Grand Paris to boost French economy by up to €200bn14 June
According to an independent study for the Société du Grand Paris, the planned Grand Paris Express transport network will give the French economy as a whole a boost of as much as €200bn by 2030, with €73.5bn of economic and social benefits destined for the Paris region.
This additional economic activity would be expected to generate additional tax revenues of €61bn-€88bn by 2030 and €189bn-€253bn by 2040. It calculated that not carrying out the Grand Paris project would reduce French GDP by €144bn-€208bn by 2030, and estimated that the shortfall could even reach €444bn-€596bn by 2040.
“The commitment shown towards the Grand Paris project demonstrates that the city is investing in its future appeal,” commented Nicholas Leach at Athena Advisors. “Everyone knows the cultural side of Paris, which has made it most popular city in the world, but this huge investment will also boost the city’s appeal as a world-leading business hub. Paris is already home to the headquarters of more Fortune 500 companies than London, New York & Beijing and Grand Paris will only add to the city’s appeal as a destination of commerce.”
The study also showed that the €73.5bn calculation for the Paris region includes €44.6bn of benefits to users and the environment from the transport improvements, with a further €29bn coming from employment and productivity gains.
The planned network is a driverless metro system linking the key suburbs and airports, requiring the building of 57 new stations. The SGP says GDP will be boosted by increased economic activity in the inner suburbs, which have the highest productivity levels in the region, and by additional productivity gains as a result of the concentration of specialist activities in new economic clusters.
“Holiday and business tourism will receive a boost, largely due to improve transport connections to Paris’ airports so it’s good news for both residential and commercial property investors,” added Leach. “Those taking a long term view on real estate in the city will be particularly encouraged as this Sarkozy-led initiative shows how the city’s appeal as secure investment destination will long outlive the other less popular ideas of the current government.”