15th Real estate land cost barometer: 2023 key tax figures in a crisis market

In 2023, in France:

• The land cost of offices is €19/m²
• The land cost of a business is €15/m²
• The land cost of a warehouse is €7/m²

A heavy impact of tax rates on land costs

Ayming observes an average increase of 1,7% in tax rates between 2022 and 2023, with significant variations in different regions. Paris stands out with a remarkable increase of almost 35%, confirming its position as the most expensive real estate market.

Numerous regional specificities

For offices: The national average stands at €19/m2, with Paris reaching an average of €28/m2 (coupled with a TB+TASS* at €23/m2) and Montpellier retaining its status as the most expensive city in the provinces at €31/m2. Mulhouse remains the cheapest city at €9/m2.

For businesses: In mainland France, Strasbourg stands out with a land cost of €2/m2, while Paris and Lille have the highest costs at €25/m2 (+€8/m² of TB+TASS*) and 21 €/m2 respectively.

For warehouses: The range of median land costs is narrower, with Metz and Besançon as the cheapest cities at €4/m2, and Baie-Mahault and Fresnes in the lead with costs of €19/m2 and €14 /m2 (+ €2/m2 of TB+TASS*) respectively.

Decisive lessons for real estate players

This edition of the real estate land cost barometer highlights two phenomena:

• the strong heterogeneity of costs from one region to another
• the appearance of new taxes in the regions such as the tax on offices in PACA (which may raise questions about a possible extension to other geographical areas).

Ayming, with its 37 years of experience, continues to support companies in the management, optimization and security of their taxes, providing valuable insight in a constantly evolving real estate market.

For more information and to access the entire 15th Barometer of Real Estate Costs: https://www.ayming.fr/insights/barometres-livres-blancs/barometre-du-cout-foncier-de-limmobilier-edition-2023/

Methodology

This 15th barometer of real estate land costs is based on the median land costs observed over more than 12.000 optimization missions carried out by Ayming's teams. Land costs consist of:

• Commercial property tax;
• The household waste collection tax;
• The office tax;
• The tax on parking spaces.