Property investment in Paris reached €3bn (FFr19.7bn) in the first half of 2001, according to CB Richard Ellis’ market index brief for the city. This figure is less than half the €8bn reached for the whole of 2000.
Rental transactions fell by 20% compared with the first half of 2000. This was due mainly to a lack of supply in areas such as La Défense and the Golden Crescent.
However, Paris’s suburbs have seen an increase in activity due to this lack of supply in traditional business districts. Transactions for 5,000m2 developments are up 17% in Seine Saint-Denis and 78% in Val-de-Marne.
CB Richard Ellis predict that overall take-up will not exceed the 2.3m m2 reached in 2000 and are more likely to level off at between 1.8m m2 and 2m m2.
Prime CBD rents remain high at between €762 (FFr4,998) and €838 (FFr5,497) per m2 a year and values in the Rive Gauche-Bercy area rose by 16% to reach €518 (FFr3,398) per m2 a year.
Immediately available supply has stabilised at just under 1m m2 and only 218,000m2 of new supply will be delivered before the end of 2001.
