France’s government debt is a commercial real estate problem
Explore the challenges facing France’s commercial real estate market, alongside emerging opportunities in tourism and retail sectors. Discover more insights.
Political deadlock means France’s government debt will continue rising, and that has markets pricing more risk for owning government bonds. We expect higher bond yields will weigh on France’s commercial real estate recovery.
The outlook for French commercial real estate is challenging, given the country’s strained growth outlook and high exposure to the office sector. French commercial real estate values will continue to decline this year, and France is expected to be one of Europe’s weakest-performing commercial real estate markets over the next five years.
Despite this, selective opportunities exist. Tourism growth and e-commerce expansion will support hotel, retail, and industrial performance. France is notably one of the world’s top tourism destinations and Paris ranks first in Europe for international visitor spending.
While the macroeconomic outlook is concerning, there are pockets of growth and opportunity for commercial real estate investors. Download the report for more detailed insights.
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