The latest IPD France Annual Property Index
has revealed that the commercial real estate sector enjoyed a noticeable recovery in 2010 following two years of falls and inactivity.
Capital values in the country grew by four per cent over the year leading to a total return for investors of ten per cent, the index revealed. It followed a 12.7 per cent decline in values between 2008 and 2009.
Despite this, IPD noted that the annualised total returns over a three-year period remained positive, at 2.4 per cent.
"After two years of negative movements, the real estate sector in France has posted a strong recovery in values for 2010, following the trends seen in other European countries," said Stephanie Galiegue, managing director of IPD France and Southern Europe.
However, Ms Galiegue noted that the recovery remains very "location specific", with investors tending to show a preference towards secure assets
that are able to offer them a stable income in a central and prime area.
- Thursday 14 April 2011