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Investment in French commercial property increases by 41%

During Q1-3 of 2010 there was €6.9bn worth of transactions in the French commercial real-estate investment market, a 41% increase in comparison with the same period in 2009 according to Cushman & Wakefield.

C&W stated that the French market has gained momentum since its low point in 2009 when total annual investment volume did not exceed €7.8bn.

Despite offices being the predominant asset type, retail assets have taken the advantage due to a wider range of potential buyers, greater available supply and stabilisation of yields.

There has been a total of €2.4bn invested so far in 2010, rising 86% by the end of Q3 compared to the corresponding period in 2009. Office investments rose 33% and industrial assets by 22%. With €3.9bn transacted since the beginning of the year, offices only accounted for 58% of market share compared with 67% in 2009.

Retail property assets are seen as a safer option and continue to attract risk-averse investors looking for secure investments. Retail accounted for a record-breaking high of 35% of all property investments in France during Q1-3 2010 and it’s gained a market share of 35% in 2010, compared with 24% in 2009 and an average of 10% between 1999 and 2008. This trend is even more marked in the provinces where retail accounts for 66% of all property investments.

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