French Commercial Sector Posts Strong Year

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...

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

*This page is provided for information purposes only and should not be construed as offering advice. Flex Profit Hub is not licensed to give financial advice and all information provided by Flex Profit Hub regarding real estate should never be treated as specific advice or regulations. This is standard practice with property investment companies as the purchase of property as an investment is not regulated by the UK or other Financial Services Authorities.