Fall 2020 : Real estate keeps on track

september 2020

In our last report, written during the lock-down1, we said that the current crisis would be composed of three phases: rent collection during lockdown; the economic recession; and lastly the longer term impact of the COVID-19 crisis on the real estate sector.

The general consensus is that French real estate investment companies (SCPIs) have handled the first phase pretty well, with fund managers posting average rent collection rates of 80 to 90%. Dividends paid in the first half of 2020 were on average 90% of those paid in H1 2019, with a portion of rents sometimes set aside as a reserve for future payments.

We are now entering the second phase of the crisis, i.e. its economic impact, with soaring unemployment and the risk of a cascade of business closures. One decisive factor will be whether or not welfare compensations will be maintained, as was the French government’s subsidised partial unemployment scheme, which was recently extended for another 12 months.

How can savings be redeployed and what role can real estate play if crisis constraints need to be
maintained for an extended period, even if less severe?

Read the note

The team

Daniel While
Daniel While Research, Strategy & Sustainability Director

Henry-Aurélien Natter
Henry-Aurélien Natter Research Manager

Adrien Isidore
Adrien Isidore Economist Statistician

You may also like

Real estate convictions Europe : 2nd quarter 2022
  • Market review

Real estate convictions Europe : 2nd quarter 2022

24/08/2022 By Henry-Aurélien Natter

Despite a limited impact on financing conditions during the first half of 2022, coupled with the uncertain economic and geopolitical context, the European real estate market saw total investment of €136 billion (up 6% over a year).

Read more
European real estate in asset allocation: new world, new model
  • Thematic study

European real estate in asset allocation: new world, new model

27/06/2022 By Henry-Aurélie Natter, Adrien Isidore

The study analyses the optimal share to allocate between countries and between asset classes according to the desired strategy and the existing mechanisms.

Read more
Real estate convictions: 1st quarter of 2022
  • Market review

Real estate convictions: 1st quarter of 2022

03/05/2022 By Henry-Aurélien Natter

Against a backdrop of global stock market volatility, the European real estate market will have achieved an acceleration in the volume of investment, with €70 billion invested in the first quarter of 2022 (+18% year on yearyear on year).

Lire la suite