Tag Archive | "France"

International Investors Look to Paris Real Estate Market

The residential real estate market is becoming a popular target for investment among foreign buyers. The city has established a reputation as a safe haven for investment, and investors across the world are taking advantage.

 

It should not come as a surprise that in the past year, buyers from the United Kingdom, Italy, and Germany made up the majority of property buyers in Paris. However, analysts are taking note of the increases in interest seen in buyers from other parts of the world, specifically the Middle East, Russia, and other Asian countries.

 

While the residential real estate market in Paris did take a small dip towards the end of 2011, the city’s property market posted strong results during the first half of the year. Many economists believe that those strong results will pick back up again in 2012, making it a clear choice for investment by international buyers.

 

There are many reasons as to why Paris is being viewed as a safe haven. No longer are international investors looking for a quick turnaround on their money. Rather than look for short-term capital, they are instead looking for wealth preservation. The prime residential real estate market in Paris offers just that. Prime properties are typically less expensive in Paris than in London, and they typically tend to retain, or gradually grow in value.

 

In addition to being a safe investment option, Paris is also attractive to international buyers in that it offers them the opportunity to take advantage of the beauty that the city has to offer whenever they’d like.

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French Property Market Will Struggle in 2012

In what is not exactly welcome news for the global real estate market, one of France’s biggest banks has predicted that the nation’s housing market will experience a sizeable decline in the next year. The bank, Credit Agricole, believes that sales will drop nearly ten percent, and prices could fall by as much as six percent in 2012.

The current residential real estate market has had mixed results thus far this year. Prime real estate properties in both Paris, and also the Southern parts of France have performed exceedingly well. However, other areas of the country have seen their real estate markets remain stagnant, or even falter a bit. As a whole, the number of residential real estate transactions is expected to be near its lowest level ever in 2011, and will likely be worse in 2012.

With that said, the looming European debt crisis has already started to negatively affect the country. It will likely grow worse in 2012, and thus, the real estate market, even in the prime areas such as Paris, is expected to experience a decrease in performance.

Real estate analysts believe that one of the biggest factors in the overall health of the residential real estate market in France will be that of pricing. If pricing on properties is adjusted to an affordable level, it is likely that there will not be such a massive drop in the volume of sales. If prices are not adjusted to realistic levels, sales could essentially come to an overall halt, thus grossly hurting the very fragile property market.

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Norwegian Wealth Fund Interested In French Properties

Norwegian Wealth Fund Interested In French Properties

Norwegian’s have always been interested in real estate deals that involve French properties. This can be demonstrated by the deal of Norwegian Wealth Fund, a $584 billion Assets Company, which has finalized a deal this week making it the second major property deal in Europe within a year’s time. The deal includes the buying of stakes in seven French office properties which has been valued at 1.4 billion euros or $2.04 billiion.

A payment of 702.5 million euros for obtaining a 50% share in the french real estate which Includes properties in the Champs-Elysees city and in the emerging business city located at the edge of Paris, La Defense, by the Norges Bank Investment Management of Norway.

Ownership of the real estate property will be managed by a fund by AXA Real Estate Investment Managers which is the support of the property management of AXA SA, a French insurer. Norges bank and AXA have came upto a deal in which a 50-50 joint venture will be formed in which the real estate properties will be managed by AXA and both the parties will make a joint investment in French office properties in the future. The chief executive of AXA real Estate firms declared that this venture with the Norges bank will provide opportunities to invest and diversify capitals in the European real estate sector, especially in the German and UK markets.

This Norway-based fund made its debut in the market last year in November by obtaining a 25% share for an amount 448 million pounds ($719 million) in the UK Crown Estate’s Regent Street real estate properties in the city of London.

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