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.
In 2012, take-up reached 2,38m sq m representing a fall of 3.4% yoy, which put an end to the upward trend of the last two years. 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, generally speaking, is barely noticeable. Thus, the average rent for Ile-de-France is practically unchanged at €318 per sq m/year.
Source : Savills