French Property Investment Market doubles in Q22nd October 2012
Research from Paris-based La Francaise Asset Management has shown that the property investment market in France increased in Q2 2012. €3.8bn was invested during Q2 versus €1.8bn in Q1 representing a marked increase.
The research showed that domestic investors (insurance companies, pension funds and SCPIs) preferred medium-size assets in Ile-de-France and elsewhere. After a long period of inactivity, these players are expected to boost activity.
However, the firm said the market is moving at two different speeds, and activity has mainly focused on large transactions by international investors. For the first time since 2007, foreigners accounted for more than 50% of investment flows.
Nicholas Leach, Partner at Athena Advisors commented: “French real estate offers performance other assets cannot. The market is highly regulated and the country is still experiencing a severe housing shortage. These basic supply and demand fundamentals create a resiliency against wider European economic issues and therefore provide a stable environment for foreign institutional investors.”