Last update: january 2024
Key Takeaways from the Investment Real Estate Report - Q4 2023
Commercial property investment in France deteriorated sharply in 2023, with Q4 reaching just €2.62 billion, down 62% year-on-year. Over the year, commitments of €12 billion represented a fall of 56%. The persistent reduction in liquidity due to monetary tightening and worsening credit conditions had an impact on the market, with deals worth more than €100 million now accounting for just 31% of trading. International investors fell to an all-time low of 23%. The rebuilding of the property premium, linked to the fall in the OAT at the end of the year, could slow the rise in prime yields for well-centred Core assets, opening up opportunities for opportunistic investors in the face of social and environmental change. A gradual recovery in investment is likely in the second half of 2024.
