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Office Market Report Q1 2020

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How will COVID 19 affect the real estate market?

 

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Start of the year down sharply

               

Paris supports the quarter

               

Rents on the rise

     

 

At the end of 2019, various indicators suggested that the French economy was headed in the right direction, in a generally calmer economic context. However, the health crisis of COVID-19 and the implementation of containment since the 17th March have totally disrupted this dynamic. The scale of the shock is as unprecedented as it is uncertain, but indicators are already showing a deterioration in the business climate, an expected fall in annual GDP, a year of recession for the French economy and a sharp rise in public spending, due to massive government support for businesses and employment.

In the Paris Region tertiary market, demand placed in the first quarter shows a 37% drop compared to the previous year, a trend that began in the first few months of the year, without benefiting from a generally decisive month of March. While vacancy rates rose in the first quarter and stabilised over the year (5.4%) for the whole of the Paris Region, there is still a significant shortage of supply in Paris (2.5%), while the attraction of the First Periphery was confirmed thanks to an increase in supply that is certainly of high quality (+28% in one year).

Although it is difficult to draw up with certainty the impacts of the health and economic crisis on the real estate market, we propose to share whith you our hypotheses and convictions in this panorama of the 1st 2020 quarter. 


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Office Market Report Q1 2020

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Related Experts

Laurence Bouard

DIRECTRICE ETUDES et RECHERCHE

Paris

Graduated in urban planning and member of RICS, Laurence has more than 20 years of experience in the real estate sector. Since 2011, she has been the head of the Research Department at Colliers International France. She provides its expertise on the real estate markets through consulting missions and the production of ad hoc studies.

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