The largest office market in Europe


The Paris Region is home to the largest office market in Europe with around 53 million square metres (sqm). It is the third largest in the world after Tokyo and New York. Paris can be considered as having one of the most structured and transparent property markets in the world.

On average, over the last 10 years, the Paris Region letting market has seen 2.3 million sqm of take-up per annum. This places it at the top of all European markets in terms of demand. The region is composed of several submarkets that reflect a high level of economic diversity with a wide choice of business locations.

The vacancy rate in the region is established at 6.7% (as of December 2016). The real estate market has developed from the heart of Paris outwards beyond the ring road (“Périphérique”) of the city due to the improvement in efficiency and speed of public transport over the years.

Two emblematic office markets dominate the Paris business world: the Central Business District (CBD), one of the most historic business locations in Europe which is found between “l’Arc de Triomphe”, “L’Opéra” and La Defense”, which is located in the west of the capital and to this day is the largest office district in Europe.

In terms of real estate investment activity, the Paris Region is second largest in Europe after London with an average of €14 billion invested every year. The liquidity and maturity of the market continually attracts investors looking for new opportunities. There is a strong international dimension with 30 – 50% of total investment volumes coming from foreign investors each year.

In the Golden Triangle area (around the Champs-Elysées), the best properties are sold at yields of between 3.00 – 3.50% (as of Q4 2016). Prime yields are positioned in La Défense around 4.25 – 4.75% and around 3.75 – 4.25% in the Western Crescent submarkets.


Advantages of Paris


The diversity and the competitive occupational costs offered in the region make this market an excellent destination for real estate investment. Paris offers a depth of market that positions it well to resistance from economic downturns :

  • One of the most transparent markets in the world
  • Diversified and international occupier base, the Paris Region being the 1st region in Europe for inward investment from the Top 500 International companies.
  • A large diversity in business sectors and in the size of occupiers, allowing for robust and recurrent take-up levels and low rental volatility.
  • A wide offer of properties with varying architecture, technical characteristics, energy performance and occupational costs.
  • A stable stock of office space limiting any oversupply phenomenon and overall vacancy rates.
  • 2nd largest investment market in Europe
  • Liquid investment market with a strong presence and diversity of international investors.
  • Index-linked rental increases providing stable growth of income returns.
  • Stable capital values with less volatility than its main competitor-London.
  • Excellent accessibility as a result of to a welldeveloped and efficient public transport network, which will be reinforced by the automated Grand Paris transportation project.