Market Summary by Catella

The Market Summary by Catella (in collaboration with Monique Benisty of MBE Conseil) provides an overview of key trends in commercial real estate with an overview and analysis of quarterly investment and rental data.

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The Ile-de-France Office Rental Market - November 2020

The Paris region office market remains stagnant, with no sign of a rebound in Q3 2020.

Our vision of the office rental market
The view of Géraldine LATHAM

Take-up in Île-de-France region per quarter ​

Source: MBE Conseil according to Immostat

Take-up in Île-de-France region per quarter  ​

  • The decline in take-up that started at the beginning of the year continues.
     
  • Only 246,000 sq m were leased in Q3 (-58%/Q3 2019). This brings the take-up total to 913,200 sq m, i.e., -46% since the start of the year.

Take-up in Île-de-France

The French Investment Market - November 2020

Our vision of the French Investment Market
The view of Delphine Mutterer

The investment market continued to decline in Q3 2020. Average investments as well as the total number of transactions have both fallen. 

Amounts invested in the non-residential real estate market in France 

Source: MBE Conseil

Amounts invested in the non-residential real estate market in France 

  • After a major Q1 increase, the Covid-19 health crisis and corresponding lockdown have significantly slowed the investment market, which totalled €14.5 billion (before duty) over the first nine months of the year.
     
  • In addition to a mechanical slowdown attributable to lockdown, investment contraction can also be explained by increased risk aversion among all market players. Caution is the rule across all asset categories. Average investment volumes have fallen as debt is becoming increasingly rare and reasonably sized assets are considered more liquid for resale.
     
  • However, there are still large amounts of equity available, particularly among funds and insurance companies who consider the market adjustments as a new indicator.

AMOUNTS INVESTED IN THE NON-RESIDENTIAL PROPERTY MARKET IN FRANCE