Paris surpasses London in the preferences of real estate investors. While the City is embroiled in a Brexit that seems, paradoxically, to be without a way out, the French capital is grinding investment on investments. According to the real estate services company Cbre, Paris for the first time outperforms the nearby English capital. In the third quarter of 2019, in fact, the growth of investments in Paris was 44% compared to a year earlier (+ 16% from the beginning of the year).
Also according to the latest edition of the research Emerging Trends published by Pwc Paris is at the top of the list of investors’ preferences for 2020, taking the place of Lisbon. Second in the standings remains Berlin, third Frankfurt and only in fourth place we find London.
The lion’s share is made by Asian investors, who have always been very active in London, who in Paris in the first nine months represented 17.5% of the capital. Korean investors have carried out operations such as the acquisition of the Majunga and Eqho towers in La Défense, the Lumière assets, also in Paris, and Crystal Park in Neuilly-sur-Seine. At the end of the year, the Koreans will have purchased over four billion euros of assets in the service sector in France.
In the Ile de France, take-up in the office segment totaled 543,400 square meters in the third quarter (+ 8% year on year). The volume of transactions involved 1.7 million square meters. London, on the other hand, is losing ground, victim of the uncertainties linked to the Brexit negotiations. Volumes fell by 29% in the third quarter. Investments in offices in central London fell by three billion euros compared to 2018 (source Avison Young).
On the residential front, Paris is among the four risky cities according to the index compiled by UBS last October, together with Munich, Amsterdam and Frankfurt.