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Paris city council tightens rules on tourist rentals -Breaking

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© Reuters. FILEPHOTO: Aerial view showing the Eiffel tower and Seine River as well the Paris skyline. France. July 14, 2019. REUTERS/Philippe Wojazer/File Photo

PARIS, (Reuters) – The Paris City Council voted today to strengthen the regulations for converting commercial space into rentals. It is doing this to limit the power of home-sharing websites in France.

This comes at a time when officials from key tourist destinations around the globe have blamed Airbnb and home-sharing sites like Airbnb for increasing housing shortages. Property owners love short-term rentals that are lucrative, pushing out residents with lower incomes.

Paris is home to the most Airbnb listings of any city worldwide. A large part of Paris’ local commerce has been lost in certain parts. Ground-level shops were transformed into accommodations for visitors who are booking Airbnb stays. Expedia According to officials from the city, there is Booking (NASDAQ) and (NASDAQ:).com.

Paris lost over 59,000 square meters of its commercial spaces to short-term accommodation in the last six years. Meanwhile, 900 businesses disappeared during the same period, according to a city document.

Airbnb did not respond to questions about new rules. They stated that the majority of Paris hosts are residents renting their homes for additional income and do not anticipate the rules targeting investors and professionals having a “noticeable impact” on activity.

The site added that over 95% of homes rented last year for less than 120 days were below the cap.

New rules state that authorisation for the conversion of a commercial space to short-term lodging will be denied if it is seen to disrupt local employment, housing or commerce.

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