Direct property in France turned in an outstanding performance in 1999, as total property returns rose to 13.9% compared to 5.5% in 1998.
According to the IPD France index, total returns on direct property comprised an income return of 6.1% and capital growth of 7.8%.
The office, retail and industrial sectors all showed improved returns compared with 1998, with offices leading the field with a1999 return that increased from 5.8% to 17.9%. Retail produced the smallest gain, rising from 18.9% in 1998 to 19.7% in 1999.
Returns for IPD France are calculated from a pool of investments owned by more than 25 of France’s major property owners.
The total value of properties included in the pool in December 1999 was FFr159bn (£15bn), which represents 30% of the value of holdings of the financial institutions and quoted property companies in France.
EGi News 26/06/00
