France Real Estate Report Q3 2011
Includes 3 FREE quarterly updates
Numerous reports in Q211 attested to the health of France’s real estate sector. Foreign and domestic demand for real estate opportunities in France is improving driven by the country's economic recovery after the financial crisis.
Total commercial real estate investment in France soared by 41% to EUR6.9bn over the first nine months of 2010, as the retail sub-sector led investor demand over the period. Although the office sub-sector still dominates the commercial investment market, its overall share has declined significantly as retail investment strengthens. Investment in office assets stood at EUR3.9bn over the first nine months of 2010, representing a 58% market share that is down on the 67% seen over 2009.
Our in-country sources reported that supply of new real estate has been kept in line with demand due to the attention of real estate developers over the previous two years. As a result yields have remained remarkably stable. We believe that this points to strength of the French commercial real estate sector, which – perhaps to a greater extent than its peers in other countries in Western Europe – is closely integrated with (global) financial markets.
Market liquidity and efficiency is due to investment through pooled vehicles such as listed Real Estate Investment Trusts (which may well be domiciled outside France) and unlisted property funds, as well as the large pools of organised savings within the country (such as the enormous French life insurance companies).
Numerous reports in Q211 attested to the health of France’s real estate sector. Foreign and domestic demand for real estate opportunities in France is improving driven by the country's economic recovery after the financial crisis.
Total commercial real estate investment in France soared by 41% to EUR6.9bn over the first nine months of 2010, as the retail sub-sector led investor demand over the period. Although the office sub-sector still dominates the commercial investment market, its overall share has declined significantly as retail investment strengthens. Investment in office assets stood at EUR3.9bn over the first nine months of 2010, representing a 58% market share that is down on the 67% seen over 2009.
Our in-country sources reported that supply of new real estate has been kept in line with demand due to the attention of real estate developers over the previous two years. As a result yields have remained remarkably stable. We believe that this points to strength of the French commercial real estate sector, which – perhaps to a greater extent than its peers in other countries in Western Europe – is closely integrated with (global) financial markets.
Market liquidity and efficiency is due to investment through pooled vehicles such as listed Real Estate Investment Trusts (which may well be domiciled outside France) and unlisted property funds, as well as the large pools of organised savings within the country (such as the enormous French life insurance companies).
Contents
Executive SummarySWOT Analysis
France Real Estate/Construction SWOT
France Economic SWOT
France Business Environment SWOT
Real Estate Market Overview
Table: Historic Rents – 2009 And 2010 (m2/month, EUR)
Table: Net Yields, 2010 And 2011 (%)
Table: Terms Of Rental Contract/Lease, Mid-2010
Table: Available And Vacant Space, Mid-2010 (m2)
Industry Forecast Scenario
Table: Real Estate Markets – Rentals, 2010-2012 (m²/month, EUR)
Table: Forecast Yield, 2008-2015 (%)
Construction Overview
Table: France Construction And Infrastructure Industry Data, 2007-2015
Table: France Construction And Infrastructure Industry Data, 2012-2020
Macroeconomic Outlook
Table: France – Economic Activity, 2008-2015
Business Environment
Real Estate/Construction Business Environment Rating
Table: Europe Real Estate/Construction Business Environment Rating
France’s RECBER
France’s Business Environment
Table: BMI Business And Operation Risk Ratings
Table: BMI Legal Framework Rating
Table: Labour Force Quality
Table: Trade And Investment Ratings
Table: Top Export Destinations, 2002-2009 (US$mn)
Competitive Landscape
Company Monitor
Bouygues Construction
Eiffage
Gecina SA
Klépierre
Lafarge
Unibail-Rodamco
VINCI
BMI Methodology
How We Generate Our Industry Forecasts
Construction Industry
Bank Lending
Real Estate/Construction Business Environment Rating
Table: Weighting Of Indicators
Project Finance Ratings Indicators
Table: Design And Construction Phase
Table: Commissioning And Operating Phase – Commercial Construction
Table: Commissioning And Operating Phase – Energy And Utilities
Table: Commissioning And Operating Phase – Transport
Sources 48 Skip to top