Real estate: Paris on the same wave length as London
Paris and London share many similarities appreciated by companies and investors alike. A recent study by Deutsche AWM provides a round up of their points in common.
In the world of real estate, London and Paris are often pitched against each other. Yet these two great European capitals have many points in common that international investors favour. Such is the view offered by a study published this March by Deutsche Asset & Wealth Management entitled “European Mega Cities: real estate investment in London and Paris”.
First: both London and Paris benefit from having their political, economic, and financial powers “under one roof”. An attractive feature for business people and company directors who need contact with these different spheres of influence in order to further their projects. What is more, the two capitals dominate their respective national economies, each is home to a sixth of their country’s population and each generates 25 to 35% of their nation’s GNP.
Second: each city offers established business districts that make up the two largest corporate real estate markets in Europe. By way of reminder, in Paris these are the Central Business District (quartier central des affaires – “QCA”) and La Défense and in the British capital, the West End and the Docklands. Each market boasts high rents, good liquidity, a high occupancy rate, and buoyant demand.
In terms of established business activities, the two capitals share similar profiles with London more specialised in finance whilst Paris is more diversified. According to a study published by KPMG, the French capital is home to an eclectic range of businesses operating in the software (26%), business services (14%), marketing (12%), financial (9%), and hotel and tourism (4%) sectors.
Third: these two mega cities have committed to new infrastructure development projects that should aid in their expansion in years to come. Whilst Paris develops the “Grand Paris Express” rail network, London is building the “Crossrail”. These mega-projects confirm the position of these cities on the international stage. Greater London and the Ile-de-France region are vast conglomerates in full growth.