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France’s real estate market experiences dynamic growth

Deutsche Hypo study reveals sustainable opportunities for the future – also thanks to “Grand Paris”

The French real estate market as a whole is profiting from the country’s economic recovery and can significantly increase its appeal. Dynamic growth is reflected by high demand for premium commercial properties, above all in the Île-de-France region, but also in regional real estate markets including Lyon, Lille and Marseille. That is the conclusion of a Deutsche Hypo study published today. The study also highlights the importance of Europe’s largest infrastructure project, “Grand Paris”, for Paris’s real estate market, along with the resulting opportunities.

France’s residential real estate market, in particular, is on a course of growth. That is because favourable financing conditions have created strong interest in buying property. The hotel real estate market also recovered in 2017, following the drop in visitor numbers due to the terrorist attacks in 2015 and 2016. However, a growing shortage of space in the centre of Paris has led to some tension in the market for office real estate. Pressure on high-end rents has resulted in increasing investor focus on regional markets. Meanwhile, the French logistics real estate market had a record year in 2017. The study reveals that the main driver of that development was the growth of online retail, which has also created significant pressure for change in the shop retail segment.

“Paris is an attractive, liquid market and, along with Berlin and London, is one of the top locations for investment in Europe,” explains Sabine Barthauer, Member of the Board of Managing Directors of Deutsche Hypo. “The ‘Grand Paris’ infrastructure project will stimulate activity on Paris’ real estate market and create diverse new opportunities for investment, including by international investors. We expect the dynamic growth of the French real estate market to continue,” says Barthauer.


The full study can be downloaded here.