Covid, growth and office real estate
| 1,853,400 SQ M | 56 | 4 M SQ M | 7.4% | €910 |
| Take-up in 2021 | Transactions > 5.000 sq m in 2021 | Immediate supply as at 31/12/2021 | Vacancy rate as at 31/12/2021 | Prime rent - Paris CBD as at 31/12/2021 |
Following the shock seen in 2020, the French economy is at last emerging from crisis while health restrictions associated with new waves of Covid outbreaks continue to disrupt normal business activity.
Renewed GDP growth in 2021 (+6.7%) and a positive outlook for 2022 (around 4%) are creating the right conditions for the return of office transactions. Business leader confidence has resulted in figures for the business climate index that are far higher than the long-term average (114 points in November 2021) and this was seen across all sectors.
The employment climate is also encouraging with 112 points in November 2021 compared with an average of 84 in 2020.
The planets therefore appear to be aligned with the economy offering an improved outlook for business. We now need to understand how this recovery will influence real estate plans. Businesses are emerging from the crisis with a fresh ideas for their working environments as well as requirements for hybrid modes of working and therefore need to develop a clearer understanding of their office space requirements.
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