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MENA

JLL Reveals “2015 Future Trends for Paris Real Estate”


​JLL Reveals "2015 Future Trends for Paris Real Estate"

With over 2.5 million sq m under development, Northern Paris offers a glimpse of the future under the Grand Paris project.

Middle East, 8th February 2015 – JLL, the world's leading real estate investment and advisory firm, has today released its first 'Future Trends' report  on Grand Paris and commercial real estate. This report is the first in a series which aims to highlight the linkages between the office real estate market and the Grand Paris project

Commenting on the report, Mr. Fadi Moussalli, Head of International Capital Group at JLL MENA, said: "French commercial real estate investment reached well over €20bn in 2014 and may have hit €26bn - its highest annual reading since the financial crisis. Paris assets are continuing to attract investors despite subdued lettings demand, and we expect that this will be appealing to investors in the Middle East. As the GCC dollar-pegged currencies benefit from the strong dollar, many investors are likely to find European real estate assets even more appealing than they have in the recent past".

"Our analysis of three major projects currently under development gives an indication of what the Grand Paris project will bring in terms of land, new transport lines and mixed-use development", explains Virginie Houzé, Research Director for France at JLL.

Main elements and changes in the three selected areas:

1.             Future development

In Clichy-Batignolles 50 hectares of land is due to be developed by 2018/2020 with no less than 260,000 sq m of office space. On the one hand this includes the development of a number of office buildings (140,000 sq m overall) and, on the other hand, the future Cité Judiciaire de Paris (Paris Judicial Precinct), designed by the architect Renzo Piano, which will draw 9,000 visitors to the area on a daily basis.

In Saint-Ouen the Docks district comprises 100 hectares which will be developed over the next 10 years. 310,000 sq m of office space will be added to the existing stock of half a million square metres. Upon completion, office supply in the district will be comparable to current levels seen in Levallois Perret or Issy-les-Moulineaux.

Finally, Northeast Paris with 200 hectares is by far the largest development area in Paris. In time, the area could see 1.3 million square metres of development as well as 28,000 residents and 15 to 20,000 workers. At the present time, one tenth of this territory is on the verge of completion – the new Claude Bernard / Macdonald district.

2.             Transport network improvements

New transport links will strengthen the existing network and offset the current weaknesses these sites have in terms of accessibility.

3.             Urban mix

In Clichy-Batignolles, the former railway enclave will give way to a new mixed-use district as a place to live, travel through or relax with a 10-hectare central park.  

In Claude Bernard, the new mixed-use district comprises 1,600 new homes and over 160,000 sq m of buildings including 68,000 sq m of office space. The final elements are due be completed by the end of 2015 and should create 4,600 new jobs in the district.

The Saint-Ouen Docks Urban Development Zone (ZAC - Zone d'Aménagement Concerté) will allow for the development of a further 900,000 square metres of new buildings. This is development on a considerable scale with 4,000 new homes leading to an additional 10,000 residents and over 300,000 sq m of office space creating an estimated 10,000 new jobs.  

Saint-Ouen and North-East Paris are considered to be within a wider territory which also comprises Saint-Denis and increased activity from the Territorial Development Contract as well as the Saint-Denis – Pleyel transport hub. Saint-Ouen has been recognised as a business office area for several years (in particular the Victor Hugo submarket), but North-East Paris still needs to build its image and the maturation rate of this territory will depend on the level of activity generated in the North.

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