The office market in the greater Paris region regained momentum in the first half of 2021 with a 14% year-on-year increase in take-up. This growth was seen at all space size levels, which is very reassuring for the future.
Even so, we are still a long way from returning to pre-COVID levels. We will have to wait until next year to see a return to these levels of demand.
Paris remained dynamic with a 24% increase, even though this mainly concerns a market for small and medium-sized spaces. This allowed it to maintain a break-even vacancy rate.
Large transactions (> 5,000 sq m) in Q2 were mainly in the Hauts-de-Seine department, with six out of a total of nine transactions.
In the greater Paris region, vacant space was up, more significantly than in Q1. It passed the 4 million sq m mark, leading to the current vacancy rate of 7.7%.
There was little effect on rents on new buildings, which even continued to rise in the Paris CBD, albeit more moderately. Incentives further increased overall in all tertiary areas. However, rents on second-hand offices began to fall in all areas except the CBD. This was especially the case in areas presenting an oversupply.
The office market in the greater Paris region regained momentum in the first half of 2021 with a 14% year-on-year increase in take-up.