Catella sees rising competition for French property

Catella, the financial group listed on Nasdaq in Stockholm, points to increasing competition in the French property market as one of the trends outlined in its latest report on the local property market.

The report – Property Market Trends, France Spring 2016 – suggests a “much more dynamic” market in the second half of 2015, with transaction volumes as measured by square metres transacted.

Catella said that the volumes were the largest since 2008. Regarding the core Ile-de-France market, the report suggests that vacancy rates for the largest properties have started to decline, while rents have remained stable.

“The investment market has experienced an exceptional second half of the year following its lacklustre first six months. €26.2bn have been invested in the non-residential real estate market in France, up 2.5% over 2014. This result was only surpassed in 2006 and 2007. Despite this similarity, the two markets have followed very different trajectories in the past two years. The investment market continues to benefit greatly from the very high volume of liquidity available for properties, coupled with the relatively limited supply of same. This has generated, with increasing competition between players, higher values and severely reduced yields.”

The transactions have been focused on the €100m-€300m range, with a decline seen through 2015 in transactions valued at more than €500m. Warehouses were the strongest growing product last year, Catella said.

Catella’s report is available at


Jonathan Boyd
Editorial Director of Open Door Media Publishing Ltd, and Editor of InvestmentEurope. Jonathan has over two decades of media experience in Japan, Australia, Canada and the UK. Over the past 17 years he has been based in London writing about funds and investments. From editing the newsletter of the Swedish Chamber of Commerce in Japan in the 1990s he now focuses on Nordic markets for InvestmentEurope. Jonathan was awarded Editor of the Year at the Professional Publishers Association (PPA) Independent Publisher Awards 2017. Shortlisted for the same in 2016, he was also shortlisted in 2017 and 2015 for the broader PPA Awards category Editor of the Year (Business Media).

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