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Knight Frank Global
French Market reports
As a commercial property estate agent, Knight Frank offers professional services for residential property investment and commercial property rental in France. We also provide specialist advice on investing in offices to rent in Paris and obtaining an accurate valuation of property in France.
This department produces surveys, analyses and projections for all property markets including office, commercial or investment.
Some reports are issued annually in French and English. You will find them below for downloading.
Paris Europe Express 2011
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After Paris Vision and Paris Digest, Knight Frank is pleased to present our third publication, Paris Europe Express.
While Paris Vision provides an annual forecast of the corporate real estate market, and Paris Digest provides quarterly summary updates, Paris Europe Express aims to situate the Paris market in its broader European context.
The entire Knight Frank European network has collaborated on this new publication, focusing in particular on the graphics. Our objective was to compare like with like; with that in mind, we have redefined the areas analysed, starting with Paris and London.
In this comparison of European cities, Paris not only holds its own, but stands out as one of Europe’s brightest stars.
Paris Digest Q4 2010
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Highlights
- Companies occupied nearly 2.2 million sq.m. of office space in Ile-de-France (greater Paris region) in 2010. Transaction activity rose by 16% over the previous year.
- One of the main features of 2010 was the start of a new cycle on the rental market, which started an upward phase that is likely to be long lasting.
- The rental market continued to be spurred primarily by the objective of streamlining real estate. However, there were also more companies responding to the growth in their real estate requirements. Net absorption climbed back to nearly 25% of transaction activity.
- Companies focused primarily on modern buildings, as obsolescence was clearly perceived as a handicap for the user.
- Stabilisation and a slight contraction were the main features of 2010 as far as supply was concerned. The vacancy rate amounted to 7% in Ile-de-France at the end of December.
- Office space offered to companies continued to be marked by obsolescent items; new or renovated structured accounted for only 22% of available supply.
- Upward pressure on rents was confirmed for prime buildings, especially in the Paris central business district and La Défense.
- The investment market grew at a fine pace in 2010. The increase in investment levels amounted to nearly 57% with nearly € 8.3 billion invested in the Paris region.
- Yields remained stable in the fourth quarter of 2010, although prime rates contracted by nearly 100 basis points over the year as a whole and are now between 4.75% and 5.00% in the Paris central business district.
Paris Digest Q2 2010
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Highlights
- More than 1.04million sq m of office space was taken up in Ile-de-France during the first half of 2010. Transactional activity has increased by almost 16% compared to last year displaying a clear trend reversal.
- For the full year, transactional activity should be slightly over 2 million sq m, which will set 2010 as an average, yet reasonable year for the letting market in the Ile-de-France region.
- The letting market is characterised above all by companies rationalising their occupational costs. Companies are striving to reduce their overheads and are moving to cost-efficient buildings, whilst making the most of the favourable market conditions. However, the global growth in companies’ office requirements has stopped.
- Businesses are targeting high-quality, modern buildings and are looking to avoid premises that are not energy efficient, or obsolete spaces that are perceived as costly and disfunctional.
- Availability has stabilised for the first time since summer 2007. The vacancy rate in the Ile-de-France region at the end of June stood at 7%. As with the Paris office stock, availability is very much second hand with barely a quarter being new or restructured.
- The downward adjustment of prime rents has passed. Rents have stabilised since the beginning of 2010. There are early signs of upward trends however, particularly in the Central Business District in Paris.
- The investment market has accelerated rapidly. The increase in volumes invested stands at almost 77% compared to last year with almost 2.3 billion euros have been invested in the Paris region during the first six months of 2010.
- Prime yields began to fall towards the end of 2009, and this was further confirmed at the beginning of 2010 with a compression of almost 25 basis points. Prime yields currently lie between 5.25 and 5.50% for the Paris CBD.