Wednesday, March 17, 2010

MIPIM 2010: French pessimism

Wisconsin Real Estate MBAs report from MIPIM 2010:

Panel: Will There Be Any Investment Opportunities in France in 2010?

A recent survey suggests 1% growth in French GDP in 2010. What’s preventing an upturn? Mismatched expectations between buyers and sellers, scarcity of new product, and uncertainty about the future. Are there signs out there of a renewed cycle of growth in France? Pessimism persists but given a lack of real estate product in the pipeline and the amount of investment dollars waiting on the sidelines, a turnaround could be seen before late 2011. The real estate crash in ’91-’92 was the result of over-supply, which isn't the case today. Demand may soon drive the market to become active soon. In particular, new green building laws in France should incent development of new buildings. But this outlook is tempered by fears that this new legislation may lead to faster building obsolescence.

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