Some EUR 13 bn was invested in French commercial property in 2008, less than half the EUR 28.5 bn registered the previous year, according to a report by property adviser Cushman & Wakefield. Describing 2008 as a 'breaking point' year, C&W said the swing in the market comes after four years of sustained growth. 'This relatively low figure, which is well below the average amount invested each year since 1998 (i.e. EUR 14.4 bn) results from the financial crisis,' C&W said. Large deals have been particularly affected by the shortage of credit. C&W said just 35% of the total volume of investments in 2008 came from transactions exceeding EUR 100 mln. A year before EUR 100 mln-plus deals accounted for 58% of the volume.
Some EUR 13 bn was invested in French commercial property in 2008, less than half the EUR 28.5 bn registered the previous year, according to a report by property adviser Cushman & Wakefield. Describing 2008 as a 'breaking point' year, C&W said the swing in the market comes after four years of sustained growth. 'This relatively low figure, which is well below the average amount invested each year since 1998 (i.e. EUR 14.4 bn) results from the financial crisis,' C&W said. Large deals have been particularly affected by the shortage of credit. C&W said just 35% of the total volume of investments in 2008 came from transactions exceeding EUR 100 mln. A year before EUR 100 mln-plus deals accounted for 58% of the volume.
The Ile-de-France market still accounts for the highest share of investments: the region accounted for 73% of investments in France in 2008, pretty much on par with the year before. Investment markets in the provinces made a promising start to the year but volumes were 'progressively affected and were barely spared in the end,' the report says.
Accounting for EUR 3.5 bn, their performance does, however, remain 'decent'. 'This is mainly due to the particular dynamism of several major cities such as Lyon and Toulouse for instance,' the property adviser added.
