European Outlook : Paris Colliers International France June 13, - - PowerPoint PPT Presentation
European Outlook : Paris Colliers International France June 13, 2018 Colliers International France KEY FIGURES 65 Ms 2 nd 260 20 11,4 % employees years Tenant Rep. market share revenue in Paris, Lyon, of experience in Paris
Colliers International France
June 13, 2018
employees
in Paris, Lyon, Toulouse, Marseille, Bordeaux, Lille, Nancy, Reims & Aix- en-Provence
years
Tenant Rep.
2014-2017
revenue
in 2017
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market share
for >5.000m² surfaces
Economic growth is back
+2,0% in 2017 +1,1% in 2016
Macronmania !
The election of Emmanuel Macron restoring confidence outside of France thanks to structural changes.
Strong Property Fundamental s
Letting market back
growth
Grands Projets
2024 Olympic Games and the Grand Paris Project : dynamics for strong development
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Brexit
Shift of investment allocations towards
actively confirming their interest in France
France & Paris Region USPs Macro economic view Real estate market The Grand Paris Express France & Paris Region USPs
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largest country
in Europe
largest economy
in Europe after Germany and the world’s 5th largest economy
1.656 UHNWIs
(Ultra High Net Worth Individuals) live in Paris, demonstrating its status as a major cosmopolitan destination.
Infrastructure
France has excellent infrastructure including Europe’s largest highspeed railway system, major ocean port facilities and an extensive motorway network
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highest birth rate
in Europe
highest GDP
in Europe 28 in value : 30.9%
and 4.6% of the European Union's GDP, ahead of Greater London and Lombardy.
Technological hub
It brings together a high density of technology companies, world-class competitiveness clusters and one of Europe's highest concentrations in the science and technology sectors.
Air hub
The Paris air hub is continental Europe’s leader: all major European cities are within 2 hours by plane.
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largest portfolio
The Paris region has Europe’s largest commercial Real Estate portfolio (54 million sq m), while La Défense, boasting 3.6 million sq m of office space, 3,600 businesses and 180,000 employees, is Europe’s top business district.
Headquarters
29 of the world’s 500 largest companies listed in the Fortune Global 500 have their headquarters in the Paris region, ranking it 3rd in the world, after Beijing and Tokyo, and 1st in Europe.
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foreign investors
the Paris region is Europe’s second most attractive city region to foreign investors after London, and is ranked as
locations for strategic business activities.
foreign finance
more than 500 international businesses, banks, insurers and financial firms operate in the French capital, where they employ nearly 126,000 people. In all, €90 billion are currently invested by foreign investors in French financial assets.
France & Paris Region USPs Macro economic view Real estate market The Grand Paris Express Macro economic view
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Reforms completed with impact on Real Estate
wealth (ISF) replaced by a real estate wealth tax (IFI)
Reforms completed with impact on country’s attractiveness
employee contributions and increase of the CSG
rate
Reforms in progress or to come
unemployment insurance
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0% 1% 2% 3% 4% 5% 6% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (f) 2019 (f) 2020 (f) 2021 (f) 2022 (f) Eurozone France Germany Spain United Kingdom
0% 3% 5% 8% 10% 13% 15% 18% 20% 23% 25% 28% 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (f) 2019 (f) 2020 (f) 2021 (f) 2022 (f) Eurozone France Germany Spain United Kingdom
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624 641 639 782 698 693 685 1014 962 1117 1298 200 400 600 800 1000 1200 1400 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
France & Paris Region USPs Macro economic view Real estate market The Grand Paris Express Real estate market
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0€ Bn 10€ Bn 20€ Bn 30€ Bn 40€ Bn 50€ Bn 60€ Bn 70€ Bn UK Germany France Spain Netherlands Austria & Switzerland Sweden Italy Poland Russia
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3.00% 3.95% 4.55% 5.00% 4.50% 3.50% 3.75% 3.30% 3.25% 3.00% 3.45% 800 € 315 € 300 € 230 € 225 € 1,455 € 670 € 490 € 425 € 380 € 520 € 0 € 200 € 400 € 600 € 800 € 1,000 € 1,200 € 1,400 € 1,600 € 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% Prime yields Prime rents
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0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 0m² 500,000m² 1,000,000m² 1,500,000m² 2,000,000m² 2,500,000m² 3,000,000m² 3,500,000m² 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (f) 2019 (f) 2020 (f) 2021 (f) 2022 (f) Paris Region Office Take-Up (m²) GDP in France (%)
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0€ Bn 5€ Bn 10€ Bn 15€ Bn 20€ Bn 25€ Bn 30€ Bn 35€ Bn 40€ Bn 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Annual volume 11-year average
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65% 9% 15% 4% 7% Offices Industrials & Logistics Retail Residential Hotel 70% 14% 9% 3% 4%
0% 1% 2% 3% 4% 5% 6% 7% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (f) 2019 (f) 2020 (f) 2021 (f) 2022 (f) Interest rate, 10-Year Government Bond Yield Prime Office Yields - Paris CBD 220 bp
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73% 75% 82% 67% 74% 70% 73% 77% 0m² 200,000m² 400,000m² 600,000m² 800,000m² 1,000,000m² 1,200,000m² 1,400,000m² 2011 2012 2013 2014 2015 2016 2017 Q1 2018 First hand Second hand
51% 64% 61% 40% 28% 35% 55% 61% 0m² 200,000m² 400,000m² 600,000m² 800,000m² 1,000,000m² 1,200,000m² 1,400,000m² 2011 2012 2013 2014 2015 2016 2017 Q1 2018 Pre-letting and turn key schemes Existing
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Arnaud Violette Colliers International France
Business Development General Manager +33 (0)6 14 49 60 76 Arnaud.Violette@colliers.com