Real Estate Sales on the Horizon for the State in Budget 2026: What Remains Unsold?
### French Government Plans to Sell Tax Office Building Near Paris and Establish New Real Estate Company
In a bid to address economic challenges and reduce the country's budget deficit, the French government is considering the sale of a tax office building located near Paris, spanning 4,000 square meters. The exact selling price of the property remains confidential.
The government owns a vast property portfolio, estimated to be worth several hundred billion euros, according to the Prime Minister. However, details about the specific plans for managing or selling these properties are not yet available.
Last year, the state recovered 222 million euros from asset sales, but the best lots have already been sold. The revenue generated from the tax office building's occupants, who will pay rent, is expected to contribute to further revenues for other works.
In the medium term, the benefits of this plan are expected to be realised. The new real estate company, established for better management of the properties, will be responsible for renovating and then renting the spaces to occupants. The company could potentially resell renovated buildings in the future.
The French government owns approximately 200,000 buildings, including ministries, prefectures, and other buildings, totalling 95 million square meters. This is more than the area owned by the German government (60 million square meters). The sale of these properties is seen as a way to better exploit public heritage and generate revenue by François Bayrou.
However, the decision to sell certain assets to a new real estate company has not been universally accepted. Some individuals have expressed a preference for the building to be transformed into public equipment rather than sold. François Jolivet, deputy of Horizons & Independents of Indre, stated that the State is not capable of maintaining its park due to its size and dispersion.
The economic context, with France's budget deficit reaching 5.8% of GDP, has prompted the government to consider measures like freezing public spending and scrapping public holidays. The trend among French real estate investment funds to invest more abroad, rather than domestically, could also influence how government-owned properties are managed or sold.
Despite the lack of specific information on these plans, it is plausible that the French government might consider optimising its asset portfolio by selling or reorganising government-owned properties. The new real estate company is expected to play a significant role in this potential reorganisation.
The French government, known for its substantial property portfolio, might consider utilizing its wealth in French real estate to address economic challenges, such as the sale of a tax office building near Paris. This proposed company, established for better property management, could potentially generate revenue through the sale of renovated buildings or the collection of rent from occupants.
