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Investor Guide to Europe 2014
france is the second largest market in Europe
after the uK, and is one of the top three markets
in Europe for investment activity, with around EuR
16bn invested per year on average over the last ten
years.
The investment market is focussed on the Greater Paris
Region and accounts for three quarters of the total investment
volume. But investors, finding the Greater Paris market too
competitive and relatively expensive, are also active in the
regional markets, with an average of EUR 3.5bn invested per
year.
French investors dominate the market averaging over half
of investment each year, though their share was higher in
2013. German and north American investors are also active,
typically deploying over EUR1bn per annum, with Uk investors
slightly less.
The main players are the investments funds, followed by the
quoted companies. France has an active REIT market, which
was introduced at the end of 2003. Since 2009, the French
investment market has been dominated by equity players,
notably local SCPI’s and oPCI’s as well as German open-ended
funds.
Thanks to the size of its office market (the biggest one in
Europe) the French market is dominated by office acquisitions,
with a long term average share of 69% of investments. Retail
assets have seen their market share increase since 2009,
representing 22% of commitments on average each year. Debt
is relatively easy to secure from traditional banks, as well as a
growing number of institutions and other debt funds.
Market sizing
France
Europe
Invested stock*
(Total stock)
EUR 535bn
(EUR 900bn)
EUR 3,380bn
(EUR 8,150bn)
liquidity ratio*
(10y average)
3.0%
(4.0%)
4.0%
(4.5%)
2013 volumes
(10y average)
EUR 17bn
(EUR 16bn)
EUR 139bn
(EUR 135bn)
Investment activity by asset type, 2013
Source : DTZ Research
Investment activity by source of capital, 2013
Source : DTZ Research
Market pricing – Paris (Q4 2013)
office
(CBD)
Retail
(City)
Industrial
(Paris Region)
Current Yield 4.00% 4.00% 7.35%
Min/Max
(10y)
3.75-6.00% 4.00-6.00% 5.90-8.50%
Yield
definition
net initial yield
Source : DTZ Research
fRanCE
* 2012 figures
