Around €16.8 bn of investment transactions was completed in France during 2012, marking an increase of 4.5% year-on-year, according to figures from Savills.
Around €16.8 bn of investment transactions was completed in France during 2012, marking an increase of 4.5% year-on-year, according to figures from Savills.
The figure is also above the 10-year average of €14.2 bn.
Savills attributed the unexpected rise primarily to the return of transactions above €100 mln and partly to an increase in the number of portfolio sales, from 14% to 36% year-on-year. The firm’s data records 46 deals of over €100 mln in 2012, against 40 in 2011.
'2012 was a surprisingly good year for the French investment market,' said Boris Cappelle, head of investment at Savills France. 'This is mostly a result of ongoing activity from Qatari buyers interested in French trophy assets and portfolios. These portfolios include prime assets in all sectors located both in Ile-de-France and across the country.'
French offices continue to dominate activity, accounting for 62% of the total investment volume in 2012. Prime office yields are expected to remain at 4.25%, Savills said.
Retail, industrial and serviced properties accounted for 18%, 5% and 15% respectively.
The hotel sector in particular saw several key transactions, including the purchase of a portfolio of four French trophy hotels by Katara Hospitality for €750 mln, 52 avenue des Champs Elysées for €515 mln by Qatar Investment Authority and a portfolio of 167 French B&B hotels for €508 mln by Foncière des Murs.
'The French investment market ended 2012 looking healthy,' added Marie-Josée Lopes, head of research at Savills France. 'With ongoing interest from international investors and a number of significant deals already in the pipeline we expect the investment volume to reach between €6 to 8 bn by the end of H1 2013.'
