France

With 68.5 million people and a €2.8 trillion ($3.2 trillion USD) economy, France is Europe’s second-largest economy. Across the country, the real estate market is evolving to meet new priorities, with Paris leading the charge. The French capital has a goal to be carbon neutral by 2050, redesigning streets for pedestrians and expanding green spaces. A €100 billion rail investment is transforming regional connectivity and creating new development opportunities around transit hubs. Meanwhile, the workplace market is shifting as demand for centrally located Class A offices stays strong, but high costs and interest rates limit new builds. Developers are repositioning older buildings into modern, energy-efficient workplaces with strong environmental performance and premium amenities that attract talent. At the same time, a national housing shortage — including for students and older adults — is driving demand for innovative, community-based living models. New “social hotels” are emerging as flexible, hybrid spaces that blend hospitality, housing, and work. For developers and investors, France offers a compelling mix of sustainability-driven innovation, infrastructure growth, and long-term economic strength.

What’s Next

Paris sets the benchmark for climate-responsive urban development.

Paris redesigns its urban fabric to meet aggressive carbon-reduction targets — closing streets to cars, expanding green spaces, and promoting energy-efficient buildings. These initiatives reshape property values and development priorities citywide.

Office repositioning redefines the workplace market.

With limited new construction, developers transform aging buildings into high-quality, sustainable workplaces. Tenants prioritize energy performance, environmental certifications, and strong amenity offerings, making adaptive reuse a key growth strategy for France’s urban office market.

Hospitality evolves toward hybrid spaces that blend hospitality, housing, and work.

Tourism remains robust, and hospitality operators are responding with “social hotels” that blend work, leisure, and living. These amenity-rich spaces expand opportunities for mixed-use development.

Rail Investments unlock regional and transit-oriented developments.

A €100 billion national plan is expanding and modernizing France’s rail infrastructure by 2040. As the plan improves regional connectivity, it creates opportunities to redevelop stations and establish mixed-use and sustainable developments near transit hubs.

Notable Projects

A person standing in front of a sign. — **The 500-Year Building** Regenerative Futures, Venice, Italy

A couple of women sitting at a table in a room with plants. — **Aeonica**

A group of people watching a television. — **Henkel**, Paris, France

Insights from the Gensler Research Institute

Parisians Thrive on Culture, Connection, and Everyday Access

Paris residents express deep satisfaction with their city’s cultural vibrancy and convenience-driven lifestyle. Strong results in recreation, shopping, and neighborhood amenities point to a city where social life and daily needs are key ingredients to a great urban experience for residents.

How satisfied are you with the following aspects of your city?