The market in the Greater Paris Region

The Greater Paris rental market slowed over Q2 with just under 409,000 sq m of take-up adding to Q1 figures with a year-to-date take-up of 853,300 sq m for the Greater Paris Region by the end of June (down -5% year on year and -18% compared with the 10-year average).

Immediate supply in the Greater Paris Region continued to rise, reaching 4,983,000 sq m by the end of June 2024. The vacancy rate currently stands at 9%.

In the vast majority of Parisian markets, rental values for second-hand space have never been so high, with a peak of €740 in the CBD. The prime rent remained at the €1,000/sq m/year mark.

Activity in the Greater Paris Region investment market continued to slow over Q2 2024, with only €1 billion in investments, a level only slightly higher than Q1 (€920 million). A total of €1.9 billion was invested over the whole of H1 2024, -57% less than in H1 2023 (€4.5 billion) and -73% less than the 10-year average (€7.3 billion).

Prime yields stabilised across all asset types this quarter, at 4.25-4.50% for offices, 4.35% for high street retail, 4.90% for the best warehouses and 5.90% for industrial.