An overview of regional markets

Sound local development strategies. A high quality of life. Modern and well-developed public transport links, including high-speed TGV train networks… These are the key words explaining the current boom in non-residential real estate in France’s regional markets. These positive characteristics used to be mostly seen in the biggest cities, but the Covid health crisis that began in 2020 has changed the game.

The lengthy periods of confinement spent away from the cities by some workers, as well as the increased ease of working remotely, especially for executives, are today key factors reshaping the dynamics of regional markets – including for job creation. Certain trends are evolving in ways which no longer automatically favour bigger cities. The major population centres and consumer markets in France currently show an urban expansion which has already been reflected in residential real estate prices.

With regard to investment in service-sector-related real estate, these changes are also evident in the influx that has flowed to regional markets. Since 2008, volume has increased as these markets have matured. Since 2020, the regional proportion of overall non-residential investment within France has risen, reaching 41% in the first half of 2022. (This is even more remarkable in that this figure does not include certain diversification assets such as hotels, leisure centres or healthcare facilities.)