Informations Rapides · 6 January 2023 · n° 5

In 2021, leasing exceeded its pre-crisis level Annual financial lease survey - year 2021

In 2021, the total amount of investments financed by leasing amounted to 38.1 billion euros (€bn). It represented 1.5% of the Gross Domestic Product (GDP) or 6.1% of the gross fixed capital formation of the national economy. It was up by 15.0% over one year (+€5.0 billion) and stood 3.6% above its high point in 2019 (€36.7 billion).

All types of leasing bounced back in 2021. Business equipment leasing rose by 10.2% (i.e. a contribution to the global growth of +6.3 points). Household investments increased by 17.2% (i.e. a contribution of 4.8 points). Real estate leasing rebounded more strongly: +32.6% after -21.3% in 2020 (i.e a contribution of +3.8 points).

Equipment leasing rose by 10.2% in 2021 after -5.9% in 2020. It continues to be largely used for cars (55.5% in 2021), and machinery (27.7%). Investments in these two types of products were dynamic, they respectively rose by 13.8% and 8.6%. On the other hand, computer, electronic and optical products which had been more resilient to the crisis lost 19.7% of their financing.

In 2021, the increase in investment in equipment leasing (+10.2%) was mostly driven by three sectors of activity : trade businesses (contributing 2.4 points), administrative and support services, and construction (1.9 points each). Together, they account for almost 61% of the rebound in equipment leasing.

Most of the sectors retrieved their pre-crisis level, and some even recovered their dynamism after having diminished their investments in 2020. Agriculture and construction, the two sectors that had slowed down their investments in 2020 but had not reduced them retrieved their pre-crisis pace. On the other hand, businesses specializing in transport and warehousing were the exception in 2021. Although they have long been the main equipment leasing customers, this sector of activity did not rebound and investment remained relatively stable in 2021.

Real estate leasing rebounded in 2021 (+32,6% i.e. +€1.3 billion), being largely driven by investments in factories and warehouses (+45.2%). The financing of office buildings was also on the rise in 2021 (+48.5%), without getting back to its 2019 level. Investments dedicated to clinics and hospitals increased by 69.3%. In contrast, the recovery was much weaker for shops.

In 2021, real estate leasing rebounded in almost all sectors of activity after having fallen in 2020. Almost half (48.8%) of real estate leasing flows correspond to investments in the sector of real estate activities for the purpose of simple rentals. They rebounded strongly in 2021 and exceeded their 2019 level reaching €2.5 billion. In some other sectors investments also rebounded strongly in 2021, in particular manufacturing industry (74.2%) and accommodation and food services activities (+122.1%). Conversely, in the trade sector, real estate leasing decreased (-21.8%).

Business investments in equipment and real estate leasing were mainly located in Île-de-France (20.2% of the total in 2021) and to a lesser extent in Auvergne-Rhône-Alpes (12.2%). The financing shares of the other regions varied from 1.4% for Corsica to 8.9% for Hauts-de-France.

This ranking is reversed by relating these amounts to the GDP of each region. Companies invested in Corsica the equivalent of 3.3% of the island's GDP. In Auvergne-Rhône-Alpes and Île-de-France, investments in the form of leasing represented less than 1% of the GDP (0.9% and 0.6% respectively).