Country Report France Q3-2022
“It is already apparent that a quiet phase is coming.”

Dear readers,

“We are still facing a challenging market environment. The investment market has proved strong to date, growing by 34 % year on year to reach a total volume of € 19.7 billion in the first nine months of 2022. However, it is already apparent that a quiet phase is coming, since buyers and sellers are apart on the issue of pricing. Those who can afford to wait and see are doing so for now – the market is on hold. Meanwhile, the letting market continued its positive trend: 1.48 million square metres not only represent a 20 % increase compared to the previous year, but are also roughly equal to the 10-year average. City centre locations remain highly sought-after, with around a 50 % share of transactions. Activity was also on the rise in La Défense, which performed at 16 % above the 10-year average. Demand for office space will hopefully continue, as small and medium-sized businesses in particular are looking for premises. It remains to be seen how structural topics will develop in the coming months.”


Your Anne-Isabelle Carbonnières

Contact

Ms Anne-Isabelle Carbonnières
Managing Director France

Phone: +33 1 550 484 85
E-mail: Anne-Isabelle.Carbonnieres@Deutsche-Hypo.de

REECOX France posts lowest decline in Europe of 2.6 %

The REECOX France remains on a downward trend. After a slight increase in July (2.9 %), the French real estate index again recorded losses in August (1.9 %) and September (3.6 %). Compared with Q2, the overall decline in the third quarter amounted to 2.6 % – the lowest among the European countries. The index closed Q3 at 219.3 points.

All input variables down

Following the significant losses in Q2, the slide in the French equity markets in the third quarter was relatively moderate. France’s blue-chip index CAC 40 fell by 2.7 % as against the previous quarter to around 5,762 points. The modest decline was due to a positive performance in July (8.9 %) combined with a fall in both August and September. The real estate share index FTSE EPRA/NAREIT France began the third quarter with strong growth, rising by 14.1 %. However, the losses in August (8.2 %) and September (11.1 %) meant that the index also closed Q3 on a negative note, declining by 6.9 % to around 2,154 points. Business sentiment, as measured by the Economic Sentiment Indicator (ESI), also developed negatively, recording a drop of 5.4 % to end the third quarter at 96.8 points.

Synopsis of Input Variables and Real Estate Economic Situations Q3-2022

Country

Stock Index

Real Estate Economy Index

Economic Indicator

Base Interest Rate

Interest Rate 10-Year Government Bonds

Q2-2207/2208/22Q3-22Delta (%)
Q2-22 / Q3-22
DE
do
dodo
dodo
eq
upup
289.8
289.2
278.1
258.9
-10.7
GB
do
dodo
dodo
upup
upup
202.5
195.8
198.1
189.5
-6.4
PL
dodo
do
dodo
upup
up
183.1
181.9
179.4
175.1
-4.4
NL
do
do
dodo
eq
upup
184.8
189.5
183.2
175.8
-4.9
FR
do
do
dodo
eq
upup
225.6
231.9
227.5
219.3
-2.8
ES
dodo
do
dodo
eq
upup
178.4
174.9
175.3
172.9
-3.1