The biggest falls were recorded in Paris (-10%) and in the Western Crescent (-14%). 

The > 5,000 sq m category accounted for 73 transactions and 51% of take-up. The public and semipublic segment played a key role.

Available supply in Ile-de-France remains stable at 3,59m sq m. Speculative developments and development starts remain limited. The vacancy rate stands at 7.1% in Ile-de-France and 4.5% in Paris.

The prime CBD rent, down 11.7% year-on-year, is now €706 per sq m/year. Rental values for the rest of the market have experienced a gradual fall that, enerally speaking, is barely noticeable. Thus, the average rent for Ile-de-France is practically unchanged at €318 per sq m/year.

GDP edged up 0.1% in 2012. The economy is not moving forward and the confidence of the French is low, this is causing market players to take a more cautious approach. The forecast is for a gradual recovery in the second half of 2013.

“The lettings market has benefitted strongly from the activity of the public and semipublic sector, which accounts for 32% of the lettings exceeding 5,000 sq m.” Marie-Josée Lopes, Head of Research Savills

Source: Savills