The French residential investment market may hit a new record in 2021 after a string of major sales mandates were awarded earlier this year.
Broker JLL said that it is currently overseeing the disposal of over €3 bn worth of so-called 'Living' assets in France which are drawing interest from both local and international investors.
‘While the sector continues to be in strong demand, it no longer suffers from a lack of available product for sale. We are now seeing that there is a lot of stock being marketed and the market is getting extremely liquid,’ commented Stephan Von Barczy, head of the French Capital Markets Group at JLL.
The largest live sales mandate is currently the spin-off of a French government body which owns some €2.5 bn of residential units across the country. If successful, that alone would represent half of the total volume of housing assets transacted in the entire of last year.
A few other sizable portfolios are also being prepped for sale. JLL for instance is selling a €170 mln portfolio of 20 assets in Ile-de-France on behalf of a corporate firm as well as three senior housing units in the Paris region and on the Normandy coast for €90 mln and two residential buildings in the 11th and 20th district of the capital on behalf of a French pension fund. The advisor declined to provide further details relating to the sale.
The French residential market saw its strongest year ever last year, when roughly €5.5 bn of housing assets changed hands, a 30% increase on the previous year’s volume.
