France Office Real Estate Market Insights Forecasts to 2033

• The Market is Growing at a CAGR of 3.65% from 2023 to 2033

• The France Office Real Estate Market Size is Expected to hold a significant share by 2033.

The France Office Real Estate Market is Anticipated to hold a significant share by 2033, growing at a CAGR of 3.65% from 2023 to 2033.  

Market Overview

The commercial real estate (CRE) market refers to the purchase, sale, leasing, and development of properties primarily intended for business or investment purposes. It encompasses a wide range of property types, including hotels, multifamily housing, retail establishments, office buildings, industrial facilities, and specialty properties such as warehouses and healthcare institutions. Unlike residential real estate, which targets individual homeowners, office real estate targets investors, developers, and corporations looking to expand capital or generate revenue from real estate holdings. Even though the industry was equipped to endure the consequences of the pandemic, vacancy rates continued to rise, exceeding 10% in some submarkets in Greater Paris in Q1 2022. On the other hand, the industrial and logistical sectors benefited from the expansion of e-commerce, experiencing a significant boost in demand. Rentals and take-up, which reflect the amount of space transacted, increased in the key markets.

Report Coverage

This research report categorizes the market for the France office real estate market based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the French office real estate market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the France office real estate market.

Driving Factors

Paris has long been seen as a haven investment since it outperforms throughout the cycle's recovery phase and is more defensive against market or economic declines.  Since the recovery from the Global Financial Crisis began in 2014, the French office market and all other submarkets in the Paris region have trailed behind Paris city in terms of total returns.  In addition to having the greatest yearly rental growth trend, supported by favorable net operating income growth and dividends for investors, Paris has had faster capital growth due to a significant cap-rate drop. The Parisian tenant landscape's creativity and creation of products have been the primary factors behind such rental value rise, as the city's economic basis continues to keep up with digitalization, robotization, and other technologies.

Restraining Factors

Businesses no longer have to pay for the overhead of maintaining an office, especially in heavily populated downtown areas, due to the widespread adoption of work-from-home policies. Furthermore, offering their staff the permanent option to work from home is a big priority for many businesses, particularly IT organizations. Therefore, during the projected period, the growing inclination towards the work-from-home model could pose a significant obstacle to the market's growth.

Market Segmentation

The France office real estate market share is classified into cities and property type.

• The Paris segment is expected to hold a significant market share through the forecast period.   

The France office real estate market is segmented by cities into Paris, Marseille, Lyon, Toulouse, and other cities. Among these, the Paris segment is expected to hold a significant market share through the forecast period. As long as growth in rental values balances out increases in the discount rate, the Parisian office market will remain a significant component of real estate portfolios.

• The office buildings segment is expected to hold a significant share of the France office real estate market during the forecast period.       

Based on the property type, the France office real estate market is divided into office buildings, business parks, coworking spaces, and serviced offices. Among these, the office buildings segment is expected to hold a significant share of the France office real estate market during the forecast period. MNCs are spending heavily on commercial premises, particularly offices, in developing countries to expand their worldwide presence. Furthermore, many investors are investing substantially in commercial offices since they offer excellent returns on investment.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the France office real estate market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• JLL France
• Knight Frank
• CBRE France
• Kaufman & Broad SA
• Legendre Group
• Hines
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments

• In April 2022, Business Immo, France's leading commercial real estate news service, was bought by CoStar Group Inc., a significant provider of online real estate marketplaces, information, and analysis for residential and commercial real estate markets. With the purchase of Business Immo, their growing global presence acquires another valuable advantage.

Market Segment

This study forecasts revenue at France, regional, and country levels from 2020 to 2033. Spherical Insights has segmented the France Office Real Estate Market based on the below-mentioned segments:

France Office Real Estate Market, By Cities

• Paris
• Marseille
• Lyon
• Toulouse
• Other Cities

France Office Real Estate Market, By Property Type

• Office Buildings
• Business Parks
• Coworking Spaces
• Serviced Offices