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 marketsummarybycatella.com/fr