According to commercial realty experts, Knight Frank, Paris is a better option than London for start-ups. In a report published on October 5th 2017, they explain their findings.
The report studied cities where rental prices are highest. The cost of renting an office is much cheaper in Paris than in London or New York.
Differences in rental prices
The annual cost of renting an office for 4 colleagues is 51, 498 € in Paris. In New York, the cost is 56, 258 €. However, in London this figure rises to 59, 815 €. At 693 €/month more, London rentals are 14% higher than those in Paris.
Start-ups seek different working environments
Cyril Robert, Head of Research for Knight Frank, explains what young people are looking for. They want to launch their organizations outside typical business areas such as la Défense or the Champs-Élysées. Instead, they seek more diverse areas with nearby places to socialize after work. They tend to live in the east of Paris. Therefore, they want to work in more centrally located places, with good public transport. Moreover, these neighborhoods tend to offer cheaper rent.
Coworking spaces on the rise
Furthermore, Knight Frank investigated how much a start-up could save by choosing a coworking office. They concluded that in Paris, a start-up could save 63% of their rent if they chose a coworking space. Only 4 cities out of the 20 included in the study could do better than Paris : Washington D.C., Sydney, Beijing and Melbourne.
In London a year’s rent in a coworking office for 4 people could cost 25,800 €. Conversely, in Paris it will only set you back 19,000 € (26% less). Coworking spaces are increasingly popular amongst Millennials who seek collaborative and stimulating work environments.
Other factors that make Paris a better option than London
Cyril Robert maintains that Paris is now one of the major cities for start-ups. He also cites other reasons that make Paris a better option than London. Station F, which recently opened, is one of these. Station F is a tech incubator for start-ups in Paris’ 13th arrondissement (district). Xavier Niel, the founder of French telecommunications company Free, launched it earlier this year.
At 56Paris, we believe that Paris’ appeal for start-ups is yet another reason that it is a prime city to invest in. If you’re interested in purchasing or renting commercial or residential property in Paris, please contact us.
Photo credit: Station F