French Parliament Adopts Creation of State Land Company, Making Ministries Tenants
On July 21, 2026, the French Parliament definitively adopted a bill creating a land company to manage state real estate, forcing ministries and other administrations to become tenants rather than owners of their buildings. The reform, authored by former minister Thomas Cazenave, aims to rationalize the public property portfolio, achieve savings, and finance the ecological transition. The state owns nearly 96 million square meters of built space and 42,000 square kilometers of undeveloped land, valued at around 74 billion euros. The goal is to reduce the portfolio by 25% by 2032. Rents charged to ministries will make occupancy costs visible and encourage space reduction or pooling. The bill passed the National Assembly with 276 votes in favor and 86 against, supported by parties from the National Rally to the Socialist Party. Left-wing groups like La France Insoumise opposed it, warning of market logic harming public services. The government cites a Court of Auditors estimate of 140-150 billion euros needed for investment by 2050.
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