February 28, 2022
The reviews are in - Paris Region is the best place to do business in France and benefits from a unique positioning at the crossroads of Europe. The economic powerhouse of Europe, Paris Region holds the highest GDP in the European Union, the highest concentration of Fortune Global 500 corporations, boasts a dynamic real estate market and is ranked the top worldwide destination for international meetings.
Whether your company is an up-and-coming startup or getting ready to grow and reinvest, Paris Region has what investors need to succeed. Let’s dive in, shall we?
Why invest in Paris Region?
With a little more than 8,000 start-ups in the Paris Region alone, and more arriving every day, Paris Region is first and foremost a go-to hub for entrepreneurs. Station F, the world’s biggest startup campus, is the heart of its buzzing startup scene but not only. In fact, there are hundreds of other incubators and accelerators in the region to help entrepreneurs grow their companies.
On top of that, France has been stimulating business diversity by creating a simplified tech visa program, some of the best R&D tax credits in the OECD (30% of R&D expenditure is tax-deductible), and the highest amount of R&D expenditure in Europe. Plus, with over a million companies established in the region and 27 Fortune 500 headquarters, it’s no coincidence that businesses are choosing Paris Region to find their new clients.
With overall R&D spending equivalent to that of Silicon Valley and more than 165,500 people employed in global R&D centers, Paris Region is recognized not only on a European scale but a global one. Companies large and small benefit from the astounding diversity of leading industry sectors present in the region, covering everything from deeptech, to cleantech to the film industry. This allows different sectors to innovate and build together, thus achieving more than they could on their own.
By bringing together large corporations, SMEs, start-ups, academics, and researchers, Paris Region spurs remarkable collaborations and open innovation partnerships. As a direct result, Paris Region stands out for its high number of international projects and high level of patenting activity, particularly in the private sector.
A Thriving Real Estate Market
Competitive real estate prices
Beyond its unique startup scene, Paris Region is a port of call for investors looking to invest in its real estate market. It is one of the most dynamic markets in Europe and home to the largest international real estate investments. In fact, the Paris property and commercial real estate markets generate the third most important revenue source from foreign direct investments.
In addition, compared to other global cities like London and New York, Paris Region offers a major property management advantage: Paris property has affordable real estate prices and the largest stock of office space. Home to 1.1 million businesses and to the widest real estate market in Europe, Parisian real estate stands out for its price, size, and square meter property offer of 55 million.
New Real Estate investment opportunities
Short term and co-working spaces
With the recent health crisis, new trends have now emerged. Companies were pushed to rethink traditional real estate and office location for more short-term properties. Investing in shared workspaces and communal properties is now becoming increasingly common. The rise of coworking, especially in third-party locations is now very common. International companies will easily find co-working spaces to set up their new business.
Smart Building
Paris Region is also central to new real estate developments and has engaged very strongly in Smart Building, making sure new buildings are built in low carbon materials.
Private property developers are taking a broader approach to commercial real estate with a new focus on building sustainability. Property development projects are thus placing an emphasis on improving the quality of life for Paris Region’s inhabitants and on placing residents back in the heart of the city. In fact, some fifty or so urban real estate projects currently underway in Paris Region are mixed-use. The aim is to combine living, working, and leisure spaces in order to create communities that offer a pleasant way of life.
The Grand Paris Express
Paris Region’s geography will change when the Grand Paris Express network gets up and running. It is Europe’s largest development project. A total of €35.6bn is being invested in the Grand Paris Express network, which will cover an area of over 4 million m2 in Paris Region and is designed to ensure that 90% of the region’s population live within 2 km of a station; this will ease transit flows between the region’s catchment areas and economic hubs.
Businesses are prepared to leave the capital and cross the ring road to set up in the middle and outer suburbs. There are numerous opportunities to be found within these expanding frontiers, with examples including the Arboretum green office campus in Nanterre and the Métal 57 building in Boulogne-Billancourt resulting from the reconversion of the former Renault production site into BNP Paribas Real Estate’s future head office.
Business made easy
A skilled workforce
The Paris Real estate market is not the only asset that attracts investors when it comes to business. In fact, most companies are attracted by the region's skilled talents.
Paris Region offers a reservoir of engineers, and this talent pool will only keep increasing considering the current 45,000 students in the Region’s 36 engineering schools. The local engineers are some of the most sought after thanks to the high-quality education they receive, which combines creativity, discipline, and empirical thinking. In addition, Paris Region currently has 72,000 students specializing in Business & Management and being trained in world-renowned Business schools such as HEC, INSEAD, ESCP Europe, and more.
A business-friendly environment
With its unique positioning in the heart of Europe and excellent transport network, Paris Region is one of the largest economic regions in Europe. It is a business-friendly hub that provides synergy, diversity, and collaboration. So why do so many companies and start-ups choose Paris Region to invest and grow their business? Let’s take a look at some major success stories of companies stimulated by this business-friendly atmosphere.
Since setting up in Paris Region in 1999, FedEx has been able to connect Europe to the rest of the world through its hub at Paris Charles-De-Gaulle Airport. Julien Ducoup, Managing Director of FedEx operations at Paris CDG Airport, describes Paris Region as the perfect place for business growth and innovation. When asked why FedEx decided to set up in Paris Region as opposed to another region, Ducoup highlights the fact that:
A Quality of life second to none
Beyond the connectivity and strategic ecosystem, Paris Region is also a place where people enjoy a good work-life balance. It is this convergence of culture, renowned research centers, and ground-breaking start-ups that explains why so many global companies have decided to invest in Paris Region.
When it comes to quality of life, most mention Paris Region's vast nature and green spaces. Indeed, 75% of the Paris Region is made up of green space, rivers, and lakes, while the city center itself boasts the most gardens and parks of any European capital. An unrivaled number of museums, theaters, cinemas, sport venues and clubs, restaurants, and food markets await. International families can rest assured knowing that affordable childcare and international schools with 17 language options are available throughout the region.
Companies, or those looking for the best investment and real estate opportunities in Europe, will find Paris Region to be a welcoming environment.
To find out more about the top reasons to invest in Paris Region's property and real estate market, download our guide 5 Reasons to Invest in Greater Paris or access all our guides here.
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