Police intervened on Tuesday to respond to the hostage-taking situation in Rue des Petites Ecuries in the 10th arrondissement of Paris.
Special unit officers cordoned off streets in the area while firefighters were reaching the scene of the incident.
“I was told it was a hostage crisis. The whole neighborhood is closed. My car has disappeared. I suspect the Prefecture of having removed it because it was right in front of the place,” one resident said, Presstv reported.
Police said there was no indication that the hostage-taker, who was described as unstable, had terrorism motives although authorities would not elaborate.
Some reports said the man, who was believed to be armed, claimed that he had a bomb in his possession.
The hostage-taker also told police that he had hit one of the victims with a wrench, saying that he was “seriously injured”. One of the hostages was a pregnant woman.
France is still on high alert after a string of attacks claimed the lives of more than 245 people around the country over the past three years.
Authorities have lifted a state of emergency that had been in place just after the Paris attacks in November 2015, but soldiers continue to patrol major tourist sites and transport hubs on an anti-terror mission.