Brexit and Olympics provide prospects for Paris
The French economy accelerated through 2017 along with much of the EU and the expectation is for stronger growth over the next two years thanks to stronger external demand, a rebound in tourism and more robust business confidence. The appointment of Emmanuel Macron as French president, cuts in business taxes and labour market reforms should support investment and employment.
The construction sector in Paris is likely to feel the benefit of the massive rapid transit scheme linking the city’s suburbs for at least a decade. The USD31bn Euro Grand Paris Express includes four new metro lines connecting seven strategic and economic centres with 70,000 new homes, 68 new stations and 200km of rail network. The project is expected to be completed in ten years.
Construction productivity is improving slowly. Building Information Modelling (BIM) is set to be one of the key drivers behind this as it allows better coordination between stakeholders in the pre-construction phase.
|Cost escalation 2017–18:||1.5%|
|Cost escalation 2018–19:||1.9%|
|Location factor (USD):||82.4|
Paris, with its good transport links to London, sees benefits in Brexit through attracting firms from the UK capital. Meanwhile, the Paris Olympic Games in 2024 will also provide a boost to construction, building stadiums, transport links and accommodation.
This content is part of the International construction market survey 2018