Market slowing but remains promising
Investment volume
With a backdrop of the war in Ukraine, rising inflation and increases in interest rates, the commercial real estate investment market entered into Q1 under a veil of uncertainty. By the end of Q1 2022, €4.6 billion was invested in commercial real estate, representing a -7% year-on-year decrease. The reduction was even more marked in the Greater Paris Region where just €2.9 billion was recorded, representing a -17% year-on-year decrease.
Asset types
The slowdown in the Greater Paris Region affected offices in particular as these only accounted for 62% of investments with €1.8 billion. Offices remained in the majority compared with other asset classes but with levels that were far lower than normal (82%). Conversely, a year-on-year increase was recorded for industrial premises (€160 million) while, with €900 million in investments, retail also made a promising start to the year.
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