Commercial property investment in Paris increases by 10% in the 1st quarter of 2015

increase of commercial real estate investment - 56Paris real estate

Recent figures show that total investment in commercial property in Paris topped €4.3 billion in the first quarter of 2015. This is an increase of 10% compared to the same period in 2014.

During the first quarter of 2014, office properties made up 73% of total commercial investment in Paris. In the first quarter of 2015, this rose to 86%. In 2015, two thirds of transactions have been in the €100 million to €500 million range.

The biggest deal so far this year has been Abu Dhabi Investment Authority’s acquisition of the new Ecowest office complex just outside Paris for €477 million.

Improved economic and financial prospects in the Eurozone are promoting the increase in activity. Paris is a global business hub, leading investors to focus on traditional portfolio assets, such as office buildings.

Demand from international investors remained strong at 55% of market activity, although this is down from 67% in the first quarter of 2014. Investors from the U.S. and the Middle East accounted for 13% and 11% of the market respectively.

Favorable currency exchange rates and low interest rates are expected to continue throughout the year, which will give a further boost to foreign investment in France. High volumes of transactions are predicted for the rest of the year.

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