France Office Real Estate Market Size (2024 - 2029)

The France office real estate market has experienced significant shifts due to the COVID-19 pandemic, which altered workplace dynamics and accelerated the adoption of remote working. Despite challenges such as economic constraints and external shocks, the market has shown signs of recovery, particularly in Paris, where activity has picked up momentum. This resurgence, although still below historical averages, indicates a positive outlook for the market's expansion and development in the coming years.

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Market Size of France Office Real Estate Industry

France Office Real Estate Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR 3.70 %
Market Concentration Medium

Major Players

France Office Real Estate Market Major Players

*Disclaimer: Major Players sorted in no particular order

France Office Real Estate Market Analysis

The size of France Office Real Estate Market is USD 24.16 billion in the current year and is anticipated to register a CAGR of over 3.7% during the forecast period.

  • Due to restrictions, social distancing policies, and a work-from-home culture, the COVID-19 epidemic significantly impacted France's office real estate market. The COVID-19 pandemic significantly changed workplace working habits and locations. As a result of the pandemic, the majority of businesses have implemented remote working. Exogenous shocks like the conflict in Ukraine, soaring inflation, and supply constraints are stifling the French economy. These factors have made economic activity considerably less than anticipated at the start of 2022.
  • The effects of the pandemic were felt in Q4 2021 in the office property market, albeit less so than in 2020. The consequences of this crisis were still shaking the market; at the end of the third quarter of 2021, take-up had increased by 32% year over year to a total of 1,207,900 sq m.
  • In 2021, major deals, which were far less common than the previous year, would return. The prediction of demand taken up at the end of 2021 was between 1.6 and 1.7 million sq m in this environment of a cautious but genuine recovery in the office market, taking into account a traditional acceleration of signed contracts at the end of the year.
  • Since Q2, the Paris office market has gained momentum and picked up speed, with more volume placed in Q3 (195,900 sq m; + 94% in one year).
  • Although undoubtedly increasing, this level is still below the ten-year average in this industry. However, this increase in marketing is quite optimistic for the upcoming quarters and shows a genuine resurgence in commercial real estate activity in the capital.

France Office Real Estate Industry Segmentation

Office real estate is the construction of buildings for leasing and selling purposes to companies from different sectors. This report aims to provide a detailed analysis of the office real estate market. It focuses on the office real estate sector's market insights, dynamics, technological trends, and government initiatives.

France Office Real Estate Market is Segmented by Key Cities (Paris, Marseille, Lyon, Toulouse, and Other Cities). The report offers market size and forecasts for the France Office Real Estate market in value (USD billion) for all the above segments.

By Key Cities
Paris
Marseille
Lyon
Other Cities
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France Office Real Estate Market Size Summary

The France office real estate market is experiencing a gradual recovery following the significant disruptions caused by the COVID-19 pandemic, which altered workplace dynamics and accelerated the adoption of remote work. Despite challenges such as the Ukraine conflict, inflation, and supply constraints, the market is showing signs of resilience, particularly in Paris. The Paris office market has seen a resurgence in activity, with increased take-up and rental growth, driven by innovation and technological advancements. Paris remains a key investment destination due to its robust economic foundation and attractive returns, outpacing other regions in France. The city's office market continues to be a vital component of real estate portfolios, with rental value growth expected to offset rising discount rates.

The French office real estate market is characterized by high competition and fragmentation, with numerous global and regional players such as JLL France, Knight Frank, and CBRE France actively participating. The market is poised for further opportunities as companies prepare to meet future demands. International investment flows are increasingly targeting the Paris market, highlighting its appeal as a major commercial hub. The market's recovery is supported by strategic developments and acquisitions, such as the partnership between ICG Real Estate and Atlantic Real Estate, which focuses on light industrial and logistics properties. The acquisition of Business Immo by CoStar Group Inc. further underscores the market's dynamic nature and the ongoing efforts to enhance its global presence.

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France Office Real Estate Market Size - Table of Contents

  1. 1. MARKET INSIGHTS AND DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Dynamics

      1. 1.2.1 Market Drivers

      2. 1.2.2 Market Restraints

      3. 1.2.3 Opportunities

    3. 1.3 Technological Innovations in the Office Real Estate Market

    4. 1.4 Government Regulations and Initiatives in the Industry

    5. 1.5 Insights into Rental Yields in the Office Real Estate Segment

    6. 1.6 Insights into the Key Office Real Estate Industry Metrics (Supply, Rentals, Prices, Occupancy/Vacancy (%))

    7. 1.7 Insights into Office Real Estate Construction Costs

    8. 1.8 Insights into Office Real Estate Investment

    9. 1.9 Industry Value Chain Analysis

    10. 1.10 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.10.1 Threat of New Entrants

      2. 1.10.2 Bargaining Power of Buyers/Consumers

      3. 1.10.3 Bargaining Power of Suppliers

      4. 1.10.4 Threat of Substitute Products

      5. 1.10.5 Intensity of Competitive Rivalry

    11. 1.11 Impact of the Covid-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Key Cities

      1. 2.1.1 Paris

      2. 2.1.2 Marseille

      3. 2.1.3 Lyon

      4. 2.1.4 Other Cities

France Office Real Estate Market Size FAQs

The France Office Real Estate Market is projected to register a CAGR of 3.70% during the forecast period (2024-2029)

JLL France, Knight Frank, CBRE France, Kaufman & Broad SA, Legendre Group and Hines are the major companies operating in the France Office Real Estate Market.

France Office Real Estate Report Snapshots

FRANCE OFFICE REAL ESTATE Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)