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Inside the Market / Market Stats

Real estate transactions in France expected to total €26 billion in 2015

Total property investments for 2015 in France should reach 26 billion euros, according to a new report. This figure is expected to swell to 28 billion euros for the year 2016.

BNP Paribas Real Estate reports that real estate investment in France has already totaled 23 billion euros in the first 11 months of 2015. An additional 3 billion are expected for December alone, bringing the yearly total of transactions to an impressive 26 billion euros.

Since the start of 2015, French companies — mainly insurance brokers, real estate investment trusts and open ended property funds, among others — are the majority investors, comprising 64% of sales volumes. Anglo-Saxon investments represent 15% — with 5% from the United Kingdom, 1% from Canada and 9% from the United States. The drop in oil prices has affected investors in the Arabian Peninsula, who now only comprise 5% of French real estate sales volumes. Investors from Asia maintain a significant presence representing 8%, with purchases mainly including shops and hotels.

Amounts invested in commercial property in the Île-de-France region specifically have increased by 28% over the course of this year, exceeding 12 billion euros. BNP Paribas Real Estate expects this figure to rise to 14 billion euros by the end of the year, a total way above the average of 10.5 billion.

Transactions exceeding 100 million euros account for over two thirds of all acquisitions, similarly to last year. Where hotels are concerned, volumes invested this year are 64% higher than in 2014 and total 3.6 billion euros. This is much higher than the average over five years of 1.7 billion.

CEO of BNP Paribas Real Estate Advisory Laurent Boucher anticipates that this positive economic trend will continue into next year: “For 2016 we expect an increase in investment volumes which should reach 28 billion euros. Indeed, several factors indicate higher volumes for next year, including economic growth, more job creation and increases in rental amounts.”

Photo credit: Wikipedia / Atoma

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