“The French market lost a little of its appeal for cross-border investors during H1 due to a lack of genuine opportunities and the general sluggishness of the economy.” Marie-Josée Lopes, Head of Research Savills.
€6.1 billion were invested in France in H1 2013, which represents a fall of 22% compared to H1 2012. Increased selectivity on the part of investors and the overall sluggishness of the economy have diminished the competitiveness of the French market.
€4.1 billion were invested in office properties (down 19% on the same period in 2012). Although affected by the reduced investment volumes, the office sector remains at the forefront with 67% of the total sums invested, followed by retail units (17%), serviced properties (10%) and industrial premises (5%).
The market remained very endogenous at the start of 2013, with French investors continuing to dominate with 69% of the total investment volume. This can be explained by the temporary absence of non-European, cross-border investors.
Prime yields remain stable and could reach 4% for office properties, 4.5% for high-street retail units and 7.75% for industrial premises come the end of H1 2013.
(This article features excerpts from the full report – please download it here)