Growth of French offices came to a halt in the first six months of the year showing returns of 2%, while the retail sector resisted at +4.2%, according to the IPD France Biannual Property Index.
Growth of French offices came to a halt in the first six months of the year showing returns of 2%, while the retail sector resisted at +4.2%, according to the IPD France Biannual Property Index.
Following the return of capital growth to positive terrority in the office sector in 2010, offices have been on a continuous downslide semester after semester. In the first six months to 30 June 2012, this trend continued with a very slight increase of registered values at +0.2% for overall products. As usual, retail stands out by far as the best performer due to rent and yield maintenance. Capital growth in the retail sector (+1.4%) was also higher than other categories.
The commercial property total return (overall products) came in slightly lower than the previous half year at 3.1%.
'The status quo for commercial capital values reflects a deterioration of the two following indicators: market rental values are stable and there is an increase in vacant office space. However, the rental market sends out a resistant signal with the preservation of rents passing,' said Stéphanie Galiègue, managing director, IPD France and Southern Europe.
The IPD biannual index is based on 1,160 commercial properties with a value of EUR 28.2 bn.
