Nice Implements Stricter Regulations on Short-Term Rental Market
Mayor Christian Estrosi announces comprehensive measures to combat the housing crisis amidst the rise of tourist rentals in the French city.
On April 8, Mayor Christian Estrosi of Nice announced a significant shift in the regulation of short-term rentals amid a growing housing crisis.
Estrosi asserted, "I will not allow the citizens of Nice to be obstructed from living in Nice!" as he outlined a series of measures aimed at curbing the proliferation of tourist rentals in the city.
The mayor criticized the rapid increase in short-term accommodations, stating that Nice currently has over 13,000 active listings, contributing to a housing market heavily dominated by tourist rentals.
According to municipal data, approximately 6% of Nice's housing stock has been converted into short-term rentals, compared to rates of 3% in cities like Marseille and Paris.
In specific neighborhoods, such as Vieux-Nice and the Promenade des Anglais, up to 70% of tourist accommodations are owned by professional investors.
Estrosi emphasized the detrimental impact this has on locals, students, and newcomers seeking affordable housing.
The city has been proactive in addressing the situation, previously introducing a mixed rental scheme allowing for nine months of student leases and three months of summer rentals.
This initiative has already facilitated housing for 150 students in collaboration with local housing agencies and the Metropolitan authority.
With the recent enactment of the LE MEUR law on November 19, 2024, the city is poised to implement enhanced regulations.
Provisional permits for tourist rentals will now be limited to three years without renewal, and the maximum rental period for primary residences will decrease from 120 to 90 days per year.
Property owners will also be required to provide energy performance diagnostics and sign declarations confirming adherence to co-ownership regulations.
In the 39 neighborhoods identified as most affected by housing shortages, a quota system will be instituted to reduce the number of temporary rental permits by half.
Once the annual cap is reached, no further permits will be issued, with applications managed through a digital platform featuring set submission periods.
The municipal council is set to deliberate on the proposal to lower the rental limit to 90 days starting mid-May, coinciding with the Metropolitan authority's efforts to create stricter regulations.
Moreover, the mixed rental system will be institutionalized as part of these new policies.
Statistical highlights regarding the short-term rental market in Nice include:
- A marked increase in available tourist accommodations, with approximately 13,692 listings that accounted for 5.7 million booked nights in 2022.
- Nice holds the highest number of short-term rental listings in the Alpes-Maritimes department, with a 6% share of total housing stock compared to Marseille and Paris at 3%.
- Many properties are being marketed by investors who typically rent their units for an average of 208 days a year, representing 29% of the market.
- Concentrated in 32 sub-neighborhoods defined by the French National Institute of Statistics and Economic Studies (INSEE), these areas account for 70% of all listings in Nice, with 70% of them owned by investors.
Seven other sub-neighborhoods have been recognized for significant tourist rental activity.
- The financial profitability of short-term rentals is reportedly between four to eight times higher than standard annual leases, resulting in increased property prices, especially for smaller units.
Estrosi asserted, "I will not allow the citizens of Nice to be obstructed from living in Nice!" as he outlined a series of measures aimed at curbing the proliferation of tourist rentals in the city.
The mayor criticized the rapid increase in short-term accommodations, stating that Nice currently has over 13,000 active listings, contributing to a housing market heavily dominated by tourist rentals.
According to municipal data, approximately 6% of Nice's housing stock has been converted into short-term rentals, compared to rates of 3% in cities like Marseille and Paris.
In specific neighborhoods, such as Vieux-Nice and the Promenade des Anglais, up to 70% of tourist accommodations are owned by professional investors.
Estrosi emphasized the detrimental impact this has on locals, students, and newcomers seeking affordable housing.
The city has been proactive in addressing the situation, previously introducing a mixed rental scheme allowing for nine months of student leases and three months of summer rentals.
This initiative has already facilitated housing for 150 students in collaboration with local housing agencies and the Metropolitan authority.
With the recent enactment of the LE MEUR law on November 19, 2024, the city is poised to implement enhanced regulations.
Provisional permits for tourist rentals will now be limited to three years without renewal, and the maximum rental period for primary residences will decrease from 120 to 90 days per year.
Property owners will also be required to provide energy performance diagnostics and sign declarations confirming adherence to co-ownership regulations.
In the 39 neighborhoods identified as most affected by housing shortages, a quota system will be instituted to reduce the number of temporary rental permits by half.
Once the annual cap is reached, no further permits will be issued, with applications managed through a digital platform featuring set submission periods.
The municipal council is set to deliberate on the proposal to lower the rental limit to 90 days starting mid-May, coinciding with the Metropolitan authority's efforts to create stricter regulations.
Moreover, the mixed rental system will be institutionalized as part of these new policies.
Statistical highlights regarding the short-term rental market in Nice include:
- A marked increase in available tourist accommodations, with approximately 13,692 listings that accounted for 5.7 million booked nights in 2022.
- Nice holds the highest number of short-term rental listings in the Alpes-Maritimes department, with a 6% share of total housing stock compared to Marseille and Paris at 3%.
- Many properties are being marketed by investors who typically rent their units for an average of 208 days a year, representing 29% of the market.
- Concentrated in 32 sub-neighborhoods defined by the French National Institute of Statistics and Economic Studies (INSEE), these areas account for 70% of all listings in Nice, with 70% of them owned by investors.
Seven other sub-neighborhoods have been recognized for significant tourist rental activity.
- The financial profitability of short-term rentals is reportedly between four to eight times higher than standard annual leases, resulting in increased property prices, especially for smaller units.
