After a turbulent 2013, France's commercial real estate sector has shown signs of a return to health in 2014 with noticeable recovery in both leasing activity and investment levels being seen across much of the market.
As was expected, Paris has been the focus of this up-tick in activity. According to reports by Jones Lang LaSalle, investments in the Capital's office segment totalled EUR3bn in Q114, representing a return to 2007 levels. Demand for retail space in the city is also recovering, mirroring a steady improvement in consumer spending. Our in-country sources reporting strong growth at the upper end of the market in particular, including prime locations in the centre of the city.
Longer-term, we expect robust growth in tourist numbers to drive demand for retail space while the hospitality sector also looks set for strong long-term growth. In the industrial sector, a steady improvement over the past few months supports our view that the industrial segment will continue to stabilise over the coming months.
While we maintain a largely positive outlook for commercial real estate over the quarter, we caution that the sector remains vulnerable to external shocks stemming from the local and wider European economy. High unemployment and a fragile export sector will continue to weigh on the minds of the majority of business owners, meaning the momentum is likely to remain with tenants rather than landlords for the foreseeable future.
- According to Jones Lang LaSalle, the office investment market reached EUR3bn in Q114, the highest volume recorded since 2007. Seven sales with a value of EUR100mn or more were recorded during the quarter.
- Allianz Real Estate has acquired the Arc de Seine building...
The France Real Estate Report features Business Monitor International (BMI)'s market assessment and independent forecasts of major construction projects in the residential and commercial markets, plus rental prices and yields in major cities. The report critically analyses the prospects for real estate within the broader economic and financial context - both domestic and global - via our econometrically-modelled and clearly explained banking and economic forecasts and follows this through to evaluate the implications for REITs.
BMI's France Real Estate Report provides industry professionals and strategists, sector analysts, business investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the real estate industry in France.Key Benefits
CoverageBMI Industry View
- Benchmark BMI's independent real estate industry forecasts for France to test other views - a key input for successful budgeting and strategic business planning in the French real estate market.
- Target business opportunities and risks in France through our reviews of latest industry trends, regulatory changes and major deals, projects and investments.
- Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).
Summary of BMI's key industry forecasts, views and trend analysis covering real estate and construction, regulatory changes, major investments and projects and significant national and multinational company developments.Industry SWOT Analysis
Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the real estate sector and within the broader political, financial, economic and business environment.Market Overview
Overview of the real estate sector, including analysis of existing/planned real estate developments and emerging industry trends in the office, industrial and commercial sectors.Market Analysis
Features detailed city-level data and analysis on rental prices, yields, contract terms and real estate availability with separate chapters covering the office, retail and industrial sub-sectors.Industry Forecast Scenario
Historical data series (2010-2012) and forecasts to end-2018 for the domestic real estate industry and for the local and global finance industry. Indicators include:
Real Estate: Office, retail and industrial real estate yields for all major cities (%); short-term forecasts on minimum and maximum real estate rental prices by sub-sector (US$ per square metre, and local currency per square metre)
Construction: Industry value (US$bn); contribution to GDP (%); employment (`000); real growth (%)
Economy: Economic growth (%); nominal GDP (US$bn); unemployment (%); interest rates (%); exchange rate (against US$)Business Environment Ratings
BMI's Real Estate Business Environment Ratings provide a country-comparative Risk-Reward Ratings index aimed at investors (real estate vendors, construction companies and financial investors) in the regional real estate market.
The ratings methodology makes sophisticated use of over 40 industry, economic and demographic data points.Company Profiles
Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI's industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate Company SWOT analyses.
The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.
With a focus on the country's principal cities of Paris, Marseille and Nice, the BMI Q314 France Real Estate report covers rental market performance in terms of rates and yields across the commercial office, retail and industrial sectors.