the Greater Paris Region
Key office figures and insights for the Greater Paris Region.
Greater Paris region market : more than 1 million m² of office space sold, a very good result for the investment market before a more uncertain year-end.
Take-up in the Greater Paris Region reached almost 497,000 sq m over Q2 2022 taking the overall volume of transactions for the H1 period to 1,008,400 sq m; this is in line with the 10-year average (-2%).
Immediate supply remained stable with 4,088,000 sq m of office availability in the Greater Paris Region by the end of June 2022, representing a vacancy rate of 7.4%. However, there were some substantial contrasts in the changes seen by sector.
A concentration of activity in the most central locations has maintained upward pressure on rental values with average rents reaching new records of €420 per sq m/year for new space and €415 per sq m/year for second-hand.
Over €4.2 billion was invested in the Greater Paris Region over Q2, taking the overall investment volume for H1 2022 to €7.3 billion. This represents a +29% year-on-year increase but is -7% lower than the 5-year average and +4% higher than the 10-year average.
French investors, who carried out several major transactions over H1, have a high market share (71% of activity). The most active foreign investors were the British with 10% of investments.
With the increases in bond rates seen over Q2 and tighter credit terms on the horizon following the ECB’s announcement that it plans to raise interest rates, prime yields have risen for all asset types - apart from retail.