COMPARE AND CONTRAST THE OFFICE MARKET IN FRANCE AND GERMANY Essay

COMPARE AND CONTRAST THE OFFICE MARKET IN FRANCE AND GERMANY - Essay Example The latest realty boom period started around the last financial quarter of year 2002. The technology bubble bust of the late 90’s had passed and the rippling effect of the terrorist incident of September 11, 2009 had waned. Both these issues that were negatively weighing down on economies worldwide had somewhat moved to the background. That is when people started taking an advantage of the then financial boom and invested heavily into the real estate market, both residential and commercial. And that is when huge banks with their billion dollar profits started lending to sub-prime realty market to maximize their profits during the financial boom time. The financial turmoil or the bubble burst in commercial realty sector; especially the ‘office market’, has been substantial. Europe saw its first ever GDP decline for two consecutive quarters. The largest of the European economies of France and Germany were also not spared the onslaught. France has a stable government system, clear tax policy, low corruption and a prolific cultural tradition. All these elements offer investors a great opportunity to invest at a time when French real estate is depressed not because of its inherent financial strength but because of a global financial turmoil. Commercial real estate in France is in a period of significant re-pricing. France offers ‘office space’ options mainly in and around Paris, the greater Lyon region and the Bordeaux region. The rates in regions other than Paris offer competitive choices to investors who are planning to invest in office space at these emerging locations, which are better priced and offer a great investment opportunity. Paris Region covers 12,000 km ² and claims to be Europes biggest commercial real estate offer, much more ahead of London for office space and having almost 49 million m ² of office space. Office market trends in the Paris region vary for different districts (Paris region,