The trends and outlook for the office rental market in the Paris region in 5 key points.
- As expected, the take-up at the end of 2024 is below the 1.8 million m² mark. With 1,750,352 m² transacted, the annual total is down -11% year on year and -19% compared to the ten-year average. In detail, central Paris is losing ground (-9% year on year), La Défense is outperforming (+60%) and the Western Crescent is declining (-32%).
- The slowdown in transactional activity observed in Paris should be put into perspective because the sector is having to deal with two phenomena: the sharp increase in lease renewals (not counted in the take-up figures) and the appeal of subletting for users. Indeed, the costs associated with office property are still being scrutinised by the latter and the question of ‘stay versus go’ is more relevant than ever in the most central geographical sectors.
- In the rental market, the inequalities between the sectors throughout the Ile-de-France region remain glaring: at the end of 2024, Paris alone accounted for 47% of regional take-up, while its weight in immediate supply was only 18%. Conversely, the inner suburbs represent only 17% of transactional activity in Ile-de-France but 28% of availability.
- The immediate supply has increased by 19% over one year and reached a new record at the end of 2024 with 5,642,000 m² vacant. All sectors saw their level of availability increase with the exception of La Défense. In the Ile-de-France region, Grade B space remains in the majority at almost 70%. The vacancy rate stands at over 10%, an unprecedented level at the regional level.
- Prime rents are also a good indicator to highlight the persistent imbalances within the Ile-de-France region. At the end of 2024, these will vary between €228/m²/year (Second Ring) and €1,167/m²/year (Paris CBD), revealing a difference of more than €940!