• Viewpoint

Patrick Leniston point of view about french real estate

Patrick Leniston

Director Buildings Belgium, France, Italy & Spain

+33 1 40 74 36 20 Mail

With Germany and the UK locked in a battle for first place in Europe in terms of investment, France has remained stable not ‘yet’ being swayed by the UK Brexit or the US elections. 

There is no point in second guessing what political outcome lie ahead for us in France for 2017 but uncertainty there is. The market fundamentals are good with improving consumer confidence, a seemingly halt and slight decrease in unemployment and construction costs stable. So what is new one could say ! 

My personal opinion is that Paris and it’s ever improving Metropolis thinking, increased level of infrastructure investment, improved freedom of design through real un-restricted competitions where the key word is reinventing is “The key changing factor in how others see France”. Be it through our own publications and research on the subject or that of brokers, financial consultants and a variety of investor reports, Paris is gradually creeping up the rankings in most areas . 
So what should one really know when first venturing into France and Paris other than the usual cultural awareness warning that will change in approach depending on where you come from. Fundamentally the construction industry seems to be the biggest stumbling block I have noted in the last 20 years. 

For assets with limited input other than market knowledge, quality of revenue and overall risk profile, there is no fundamental watch outs specific to France. But when it comes to actually driving an Assets performance then you discover a fragmented market, dominated by some very marge players that are contractors first, advisors second. How you chose to approach capital investment will determine the success of your project so do take time to understand how the market works first at due diligence phase, chose with care an independent advisor at an early stage and apply your own country common sense, if there is no answer then there is an underlying issue that has not been understood. 

Questions about this article

Patrick Leniston

Director Buildings Belgium, France, Italy & Spain

+33 1 40 74 36 20 Mail