The French city of Lyon expects to create 1,922 direct jobs over the next three years and at least twice as many indirect positions following the relocation or expansion of 80 new companies in the region, including a large number of international businesses.

The French city of Lyon expects to create 1,922 direct jobs over the next three years and at least twice as many indirect positions following the relocation or expansion of 80 new companies in the region, including a large number of international businesses.

Outside of Paris, Lyon is the largest commercial real estate market in France, with one third of all investments coming from abroad, according to the second edition of 'Why Invest in Lyon?', a guide to the real estate market in the Lyon region released earlier this year by EY and JLL. The city's real estate offer has grown by 45% over the past 10 years and boasts one of the lowest vacancy rates in Europe.

In 2014, Lyon saw a number of major international companies announce investment plans, including US group Hexcel with a $250 mln investment, German group Fresenius with €70 mln for a new production factory, and Belgian group Vandemoortele relocating its production site to the region.

The investments follow a good performance in 2013 when the city attracted 77 new projects, creating 1,859 direct jobs. '2014 was a successful pivotal year in which Lyon strengthened its international position,' Aderly, the economic development agency of the Lyon metropolitan area, said in a press release. 'Considering the significant drop in international investment across France, these numbers are especially encouraging.'

Over half the companies transferring to the region were focused on Lyon's two strategic sectors: life sciences and eco-technology. Twelve of the 80 new projects attracted in 2014 involve R&D centres and 11 organisations also have operations outside Greater Lyon.

The city is also gaining ground as a strategic international metropolis for Asian investors. A number of Chinese companies have set up operations in the city and a new Franco-Chinese institute has been inaugurated. In total, an average investment volume of €870 mln has been recorded over the last three years, Aderly said.

Lyon has the second-largest concentration of company headquarters in the country and the second-largest volume of tertiary real estate after Paris, with nearly 5.2 million m2 of office space, plus potential for industrial and logistics activities.

Since its creation in 1974, Aderly has supported the relocation of over 1,200 businesses, with 60% of the new firms coming from abroad.