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France

Paris · EUR

Corpus dated July 2026

For landowners

In France you can be paid in finished apartments (dation) instead of cash — often the most tax-sensible way to convert land into income-producing property. The 2-month neighbour-appeal window is the timeline risk to respect.

For developers

Massing comes from the PLU gabarit envelope, not FAR. Budget the recourse window into programme; DMTO ~6.3% + notaire on land legs; RE2020 spec inflation.

Build cost (USD/m²)

$2,800–3,900

Sale prices (USD/m²) · Mid-market

$9,500–13,000

Sale prices (USD/m²) · Prime

$16,000–28,000

Typical owner share

20–40%

of revenue (charge foncière)

Title system: Notarial deeds published at the Service de Publicité Foncière; cadastre for mapping; no title insurance needed.
Foreign ownership: No restrictions; SAFER pre-emption (rural) and municipal DPU pre-emption (urban, active in Paris).
Authorities: SPF/DGFiP + Ville de Paris under PLU bioclimatique (2024); ABF heritage review in protected perimeters.
Zoning metric: PLU rules (FAR abolished 2014): footprint, gabarit envelope, use quotas + green-surface coefficients — density set by massing envelope.
Height control: PLU bioclimatique caps new builds ~37m (25–31m historic core); ABF near monuments.
Building code: CCH + RE2020 environmental regulation; Eurocodes NF EN; IGH regime >50m.
Approvals & timeline: Permis de construire ~5–10 mo + 2-mo third-party recourse window (litigation can add 12–24 mo). (~12–24 months)
Transfer taxes & fees: DMTO ~6.3–6.4% Paris (2025 uplift applied) + notaire ~1–1.5%; new-build 20% VAT + ~0.7% duty.
Foreign capital: Open; no golden visa; 3% annual tax on undisclosed foreign entity owners.

Common JV structures

Land-as-Equity SPV

20–50%

Owner conveys land into a new project company at an agreed value; that value becomes the owner's equity stake. Developer and investors contribute cash and expertise; profits distribute through a waterfall (capital back → preferred return → promote).

Ground Lease JV

4–6%

Owner keeps the freehold and grants a 49–99 year lease. Developer builds and owns the improvements for the term, paying ground rent (often ~4–6% of land value, with resets). Land and buildings revert to the owner at expiry.

Dation en Paiement

20–40%

French sibling of the permuta: the landowner is paid partly or wholly in finished premises. Often paired with a VEFA forward-sale of the remainder to institutions.

Forward Funding / Forward Sale

5–15%

An institution buys the land day one and funds construction in draws (forward funding), or contracts to buy the completed building at a fixed price (forward sale). The developer earns a development margin; the owner usually exits cleanly at the land sale.

Risk flags

⚠ Third-party appeals (recours des tiers)
⚠ RE2020 cost step-ups
⚠ Political/budget drift on landlord taxation

RE2020 tightening steps add spec cost through 2028+.