Paris overtakes London for investment in 2011: CBRE

Paris has overtaken London as Europe’s biggest real estate investment market, according to new figures released by property adviser CBRE on Tuesday. Investment in the French capital reached EUR 7.9 bn in the second half of 2011, up from the EUR 3.6 bn recorded in the first half of the year.

The surge in investment activity in Paris was most significant in the office sector and included both large portfolio and single-asset deals. The French capital saw a 30.7% year-on-year increase in turnover during the second half of 2011 and the increase means Paris now accounts for more than 14% of the European property investment market.

The CBRE survey of European capital markets also shows a recovery in the Moscow market. The second half of 2011 saw Moscow overtake Berlin to become the sixth-largest European investment market. The Russian capital saw total investment of EUR 2.6 bn during the second half of 2011 - up from the EUR 1.9 bn recorded during the first six months of the year.

CBRE believes investment in Moscow will continue to grow. 'Domestic investors account for the majority of commercial real estate investment in Russia. Once foreign investors recover their appetite for Russia, we can expect Russia to rise further, not least as it is one of Europe’s three megapolises,’ said Christopher Peters, CBRE research director for Russia.