French hospitality sector hit hard by the pandemic s 2nd wave - Extendam
On 12 October, the Secretary of State for Tourism, Jean-Baptiste Lemoyne, encouraged the French to book their All Saints Day holidays. Reading the latest monthly barometer carried out by Extendam, with the support of various partners, to monitor developments in the hospitality sector, it is clear that the call has not been heard through the second wave of the pandemic. We were expecting a lot from October, with a mix of corporate
clients in the first fortnight and leisure clients in the second with the All Saints Day holi- days, says Vianney Lautrous, Extendam s asset management manager. However, although we saw a slight quiver at the begin- ning of the month, particularly in terms of last minute bookings and economic seg- ments in the provinces, the government s call to go on holiday was not enough, and some hoteliers have started to close their establish- ments again.
Without a supply rebound, French developers still struggling in Q3 2020 - FPI The wish of France s real estate deve-lopers, who had hoped for a rebound after a catastrophic Q2 2020, has not been granted, according to the developer association FPI (Fédération des promo- teurs immobiliers). Faced with a sharp contraction of supply, the sector recorded in Q3 significant falls in total sales (-28.5%) and homes up for sale (-37.5%) compared with the same period last year. The figures remain worrying , according to Alexis Rouque, General Delegate of the FPI. We had hoped to have, with the
end of the electoral cycle and the end of the confinement, a rebound in building permits and housing starts to make up for the delay accumulated during the first lockdown, but that is not what is happening. Housing starts certainly had a slight catch-up effect (+6.3%) in Q3 2020, at 386,500, after the sharp drop recorded in Q2 fol- lowing France s first lockdown. On the other hand, the recovery is not as strong in terms of building permits, with a -11.5% drop compared with Q3 2019. The situation is particularly critical for the
multi-family housing sector (-18.7%). As a result, the volume of homes up for sale, which was heavily affected in Q2 2020 by the lockdown (-53.8% compared with Q2 2019), continued to fall in Q3 2020 (-37.5%). The figures of homes up for sale represent tomorrow s production, but they are at a historically low level, as we have to go back to 2008 to find equivalent levels,» explains Marc Villand, President of the Île-de-France Property Developers Federation. We are therefore in a very worrying situation.
Cain International enters Paris Office Market alongside Freo
Cain International, the privately held real estate investment firm operating in Europe and the United States, has entered the Paris office market with the acquisition, alongside Paris-based partner Freo, of the Colisee II building from a French institutional investor. The 11,488 sqm office asset is located in the Saint- Ouen region in the north of Paris. Cain International s European real estate portfolio is valued at over 2bn and spans Ireland, Spain, Central Eastern Europe, the UK, and now France. It is the firm s third partnership with Freo group, having previously worked with the investment manager in Spain.
Heard on
The vaccine brings some hope on the equity and retail markets
- Nigel Almond, Head of data analytics EMEA at Cushman & Wakefield
France s CRE market had a more muted reaction to the pandemic than the UK
- Will Robson, MSCI
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