French capital invested in European real estate hit nearly €3.2bn in the first half of 2023, accounting for 10% of all cross-border investment, according to the latest data from Savills.
This is double the 5% share recorded last year and also exceeds the 6% average over the past five years. Spain attracted 32% of French capital outflows, with the UK and Italy each accounting for 18% of all French cross-border investment in Europe.
James Burke, director, European capital markets and global cross border investment at Savills, said: “Whilst French capital outflows predominantly targeted office and retail properties in recent years, cross-border investment out of France is now more evenly spread across different asset classes. Senior housing and care homes have notably gained traction, accounting for 18% of their foreign investment since the beginning of the year. This shift is largely attributed to several portfolio sales in Italy, Belgium, and Germany.”
Lydia Brissy, director of European research at Savills, added: “Despite an ostensible focus on Europe’s south, markets in northern Europe continue to draw interest from Paris, with notable transactions in the Netherlands and Ireland amongst others. Corum, for instance, acquired the George Quai House office building located in Dublin’s CBD from Henderson Park for €80m.
“Over the past three years, French SCPIs [Sociétés Civiles de Placement Immobilier] have intensified their overseas activities. This strategic diversification has been driven by a dual aim: to broaden the scope of their portfolio and to explore lucrative opportunities yielding attractive returns in other European nations. We expect their cross-border activity to continue over the coming months.”
