French Property Returns Recovered on Strong Industrial Performance

Bi-Annual Total Return; Standing Investments

Source: MSCI France Biannual Property Index

French real estate returns rebounded during the first half of 2021.

According to the MSCI France Biannual Property Index, a total return of 3.4 percent comprised an income return of 1.8 percent and a capital growth of 1.6 percent.

This was well up from a year ago when a total return of 0.6 percent was recorded for the six months ended June 2020. That said, the market’s all property total return remained below its pre-pandemic level.

Industrial remained the top performing sector with a return of 8.6 percent for the six months to June while office recorded 2.3 percent over the same period.

Among the various property segments, only industrial managed to improve its returns when comparing the year to June 2021 to the year prior.

During this period, Industrial property all but doubled its total return from 10.5 percent to 20.0 percent.

Parisian offices also produced a positive annual total return of 5.2 percent, albeit lower than the 8.7 percent of the 12 months to June 2020.

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