Market Data

International Beat

France’s Big Deal

French developers Unibail-Rodamco and Socri are joining forces to build a $462 million outdoor shopping center on the French Riviera. Scheduled to open in 2015, Polygone Riviera in Cagnes-sur-Mer outside of Nice will feature gardens, original contemporary art, and more than 800,000 sf of high-end retail space, along with a casino and 10-screen movie theater. France is the only Western European country to see retail investment increase last year and, although Paris is France’s retail hub, strong fundamentals in regional cities such as Nice, Lyon, Bordeaux, and Toulouse are also attracting international retailers looking to enter the French market.

“The Eurozone economy, while not without its ongoing problems, is poised to emerge from recession and expand in 2013.”

— Wells Fargo Securities

Top Emerging Markets for Real Estate Investment

1. Brazil
2. China
3. Turkey
4. India and Mexico

Source: Association of Foreign Investors in Real Estate

Markets to Watch

  • Both foreign and local investors contributed to Russia’s $7.9 billion investment volume for 2012, with many investors focusing on the Moscow market, where 88 percent of transactions took place. Russian investors accounted for 78 percent of 2012 market transactions, compared with 59 percent in 2011. Retail is a particular attraction, with developers introducing new formats. Russia’s first discount outlet mall opened in Moscow in 2012, with two more opening this year and another in 2014. In comparison, the U.S. has 300 outlet malls and Europe has 150, so Russia definitely has room for expansion.
  • Europe’s commercial real estate market saw a strong finish in 2012, with 4Q12 transaction totals reaching $55.1 billion, up 48 percent from 3Q12, and up 16 percent from 4Q11, according to CBRE. Both Germany and Norway reported their highest quarterly activity since 2007. As expected, transaction activity in Portugal, Spain, and Italy was down considerably from last year due to the economic crisis. And in England, while London continues to attract investment capital, 4Q12 activity in the rest of the country was flat.

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