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Inside the Market / Market Stats

Investors: Residential Real Estate Prices Will Increase or Remain Stable

Ernst & Young Economic Outlook Real Estate Market 2012

Ernst & Young released a study this month surveying a significant grouping of active French real estate investors.  According to the report, 77% of investors surveyed believe that France will be an attractive investment market in 2012.

86% of investors surveyed by Ernst & Young believe that prices in the French residential real estate market will either increase or remain stable, split almost evenly between the two, compared to 14% who believe prices will drop.

Also included in their report was a list of key findings for 2012:

  • 77% of participants consider France to be an attractive territory for real estate investment.
  • The capital markets and transactions are judged to be relatively optimistic.
  • The prices of well-situated properties could increase for offices and hotels.  The prices of commercial and residential real estate properties should remain stable.
  • The principal sellers are expected to be: real estate agencies/SCPI/SIIC, banks and lenders specializing in residential real estate.
  • The principal buyers are expected to be: residential real estate firms, open funds, and banks and insurance companies.
  • The interest of investors will primarily rest on office space and commercial real estate.
  • Preferred Regions: The center of Paris (office space), the area around Paris (commercial real estate), Nantes (residential), and Toulouse (residential).
  • The disparity of pricing between buyers and sellers constitutes the largest obstacle in the development of real estate transactions.

 

Ernst & Young Economic Outlook Real Estate Market 2012
Ernst & Young Economic Outlook Real Estate Market 2012

To read the full Ernst & Young report in French, click here: Barometre_du_marche_Immo_012012

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