The high level of French commercial real estate transparency ranks it in the global top five countries of the Global Real Estate Transparency Index.
France is the only country in continental Europe identified as ‘highly transparent’ in the study produced by JLL (Jones Lang LaSalle) and LaSalle Investment Management’s 2016 Global Real Estate Transparency Index (GRETI).
These top 10 highly transparent real estate markets attract 75% of all global investment.
JLL’s Global Real Estate Transparency Index, covering 109 markets worldwide, ties transparency to real estate investment, business activity and living standards.
Commercial Transparency in France Commended
The Anglosphere countries lead the transparency hierarchy. They account for six of the world’s ten ‘highly transparent’ markets. The United Kingdom, Australia, Canada and the United States hold the top positions.
France holds the 5th position globally, with an improvement in ‘Market Fundamentals’ and advances in the ‘Regulatory and Legal’ framework.
Europe is classed the most transparent region for real estate globally. It leads the top end of the global ranking with 20 of the 30 markets classified as ‘highly transparent’ or ‘transparent.’
Europe remains attractive for investors, particularly foreign capital, with over half of the total European capital flows during 2015 sourced from cross-border investors.
Solid Reasons to Invest in Paris Real Estate
The research shows that Paris, as France’s primary commercial investment area, is as sound an investment in commercial as in residential real estate.
Paris is the second most popular destination in Europe for international greenfield investments and third in the world after London and Shanghai.
Ernst & Young and JLL’s publication, Why invest in Paris? 2016, is a reference guide for foreign investors looking to move into the French real estate market. It is overwhelmingly positive about the enduring value of Paris real estate.
It states: « The Paris real estate market offers solid fundamentals to investors which allow them to plan long-term acquisitions: transparency, maturity, liquidity. »
It’s worth remembering that, with 53 million square meters, the Greater Paris Region has the largest real estate stock in Europe and the third largest in the world after Tokyo and New York, it says.
Rental activity is very strong with levels of take-up running at twice those seen in London. In terms of investment volumes, Paris is also highly active, it stresses. The city has been up on the top step of the podium of continental European cities for several years posting €18 billion in investments in 2014 and 2015.
Does French Residential Real Estate Follow Suit?
Residential buyers, on the other hand, do not have access to similar levels of transparency during the buying process. The absence of a multiple listing service does not simplify finding properties. Nor can buyers readily access the kind of pricing data available on websites such as Zillow.
At 56Paris Real Estate, we are here to help you navigate the opaque residential real estate market. If you’d like to find out more about investing in Paris commercial or residential real estate, you can contact us here.
Photo credit – Ramesh Thadani