French Oct housing starts dive, 12th consecutive drop

PARIS, Nov 25 (Reuters) - French new housing starts fell for a 12th month in a row in October and by the largest amount in four months, data showed on Tuesday.

The housing ministry said new housing starts fell 20.6 percent in the three months to end-October compared with the same period a year earlier, the biggest fall since June 2008 when they dropped 28.2 percent.

Signs of a correction in the French housing market have been growing for months as transactions and then prices of existing homes fell in step with the slide in new home construction.

While the market slowdown in France has been less dramatic than in neighbours like Britain, Spain or Ireland, worries over real estate, combined with unemployment concerns, have helped drive consumer confidence to its lowest level in two decades.

France 'still a place to invest'

To hear some speak it may be believed that when it comes to property France has offered nothing more than a stable market with low growth and the prospect of a pleasant lifestyle. Some may say that both of these are very good reasons to invest - not least the first in the current circumstances.

Even so, the situation in France is more varied than that. Discussing the market in the country, director of Francemediterraneanproperty.com Peter-Danton de Rouffignac has noted that many parts of the country have seen very large increases in property value in recent years.

Writing for French Property News, he stated that this has particularly been the case for the major cities around the country. While the overall market has seen prices fall and may suggest a buyer's market - more so in the secondhand sector as many new builds are being bought up as social housing by the government - the major urban areas have boomed.

Stabilizes Lyon, France Development With 264,000 SF Lease

Lyon is France's second largest metropolitan area and the primary distribution hub for goods entering Europe via the port of Marseille. The logistics park's location serves one of the larger pan-European distribution networks due to its proximity to the main transportation access routes into Barcelona, Milan, Switzerland and Paris.
"Many customers in Europe are focused on time-critical decisions, and when their requirements call for well-located, Class A distribution facilities at key European trade hubs, we're pleased they continue to turn to AMB," said Mo Barzegar, AMB's managing director, Europe.
"We approached our expansion in the Lyon region with great deliberation. While the leasing process might have posed a challenge for most real estate companies, AMB showed great commitment and integrity while working with us," commented Egbert Maagd, Wincanton's CEO for France. "In addition, the building location and functionality provides Wincanton with a strategic solution for our business in this region."

Hammerson: Current Development Programme Nearing Completion

LONDON -(Dow Jones)- Hammerson said Monday that its current development programme nearing completion.
The company has a portfolio of the highest quality which generates a robust income stream, it said.
This will increase as rents flow from recently completed developments.
The chairman John Nelson, said the unprecedented conditions in financial markets worldwide have had a major impact on real estate markets leading to caution on the part of occupiers and a sharp decline in investment activity.
These challenging conditions are likely to persist for some time.
"Nevertheless, I believe that Hammerson's strengths and its experienced management team mean that the group is in a good position to weather the current environment and benefit when conditions in real estate markets improve".
Hammerson's investment portfolio continues to generate a robust income stream from a broad spread of tenants, both in the U.K. and France, he said.
The average unexpired lease term is 10 years.

Sarkozy May Need Stronger Moves to Shore Up France's Economy

PARIS – Pressure mounted on President Nicolas Sarkozy to come up with an even stronger recipe to try to shield France's fragile economy from the worldwide financial and economic crisis.

Mr. Sarkozy has been one of the most active European leaders to try to mitigate the effect of the financial crisis. Just this week, he said France would by the end of the year set up a national sovereign wealth fund to invest in struggling French companies.

Yet on Friday, the benchmark CAC40 index dropped again on fears that an upcoming recession would now come crashing on French business, battering corporate earnings. The CAC has fallen 4.1% this week and 43% since the start of the year.

The fall in France's stock market highlights how fast the world-wide market turmoil is hitting even countries that at first appeared relatively unscathed by the financial crisis. French banks have, for example, traditionally been more risk averse than their U.S. and European rivals, keeping large retail operations and limiting their exposure the U.S. sub-prime crisis.