Foreign investors returned to France

According to Savills, for the first time after the crisis the share of foreign investors on the French market exceeded the share of the French, amounting to 51 %. The highest activity was shown by the Americans and to a lesser extent the Germans.

In the first half of 2014 the volume of investments increased by 35 % compared to the same period in 2013. Deal more than 100 million euros was more than 75 %.

The share of local investors has dropped from 65 % in 2013 to 49 % in 2014. The percentage of French people and foreigners has changed mainly because of the Americans. Investment Fund from USA, Lone Star entered into one of the largest deals, buying the largest office building France Cœur Defense, and the overall percentage of Americans on the market amounted to 22 %.

As for Asian investors, in the first quarter they were almost invisible. Later, however, immigrants from Asia have intensified, and overall for the first half of their share of transactions on the French market amounted to 5 %.

Foreign investors are present in all segments of the French market. In the segment of more than 100 million euros they account for 60% of the capital invested, ranging from 20 to 100 million — 44 %.

“One of the trends of the market 2014 was the return of transactions worth over EUR 500 million, including three transactions, the amount of which exceeded 1 billion euros,”— says Marie-josée Lopes, head of Savills research.

Experts believe that if the French economy will grow at the expense of her to feed the real estate market, and the investment volume in 2014 could exceed 20 billion euros. For comparison, over the last 10 years the average volume of investment amounted to 16.2 billion euros per year.

Demand increased for all types of objects, especially for commercial premises and offices. Not remained aloof and apartments. According to notaries, the demand of foreigners for apartments in Paris reached its highest level in 15 years. In the II quarter of 2014 the share of foreign purchases made up 8.3 percent (the previous year the proportion was 7.8 %). Among foreign buyers of apartments in Paris is dominated by Italians (17 % of purchases) and Chinese (6.5 percent). Foreign investors are attracted by the declining prices. Since the peak third quarter 2012 housing in Paris fell by 3.7 %. As reported LaVieImmo, notaries say that in the first quarter of 2014 apartments in the capital sold for an average of 8 140 EUR/m2, in II quarter — for 8 EUR 120/m2, while in the second quarter is projected to be cheaper by up to 8 050 Euro/m2.

Yulia Kozhevnikova, Tranio.Ru