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France Real Estate Report Q3 2011
Business Monitor International, June 2011, Pages: 48
Business Monitor International's France Real Estate Report provides industry professionals and strategists, corporate analysts, real estate associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on France's Real Estate industry.
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).
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