Resicom – Holiday Investment – 04-21 – LB

Macron Election Win Expected to Boost French Property

The French property market is now expected to rebound following the win by Emmanuel Macron in the French presidential election this week.

The financial quarter leading up to the presidential election in France saw the French property market in a mini slump with real estate investment down by 30 per cent on its long-term average to just €3.6 billion.

There had been fears that a victory by Front National’s Marine Le Pen would not be seen favourably by the French property investment market, but with the election of Emmanuel Macron further stability is expected to result in the market returning to a quarterly norm of around €6 billion to €9 billion.

According to Iryna Pylypchuk of Fidelity International the fundamentals remain strong in the French property market, and a return to normal transaction levels is now expected port election.

She said: ‘Occupier market fundamentals are solid and, in most markets, the letting activity is in-line or just above the long-term average. Space under construction, especially in the office sector remains muted.’

Real Estate Investment Trusts (REITs) are expected to recover quickly following the election result, with commercial and residential real estate interest due to follow.

Overseas property investors who have been holding back investment during the uncertainty in the run-up to the general election are now expected to move forward with plans to invest in French property, as they look forward to more stabilty brought about by the election of the Centrist presidential candidate.

Global head of research at Amundi, Philippe Ithurbide, said before the election result that if Macron prevails ‘much of the uncertainty will be lifted and we can now look at France and the French markets with a much lower risk premium, concentrating on the fundamentals’.

It seems that France is once again open for property investment business.

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