Weekly report : Covid-19

French residential: from haven to safe haven?

Week 13th to 17th april 2020

A consensus is emerging that the lockdown exit strategy (France plans to lift its lockdown on 11th May) will involve reinforced social distancing (e.g. face masks, a ban on gatherings of people, cafés/restaurants remaining shut), systematic testing and continued quarantine for certain groups of people (senior citizens), not forgetting the continued closure of borders. It is difficult to set a time limit for these measures, especially as a hypothetical vaccine is not expected until 2021. Such
an outlook means less visibility for market operators and thus dampens the expectations of consumers and businesses alike, which will have a crucial role to play as the strength of the recovery depends on them.

The residential real estate segment’s indicators were extremely sound before the Covid-19 crisis: transactions in the existing housing market had reached a record high (>1million in 2019) for the second year running; prices were rising substantially but under control (+3.9% in the Paris region and +3.6% in the provinces in the 4th quarter of 2019 year-on-year); and mortgage rates were falling (-32
basis points between December 2018 and December 2019). Above all, institutional investors were still keen on block residential assets in France (€3.5bn invested in 2019) and especially across Europe (€62.7bn, of which €18.3bn in Germany despite the rent cap in Berlin). New property sales and construction starts, on the other hand, had begun to dip somewhat as they often do in the run-up to local elections.

Read the note

 

note hebdomadaire covid-19 immobilier recherche Primonial REIM

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

The post-covid office in Europe: Disruption or acceleration?
  • Overview

The post-covid office in Europe: Disruption or acceleration?

22/03/2021 By Daniel While

Companies have scaled up partial or total remote-working practises and, in reaction, employers have taken another look at their real-estate policies, and employees at their lifestyles.

Read the note
Les fonds immobiliers non-cotés face au deuxième tour de la crise : la résistance des valeurs
  • Overview

Les fonds immobiliers non-cotés face au deuxième tour de la crise : la résistance des valeurs

30/06/2020 By Daniel While

La question des valorisations immobilières se pose, au regard du nouvel environnement économique. C’est la situation des fonds immobiliers non cotés (SCPI, SCI, OPCI) que nous examinerons plus particulièrement, en positionnant les stratégies de Primonial REIM dans cette analyse.

Read the note
#Weekly Covid-19 - French real estate market - a pre-opening inventory
  • Overview

#Weekly Covid-19 - French real estate market - a pre-opening inventory

08/05/2020 By Daniel While

week 4th au 8th may 2020. The main European countries have announced their reopening dates and procedures. What does the dashboard look like for real-estate investors ?

Read the note