasonal rentals requires in-depth knowledge of current legislation, advance preparation of administrative procedures and accurate assessment of risks and benefits. In addition, the examples and feedback collected in the Address network emphasize the diversity of situations and responses offered by different market players. This review shows the importance of careful preparation and consideration of the special dynamics generated by the 2024 Olympic Games. Overall, the 2024 Olympic Games in Paris open up a horizon of opportunities but also pose challenges for the real estate market. A cautious and informed approach in this specific context will enable market participants to maximize the benefits of this global event.