Real estate Paris: international investors are returning

According to the leading international consulting company Knight Frank, the commercial real estate market of France is becoming more and more foreign investors.

After a long lull caused by the financial crisis of 2008-2009, international buyers are returning to the commercial real estate market of Paris. “The share of foreign buyers in the total volume of investments, which before the economic crisis reached 70 %, fell down to about 45 %,— says one of the consultants real estate French branch of Knight Frank.— Now the market is gradually revived, and today the share of foreign funds invested in French commercial property, accounting for nearly 56 %. New players are coming from Asia and the Persian Gulf”.

So, the South Korean national pension service NPS is interested in the Paris real estate. It is the fifth largest pension Fund in the world, he previously won the tender for a large European shopping Sony Center in Berlin.

Traditionally active German investors. They are firmly established on the French market and constitute more than half of all foreign investors.

However, the criterion of nationality is becoming less relevant. “The buyer can act on its own behalf or on behalf of others, it can also invest indirectly, through one or more intermediary companies, which collect funds from different sources,” explains consultant Knight Frank.

Finally, with regard to the type of investors, the market is now dominated by institutional investors — insurance companies, pension and charitable funds offering more favourable conditions and higher profits than other organizations — even such a solid investment property Fund OPCI (Organisme de Placement Collectif en Immobilier).

Comments are closed.