French investment climate deteriorates most: Union

The property investment climate in France deteriorated more than in the UK and Germany over the six months to end-2011, according to Union Investment's latest survey which polled 167 investors in Germany, France and the UK.

Union's investment climate index dropped in all three markets, but France recorded the steepest decline (-7.7 points to 60.2 points), followed by the UK (-5.3 points to 62.9 points) and Germany (-4.6 points to 67.7 points).

While the index reading for Germany continues to be the highest, it has passed its peak, according to Olaf Janssen, head of property research at Union Investment. 'Although momentum has slowed, the German property market remains in good shape. But Germany isn't an island - the turmoil caused by the euro crisis has contributed to many investors lowering their expectations and approaching the next 12 months with due caution.'

The investment climate index is based on four indicators, each with a 25% weighting: market structure, the general environment, location factors and expectations.