Today, investment in rental property in Paris is yielding lower and lower returns, and the current trend is not downward. For over a year now, prices in Paris have been rising sharply, while at the same time rents have stagnated due to the ceiling introduced in Paris by the Duflot law.

These two factors, taken together, have mechanically made this type of investment more expensive and less attractive for individuals wishing to invest in real estate in Paris. Add to this an unfavorable legal framework for landlords, and this type of investment can easily become financially perilous for the owner, especially if part of the operation is financed by bank debt.

However, there are other ways to invest in real estate in Paris. Offices are such an alternative. In fact, offices offer higher returns for several reasons:

• The first is that selling prices are often lower than those for housing,
• Secondly, the lessor is much more protected under a commercial lease than under a residential lease.
• The third is that rents are not capped.

We'll come back to the characteristics of commercial leases versus residential leases in a future article.

It is generally believed, and rightly so, that rental investment in office property is the preserve of institutional players (banks, insurance companies, sovereign wealth funds, etc.) and private individuals familiar with Parisian real estate investment. It is for these reasons that ANB Capital, thanks to its experience and knowledge of the market, enables private individuals to access this market and benefit from investment opportunities in Paris office real estate.