As expected, Paris remains the focal point of the accelerated activity in 2014. Following an overall investment in the commercial real estate sector of close to EUR15bn in 2013, the capital's office sector alone receiving almost EUR8.2bn in H114 - an 85% upturn to last year. Similarly, the Parisian retail sector recovered from its low 2013 levels as well, with 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. This comes despite weakening household consumption, whose impact on the retail market is yet to be seen.
For Marseille and Nice, few changes have been observed, with both cities producing a stable supply demand balance, yet subdued activities. The office market in Marseille continues to provide greater stability than the capital with regard to rental rates, particularly at the lower end of the market. Similar stability could be observed in Nice. The industrial real estate sector in general as shown little activity in all three monitored cities.
Against the backdrop of the positive pick-up in the commercial real estate market in 2014, we continue our positive long-term outlook. This is due to the highly developed commercial real estate sector as a whole, as well as future opportunities such as those in the hospitality sector arising through the EURO 2016 in France and general robust growth in tourism which is likely to support demand for retail space. With...
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.
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- 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 Rankings
BMI's Real Estate Business Environment Rankings provide a country-comparative Risk-Reward Rankings index aimed at investors (real estate vendors, construction companies and financial investors) in the regional real estate market.
The rankings 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.
Although overall 2013 was a bad year for the commercial real estate sector in France, signs of recovery were evident in H213, and this upswing has carried over into 2014. This can be seen in the decisive recovery in both leasing activity and investment levels, reaching post-crisis highs in the office segment, together with the sustained growth in retail properties. The continuing weak performance of the French economy remains a burden for the industrial real estate sector, which drags behind the other two sectors.