Recent sources state the Paris real estate market will benefit from Brexit, where financial institutions plan to move to the French capital.
According to the director of British Bank HSBC, the company is aiming to relocate over a thousand employees, a costly move of over 12 million euros. Shockingly enough, other companies are also planning to relocate either from or instead of London, which is estimated to be between 200 and 300 million euros. This will in fact have an effect on the Paris real estate market.
Bank of America is another one of these companies, who has recently signed a lease for 9,300 m2 of office space in the 8th arrondissement. It was said that this location will used as a hub for investment banking.
Other companies are also flocking to invest in Paris real estate, such as Arab Bank. Their client relations officer has recently stated that “our decision is not yet final but our priority is to maintain the services we offer to our clientele in Europe. France would be a great location to achieve this end, compared to other places in the EU. Our clients invest heavily in real estate, and have strong commercial relations with France.”
Backed by Macron, there will be several investments in La Defense for office space and skyscrapers in order to well-receive future relocations and business. As house prices are predicted to fall next year for London, it is evident that an investment into Paris real estate is worth-while.