International investors are set to target Paris as the search for good-quality well-let stock continues, according to Savills. The international real estate advisor reports a growth in investment activity in the French commercial market of 90% when comparing the first quarter of this year with the second , and an increase in international investor activity from 34% to 48% (of total investment deals) across these periods.
International investors are set to target Paris as the search for good-quality well-let stock continues, according to Savills. The international real estate advisor reports a growth in investment activity in the French commercial market of 90% when comparing the first quarter of this year with the second , and an increase in international investor activity from 34% to 48% (of total investment deals) across these periods.
In terms of buyers, Savills has seen an increase in German investor share from 14% of the market in 2008 to 20% of the market in H109 and predicts that there will be further demand from a wider international base.
Giles Wilcox, head of Savills European cross border investment, said: 'Nine out of 10 investors we meet cite France as a top three target country, alongside UK and Germany. So far activity has been largely focused on the UK this year, and investors will remain active there but as competition hots up we expect increased activity in France.
'Whilst we have not seen distressed sales to the extent that was anticipated, there is strong demand from clients with substantial equity asking us to identify opportunities where owners are under pressure from banks or specialist asset management is required by the banks. In addition to offices there is strong interest for the retail sector which has been far more resilient than the UK.'
