Since Jan. 20, relations between Europe and the United States have become somewhat turbulent. It was against this backdrop of trade and geopolitical tensions that the Newmark consultancy published a highly instructive study two weeks ago on North American real estate investment, particularly that directed towards Europe and France.
But first, let's take a look at the weight of Americans and Canadians in the sector. They are the world's leading real estate investors. The figures speak for themselves. Last year, they accounted for 60% of the €769 billion invested worldwide. They are ahead of the Europeans (19%) and the Asians (16%).
While the bulk of capital is reserved for their domestic market, the deepest with 430 billion€ of investment, a certain amount is pouring into Europe: 36 billion€ in 2024. This makes them Europe's number one destination abroad. Even though Europe has suffered from an economic slowdown, political uncertainties and armed conflict between Russia and Ukraine.
What about France? France still attracts over €3 billion in investment from North American players. Over the past 15 years, more than €70 billion of capital from across the Atlantic has poured into France, including 50 billion into Paris. This makes Paris one of the three major metropolises attracting American investors, after New York and London.
It has to be said that the history of real estate between North Americans and France tells a story that is somewhat reminiscent of the cycles our sector has gone through, punctuated by both successes and setbacks.
The 1990s saw the arrival of funds, described at the time as "vultures". These funds, by buying up bad debts and distressed buildings, had the merit of cleaning up a sector in perdition.
The 2000s saw the financialization of real estate, marked in particular by the introduction of the status of listed real estate investment companies — we call it the Siic status in France, directly inspired by American REITs.
For the past 15 years, even after the Lehman Brothers shock, North Americans have not stopped investing in France, gravitating to logistics since the Covid pandemic. And new players continue to arrive on the French market: Clarion, Cadillac Fairview, Franklin Templeton, Realty Income, Realterm...
So, even though relations between the United States and Europe are deteriorating, it's hard to imagine Americans turning away from our continent. Especially as the dollar remains strong against the euro. The European real estate market is deep and diverse. That values have corrected.
The few Parisian "happy few" who are railing against Trump's America will not be able to challenge a decades-long love story. After all, in love stories, there are always ups and downs.