The French commercial investment market saw turnover double in Q1 to nearly EUR 1.8 bn compared to EUR 0.9 bn in the year-earlier period, accordingto the latest research by real estate advisor Savills.
The French commercial investment market saw turnover double in Q1 to nearly EUR 1.8 bn compared to EUR 0.9 bn in the year-earlier period, accordingto the latest research by real estate advisor Savills.
French investors and German Funds continue to dominate the market, with the exception of the sale of the 35,000 m2 HSBC headquarters located at 103 Avenue Champs Elysées to a Qatari investor for EUR 425 mln - the biggest deal of the quarter. Savills also noted a 12% increase in spending by domestic private investors over the period, and said the trend would likely continue into 2010.
A number of major retail deals signed during Q1 boosted the share of retail investment to over 40% of the total figure against 12% in Q1 2009. For full-year 2009, retail investment accounted for 17% of the total.
Pascal Rupert, director of investment at Savills Paris, said insurers, mutual funds and core pension funds are all actively seeking to acquire new buildings. He added that the strong demand would prompt some investors to consider speculative development, something they have not done for over two years now.
