Saturday November 30, 2024
Paris, one of Europe's most popular destinations and a hotspot for Airbnb stays, is following in the footsteps of major cities like London, New York, San Francisco and Barcelona in tightening restrictions on short-term rentals. With 95,000 accommodations currently available, Paris is preparing to impose a new annual cap of 90 nights on Airbnb rentals, associated with heavy sanctions in the event of non-compliance.
Paris joins major cities around the world to fight against short-term rentals
Much like the restrictions imposed in London and San Francisco, Paris will now limit short-term tourist rentals to 90 nights per year. Hosts exceeding this limit will face heavy fines of up to €15,000. The new law, adopted by the French government in May 2024, has received broad political support and is expected to come into force on January 1, 2025.
This decision aims to combat the 20% of Parisian rentals operating without a license and to reduce the dominance of commercial operations on Airbnb. Data reveals that 89.3% of Airbnb listings in Paris are entire properties, and 31.7% of hosts manage multiple listings. Major hosts include international real estate companies like Blueground and Veeve, which together offer more than 1,300 listings.
Severe penalties for non-compliance
Paris' regulations mirror the strict enforcement seen in cities like New York and Barcelona, imposing hefty fines for illegal operations:
- €100,000 fine for rentals without a license or for fraud.
- €50,000 fine for platforms hosting illegal ads.
- €10,000 fine for non-registration as a tourist rental, doubled to €20,000 for false declarations or false registration numbers.
Concierge services managing reservations for non-compliant establishments could also face penalties of €100,000.
A boost for small hotels and local communities
As in Barcelona, where the reduction in Airbnb listings is intended to ease the housing shortage, the crackdown in Paris is expected to benefit boutique and independent hotels. Additionally, fewer short-term rentals could help restore the neighborhood's culture, making downtown living more accessible to Parisians.
For tourists, reduced availability in Paris could encourage exploration of other French cities, such as Lyon and Bordeaux, thereby mitigating the impact of overtourism on central Paris.
Opinions divided on new rules
As seen in New York and other cities, Paris' regulations have sparked debate. While many residents welcome measures to reduce housing shortages and noisy tourism, associations representing vacation rental owners say the laws are too restrictive. The European Holiday Homes Association and UNPLV have expressed concerns about the law's alignment with EU rules and its potential negative effects on families who rely on accommodation for their income.
Airbnb echoes these sentiments, suggesting that stricter limits will benefit large hotel chains, raise lodging prices and hurt local hosts.
Learn from global examples
Paris is building on lessons from London, New York, San Francisco and Barcelona, which have already imposed strict laws on short-term rentals. Even though hotels in these cities have reaped profits, critics point to unintended consequences, such as higher lodging costs and an increase in unregulated underground rentals.
Impact on tourists
While Paris welcomed 47.6 million visitors last year, the new rules could reshape the city's tourism landscape. Reducing Airbnb options may shift travelers to traditional hotels, increase costs or even push tourists to explore less popular destinations.
Paris' journey to regulate short-term rentals is a bold step, drawing inspiration from global leaders in the field. It remains to be seen whether this solution will strike the right balance between reducing overtourism and maintaining an affordable price.
