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With Emmanuel Macron in power, foreign investments into French office buildings are on the rise. Paris profits in particular. Photo: Feel good studio / Shutterstock. With Emmanuel Macron in power, foreign investments into French office buildings are on the rise. Paris profits in particular. Photo: Feel good studio / Shutterstock.

Paris profits from Macron effect 

Judi Seebus
Judi Seebus
Editor in Chief, PropertyEU

What a difference a year can make. The installation of Emmanuel Macron’s government in May 2017 has unleashed a wave of foreign investment in the French office sector as confidence in the youngest-ever president to reside in the Palais de l’Elysée continues to ride high. While the regions are also seeing greater interest, Paris in particular is profiting from the Macron effect, local real estate specialists told a recent investment briefing held by PropertyEU in the French capital.

‘It is no longer just words or rumours, I am here to tell you it is actually happening: Japanese capital is investing in Paris with a new vision of France as a hub to do business in the rest of Europe,’ said Andy Watson, partner, Europa Capital.

The Japanese are notoriously cautious about when and where to deploy their capital, but Europa Capital, which is backed by parent company Mitsubishi Estate, has just opened a fully-owned office in Paris headed by Watson to invest in core real estate, offices in particular.

‘A year ago it wouldn’t have happened, but a lot has happened in a year,’ Watson added. ‘We have seen a phenomenal amount of change in the last 12 months thanks to a genuinely pro-business Générale Continentale Investissements. The Grand Paris project will work, and it will consolidate the status of Paris as a major capital city. Already the office market is strong and in the last year prime rents have begun to increase in the CBD. This positive trend will then spread to other areas.’

 

 

Foreign investors challenge domestic players


The Japanese may be relative newcomers in Paris, but Asian investors overall are challenging the traditional dominance of French domestic investors in their home market, according to Alfred Fink, partner, Taylor Wessing France. ‘Acquisitions are picking up and more investors are coming from abroad: before 70% of transactions were done by French investors, now it has gone down to 46%,’ he said.  ‘There is no doubt that France is more attractive as an investment destination, because there is a new political management in place the like of which we have never seen before.’

Meanwhile local players like Covivio are adapting to the changing office market where the coworking trend started by WeWork has also taken root. Covivio’s answer to WeWork is Wellio, described as ‘pro-working spaces’ open to companies of all sizes as well as individual entrepreneurs and freelancers, with a goal to offer 70,000 m2 of space by 2022. ‘We recognise that the balance of power has shifted to the tenant, who now demands more services and more flexibility,’ Olivier Estève, deputy CEO Covivio, told the briefing. ‘This is why we are launching our own offer of flexible offices.’

As one of Europe’s major property markets, France presents lucrative business and investment opportunities. At EXPO REAL 2018, you will find the French property sector once again at the joint stand “Club France” (click here for information in French). Have a look at our exhibitors list and conference program to prepare your trip in advance.

Club France at EXPO REAL

The Club  France pavilion – Hall C2, Stand 214 – presents a broad cross section of the French real estate sector, key players involved in the Real Estate life cycle. Developers and investors, economic regions and cities, brokers and architects, property management and consulting firms will showcase their projects.

 

A Global City and a promising South East

In 2017 the transaction volume for corporate real estate investment in France topped

26 billion euros, mostly in office property, but also in retail, hospitality, logistics and industrial property. The Paris area is grasping the lion share: ¾, with Paris La Defense, the first business district of continental Europe, acting as a powerful magnet.

The growth of the Nice Region is noteworthy due to the dramatic growth of Sophia Antipolis attracting the big names from the whole business world.

 

One of the highlights is the “Club France/Primonial REIM Conference” on October 9. Experts will discuss the Healthcare and senior housing real estate across Europe.

 

In 2018, the real estate players present within the “Club France” are:

Aden Immo,

Axel Schoenert Architectes,

Covivio,

Eiffage Immobilier,

EOL,

L’Etoile Properties,

Macogep,

Nexity (Office property),

Palladium Group,

Paris La Défense

PERIAL Asset Management,

Primonial REIM,

Sofidy SA,

Team Cote d’Azur – representing the cities of Nice and Sophia-Antipolis –

Treize Cent Treize,

Vinci Immobilier.

 

Club France highlights:

 

Club France Conference by Primonial REIM.

“Healthcare and senior housing real estate”.

October 9 – from 15:00 to 15:45 – Discussion & Networking Forum – Hall A1.

 

Club France Cocktail.

The opportunity to enjoy French savoir-vivre and make valuable contacts. Hall C2 – Stand 214

October 9 – from 17:00 to 19:00 – Club France Booth – Stand 214 – Hall C2.

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