Paris Ranked Best in 2012 Urban Land Institute Investor Survey for Real Estate Investment in Europe
Posted on May 21, 2012 by Paris Property Group
Paris is the sixth-most-favoured market overall, and its retail, office, and hotel sectors are highly rated by investors looking for acquisitions. Investors reported that Paris and London offered the best opportunities in 2012. “The market has scale, liquidity, a reasonably protected legal framework, and a diverse range of tenants.”
Although it was frequently ranked with London as the region’s top market, Paris was considered as more attractive by some because it is less dependent on the financial sector. “When I compare London to Paris, the first thing is that London is stretched and the market is more volatile. Real estate cycles are more pronounced in the U.K. capital.”
Away from the main sectors, investors suggest converting older office buildings into residential was one opportunity, and hotels was a promising sector. “Paris’s luxury hotel segment has doubled in capacity during the last eight years; this additional supply has been well absorbed, and I think that demand from tourism in the future will grow at a faster pace than supply.”
The market is so highly regarded that interviewees are reporting seeing yield compression in recent months. “Real estate is like gold; it allows investors to protect their invested capital. I have seen several private wealthy families investing in core-plus property in the city at yields below 4 percent.”
For the full report.