Economic Climate: Disruption Advisory

Although the resilience of the French economy seemed somewhat against the odds in the bleak climate of 2022, with activity up 2.6%, the situation is clearly more strained. 2023 looks set for much more of a cooldown. According to the World Bank, international growth is expected to be among the lowest of the last 30 years, and with only +0.5% anticipated for advanced economies, French GDP may only grow by as little as 0.3%. These, in any case, are the latest forecasts of the Banque de France. Clearly, France looks set to avoid the recession feared only recently, but the downturn is nonetheless severe. No recovery is likely before 2024, when a cautious 1.2% is expected.

Take-Up: Paris Far Ahead

Across the entire Ile-de-France region, take-up was at a level not reached since the health crisis. The increase was 10% year-on-year. A welcome result, even though the majority of the growth took place in the first three quarters of the year, with a slight downturn in the fourth quarter.

Despite dynamic transactional activity throughout the year, immediate supply continued to increase. It reached an unprecedented level, exceeding the 4,300,000 sqm mark in the Ile-de-France region.

Like other market indicators, rental prices in the Ile-de-France region are very disparate, but there is a general upward trend. In parallel, although they declined over the course of the year, accompanying measures began to increase again in the fourth quarter.