French investors like the Spanish real estate market. So much so that our country concentrated 32% of the capital who invested in the Old Continent in the first half of the year. Specifically, operations carried out by French capital in Europe amounted to nearly 3.2 billion euros, which represents 10% of all cross-border investment recorded on the continent.
This percentage is higher than the 5% recorded last year and the average of 6% over the last five years, according to the latest Savills European Cross Border Investment report.
“The French investor is accustomed to diversify in locations, markets, tenants and tickets investment. They are looking for diversification geographically and by type of asset, but also by investment size,” explains Carlos Ruiz-Garma, director of Regional Investment in EMEA at Savills.
In which segments do you invest? The consulting firm’s report explains that the transactions carried out in recent years were mainly concentrated in office buildings and commercial premises, now these investments are more spread across different asset classes. For example, residences for seniors and senior living They are generating greater interest and already account for 18% of the investment cross border French since the beginning of the year. This change is largely attributed to various portfolio operations in Italy, Belgium and Germany.
Some of the most relevant operations carried out by French investors are the purchase of the Leitat Technology Center, the acquisition in March of the Eurostars Sitges Hotel or the purchase of a Carrefour portfolio carried out by Inter Gestion, also in March of this year.
The consultancy firm’s report points out that although investments are concentrated mainly in the south of the continent, the northern European markets continue to attract the interest of Paris, with notable operations in the Netherlands and Ireland, among others.
Similarly, in the last three years, French SCPIs (Sociétés Civiles de Placement Immobilier) have intensified their activities abroad. This strategic diversification responds to a double objective: to expand the reach portfolios and explore lucrative opportunities with attractive returns in other European countries.
The United Kingdom and Italy follow Spain as a destination for capital of French origin. The British market accounts for 18% of total French cross-border investments in Europe, in line with the long-term average, while Italy accounts for 18%, 5% more than the average of the last five years (13% ).