FLASH INVEST

Residential Market France

2020 Overview

Record level for the residential investment market in 2020

• €7.1 billion (+82% in one year) through 223 transactions

• The traditional segment (free and intermediate housing) has increased by 150%, while serviced
residences (student, senior and coliving) have fallen by 33%, returning to a volume of nearly €954 million
after the €1.4 billion recorded in 2019.
• The outlook for 2021 is positive given the appetite of investors for this asset class whose acquisition
activity has exceeded for the first time that of retail (€4.3 billion) and logistics warehouses (€3.4 billion).

INVESTMENT VOLUME IN FRANCE

Investment volume (Classic & with services, i n € millions)
Classic Serviced Total
• An strong acceleration of residential asset acquisitions in 2020 with a record level of 2020 6,157 954 7,111
around €7.1 billion, mainly driven by the traditional segment (free or intermediate 2019 2,461 1,420 3,881
housing units) 2018 2,819 826 3,645
2017 3,817 168 3,984
• The number of transactions also illustrates this rise in the residential segment: 223
deals in 2020 compared to 199 a year earlier (+12%). It also shows the increase in NUMBER OF DEALS
average unit amounts, which rose significantly from one year to the next thanks to (Classic & with services)
the sales of several portfolios: CDC with developers NEXITY, ALTAREA
Classic Serviced Total
COGEDIM, CAPELLI, REALITES PROMOTION and WOODEUM, and IN'LI with
2020 181 42 223
EIFFAGE-COFFIM. Forward sales (Ventes en Etat Futur d'Achèvement) were
2019 151 48 199
therefore at the heart of the residential investment market in 2020, accounting for
2018 78 5 83
almost 70% of the total volume committed. 2017 90 41 131

Residential asset types

• Classic: The exceptional support plan decided by CDC HABITAT- AMPERE INVESTMENT VOLUME IN FRANCE
(Classic, Serviced, i n € million)
GESTION has given a strong boost to the traditional residential segment with more
than €3.5 billion euros invested in 2020 in operations under development. €6.2
billion spread over more than 180 transactions, i.e. more than a doubling of Classic Serviced Total
2020 6,157 954 7,111
volumes from one year to the next.
2019 2,461 1,420 3,881
2018 2,819 826 3,645
• Student housing : After an exceptional year in 2019 in terms of volumes 2017 3,817 168 3,984
(acquisition of the KLEY portfolio by AXA REIM), the volume of investments
returns to a more usual level with 232 million euros committed in 2020. Most INVESTMENT VOLUME IN FRANCE
acquisitions are concentrated in the €10-20 million segment. (Classic, with services, i n € million)
Students Seniors Coliving
• Seniors housing : The investment volume increased to reach €687 million in 2020 2020 232 687 35
(compared to €523 million in 2019). Once again, forward sales reign supreme with 2019 860 523 37
a market share of 77%, demonstrating the emergence of a new residential supply
for seniors, which differs from retirement homes and other EHPADs.

• Coliving : This still nascent market segment is consolidating its volumes around a
handful of transactions (4 in 2020) targeting the heart of the main conurbations. It
is expected to grow significantly in 2021 given investor appetite for this new asset
class and the opening pipeline of operators.

Sources : Cushman & Wakefield / Immostat pour l’Ile-de-France

 FLASH INVEST
Résidentiel France
Bilan 2020

Investors

• The panel of investors active on the buy-side of the residential market continues to expand: alongside the traditional players in this
segment (mainly insurance companies and SCPI-OPCI), investment funds are gaining in importance and are showing a desire to
increase their exposure to this resilient asset class, which is less subject to a disrupted use linked to the Covid 19 health crisis. This
expansion is reflected in the diversity of residential assets, candidates for real estate investment, with a particular appetite for serviced
residential property, which makes it possible to develop a long-term strategy to support the development of operators in the sector.

• There are therefore a few heavyweights in the sector, first and foremost CDC HABITAT AMPERE GESTION, a specialist in the sector,
but also IN'LI. They are in direct competition with more generalist investors such as PRIMONIAL, SWISS LIFE, AEW EUROPE and LA
FRANCAISE, all of whom manage SCPI/OPCI or act for pension funds, as well as with French and foreign investment funds that
intend to rapidly increase their activity in this asset class.

• Investment intentions for 2021 clearly show a willingness on the part of new entrants to join this pro-residential trend which should
support market activity this year, subject to identifying investment opportunities in both the new and existing asset segments.

PRIME YIELDS FRANCE

(*latest update in 1st January 2021)

Q4 2020
Office – Paris CBD 2.80%
High Street Shops - Paris 3.10%
Shopping Centres 4.25%
Retail parks 5.00%
Logistics France 3.70%
Residential (Paris & Tier 1 Urban cities) 1.50 – 3.50%
Student housing (Greater Paris Region – Tier 2 regions) 3.00 – 4.30%
Seniors housing (Greater Paris Region – Tier 2 regions) 3.00 – 4.75%

TRACK RECORD – CUSHMAN & WAKEFIELD

Rue de Tocqueville Rue Garnier Paris 20ème

75017 Paris 92200 Neuilly-s-Seine
• SURFACE : 2,350 sq m • SURFACE : 2,825 sq m • SURFACE : 6,700 sq m
• VENDOR : PRIVE • VENDOR : Developer • VENDOR : INSTITUTIONNAL FUND
• BUYER : INVESTMENT FUND • BUYER : Nue pro /Usufruit • BUYER : VILLE DE PARIS
• USAGE : RESIDENTIAL • USAGE : RESIDENTIAL • USAGE : RESIDENTIAL / OFFICE

Cushman & Wakefield FRANCE

21 rue Balzac 75008 PARIS
For more information, please contact :
CHRYSTELE VILLOTTE
Head of Residential & Healthcare
Capital Markets France
Tel: +33 (0)1 86 46 11 07
chrystele.villotte@cushwake.com
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