Home » Icade and Nexity launch “Terra”, a new generation service sector

Icade and Nexity launch “Terra”, a new generation service sector

by archyw

“Overall, the results are settling with a volume invested in undercover real estate which fell by a third in the first half of 2021” underlined Nicolas Verdillon last week in our columns about the real estate investment market. ‘business.

The “managing director” in charge of the investment business line of CBRE France referred to a “currently very contrasted market” and, above all, estimated that “in the end, we must pay attention to the immediacy of the figures because fund trends are pretty good. The capital is there. Consequently, for the next few months we believe that the dynamics of the investment markets should be a little less erratic and gradually stabilize and strengthen ”…

“After a 1is quarter 2021 dynamic (5.2 billion euros committed), volumes invested in commercial real estate in France slowed significantly in the 2th quarter with only 3.6 billion euros invested ”also notes BNP Parias Real Estate. But Olivier Ambrosiali, Deputy Managing Director, in charge of the sales and investment division of BNP Paribas Real Estate Transaction France, anticipates that “with the acceleration of cases being sold, the volumes invested in commercial real estate in France could get closer to the threshold of 30 billion euros in 2021 ”…

Likewise at JLL, Stephan von Barczy underlines that “this drop in activity was expected, a certain number of marketing campaigns, notably from French real estate companies, not having been able to materialize at the end of 2020. The market has failed. , moreover, could not find its normal functioning, the Mipim having again been canceled this year. The “pitch” activity thus did not really start until March, whereas certain files normally initiated during the show could have materialized in the 2th trimester “. And the director of the investment department of JLL concluded: “we anticipate, nevertheless, a resumption of activity in the second half of the year” …

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Just like at Knight Frank, for whom “despite the progression of the Delta variant, the increase in vaccine coverage, the rebound in economic activity, the gradual recovery of the rental markets and the major operations being finalized are all elements allowing to count on a sharp rebound in the volumes invested by the end of 2021 ”. However, this council considers, for its part, that “the delay taken in the 1st half of the year and the lack of” premium “offers should not allow to achieve the result of last year (26.3 billion euros) . The year 2021 could therefore constitute the low point of this epidemic period, even if the impact will be much less than during the great financial crisis (7.2 billion invested in 2009) ”. Because “the liquidity to be placed is, in fact, abundant and the“ spread ”remains favorable to the real estate compartment despite a rise in bond rates. Broadly stable, “prime” yields should come under downward pressure in the second half of the year on certain asset classes. This is the case for logistics, with rates close to 3.50% (a loss of 200 basis points in barely five years) or even offices in certain areas of Paris outside the CBD or the inner suburbs. This squeeze is explained by the attraction of secured assets, the limited supply of which is struggling to satisfy the appetite of investors. Competition for the best assets is all the stronger since, unlike previous crises, foreign players are very present. They thus concentrated 50% of the volumes invested in France in the first half of the year, with the Americans leading the way thanks to major acquisitions of logistics warehouses or offices. As for the French, they were more discreet. However, the major savings collectors will return to the forefront in the second half of the year with the forthcoming finalization of several large operations, in a context of a rebound in the collection of SCPIs / OPCIs and life insurance ”. This leads Antoine Grignon, co-director of the investment department at Knight Frank France, to estimate, for his part also, that “despite the sharp drop in the sums committed in the first half of 2021, everything therefore seems in place for a fairly rapid recovery of the activity “…

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