The changes taking place in French property law during the second half of 1999 and the first part of 2000 have been inversely proportional to the amount of activity in the market
This concerns legislation and regulations to permit the control of installation of businesses in the Paris (Ile de France) region with a view to balancing economic activities, both within the region and as between such region and the rest of France.
In the absence of a decree in December 1999, renewing the existing exemption from an office development permit (agrément) for users of 1,000m2 or more of offices in the Paris region, such permit was again required from 1 January 2000.
While the agrément was required for the use of office premises of 1,000m2 or more in the Paris region, a decree dated 9 May 1995 exempted such premises from agrément if the following conditions were met:
(a) the premises to be completed by 31 December 1994 at the latest; or
(b) the filing of the declaration of opening of the site (pursuant to a planning permission) at the town hall by 31 December 1994; and
(c) the signing of a lease (without conditions precedent) by 31 December 1998, subsequently extended to 31 December 1999, at the latest.
Since the limit of 31 December 1999 was not renewed at the end of 1999, users of 1,000m2 or more of office space in the Paris region had to obtain an agrément as of 1 January 2000. This was also of concern to investors, be they landlords or purchasers of buildings let after 31 December 1999.
However, a decree dated 26 April 2000 reinstated the exemption and also extended its scope. No permit (agrément) is required in the Paris region for a change of user of premises, “whatever be their nature”, whenever the premises were completed and whenever the lease was signed (after 30 April 2000).
The above liberalisation only concerns the private sector. Public sector users are still subject to controls: this should be borne in mind by investors letting to such users. Furthermore, construction in the Paris (Ile de France) region is still subject to control.