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Working Papers (1996), ESSEC Business School

Real Estate Crisis in the Paris Office Market

The aim of this paper is to study the main explanations of the last boom-bust cycle in Paris office space. During the 1987-1990 period, real prices were multiplied by about 2 and reached a peak of 100.000 FF/m2 (more than $1.800 per sq. foot) in 1989. Why did office prices increase so much and for so long at the end of the 1980s in the Paris Region ? This has been debated for several years. This paper identifies both the main capital market fundamentals and the speculative behaviour of most of the French players as important factors in the market euphoria.

NAPPI-CHOULET, I. (1996). Real Estate Crisis in the Paris Office Market. ESSEC Business School.