Incredible but true, says Trisha Mason, of property consultants VEF, who even predicts a small growth in the French property market this year. "The French property market remains one of the most stable in the world at the moment," she says. "Mainland Europe continues to hold its own during the credit crunch, with France on target to show growth of 1 percent this year, which is not a lot, but much better than America's and Britain's predictions of recession."
So how has France escaped while its neighbors languish in property market stagnation? Mason explains: "French lenders have traditionally been much more cautious than U.K. and U.S. lenders and although a few banks have been affected by the sub-prime, it has not been a large enough problem to cause any real shortfall in mortgage funds."
To limit risk, French banks usually spread their investments much more widely than those in the U.S. or U.K. Only about a quarter of banking activity is related to investment banking and dealer-broker activity, while the rest is retail banking.
Thursday, December 25, 2008
Monday, December 22, 2008
More banks, from Paris to Tokyo to Madrid, emerged Monday as victims of Bernard Madoff's
BNP Paribas, the biggest French bank, said Sunday that it has as much as €350 million, or $472 million, at risk from Madoff's investment advisory business. Nomura Holdings of Japan has ¥27.5 billion, or $302 million, at risk from Madoff's funds, while Banco Bilbao Vizcaya Argentaria of Spain may face up to €300 million in losses.
Madoff, 70, was arrested by federal prosecutors Thursday and charged with operating what he told his sons was a long-running Ponzi scheme in the New York-based firm's business advising rich people, hedge funds and institutions. He told senior employees that the firm was insolvent and "had been for years," prosecutors said in the criminal complaint.
"A frothy market encourages slack oversight," said Peter Hahn, a fellow of finance at London's Cass Business School. "Whenever something like this happens, everyone who has been hit will comb through their investments."
Madoff, 70, was arrested by federal prosecutors Thursday and charged with operating what he told his sons was a long-running Ponzi scheme in the New York-based firm's business advising rich people, hedge funds and institutions. He told senior employees that the firm was insolvent and "had been for years," prosecutors said in the criminal complaint.
"A frothy market encourages slack oversight," said Peter Hahn, a fellow of finance at London's Cass Business School. "Whenever something like this happens, everyone who has been hit will comb through their investments."
Thursday, December 18, 2008
Paris came next after London
September and October were worthless in real estate market - sales were dropping catastrophically. The forecasts of “downing lightly” were not proved at all in the capital of France. The crisis has mostly touched flats the worth of which was from 1M to 3 M euros - compared to 2007, sales in 2008 dropped in 24 percent. In one of the most beautiful cities of the world one could buy exclusive and very exclusive apartment in an old-style Parisian house for such a price.
It was locals who bought such flats in Paris. They spent 8500 euros per square meter in 2007, and 10000 euros - later. During the crisis prices has dropped to the previous level.
Experts declare two reasons for the drop in real estate value: on one hand, buyers are not sure about their own future, on the other hand, the smarter are waiting for a bigger drop in prices.
It was locals who bought such flats in Paris. They spent 8500 euros per square meter in 2007, and 10000 euros - later. During the crisis prices has dropped to the previous level.
Experts declare two reasons for the drop in real estate value: on one hand, buyers are not sure about their own future, on the other hand, the smarter are waiting for a bigger drop in prices.
Sunday, December 14, 2008
Paris and Ile de France: hopes pinned on public sector
In normal times the agency would see 200-220 businesses set up or move into the region under its remit – the city of Paris and its eight neighbouring administrative regions or “departments” – every year. But a change in climate has hit the region.
“2009 is largely played out,” Mr Baudoin says. Business investment is tied to mergers and acquisitions activity, which has shown a 30 per cent fall in the first eight months, leading him to expect a similar decline in activity in 2009.
With the private sector catching an investment cold, that puts the burden on public authorities to maintain the spending needed to keep Paris attractive in the global market and provide amenities that companies and employees require. Public investment is more likely to go ahead, Mr Baudoin says keeping hope alive that Paris will retain competitiveness. Transport links and a “greening of the Ile de France” are two priorities that he hopes will help the capital develop.
“2009 is largely played out,” Mr Baudoin says. Business investment is tied to mergers and acquisitions activity, which has shown a 30 per cent fall in the first eight months, leading him to expect a similar decline in activity in 2009.
With the private sector catching an investment cold, that puts the burden on public authorities to maintain the spending needed to keep Paris attractive in the global market and provide amenities that companies and employees require. Public investment is more likely to go ahead, Mr Baudoin says keeping hope alive that Paris will retain competitiveness. Transport links and a “greening of the Ile de France” are two priorities that he hopes will help the capital develop.
Monday, December 8, 2008
In Paris, an Apartment Inspired by India
Prices in the seventh arrondissement now range from 9,000 euros to 12,000 euros per square meter ($1,068 to $1,424 per square foot), according to Jeremy Lang of the real estate agencies France Property Search and Lost in France. “Properties aren’t really moving at any great speed, but prices are not really coming down either,” Mr. Lang said.
Much of Ms. Fine’s design inspiration came from a trip to a luxurious tented camp in India shortly after her arrival. “I didn’t have a garden, or land for a tent, so I decided to make a tented room with Indian block-prints,” she said.
The results can be seen in her bedroom and the Turkish-style sitting room in the main apartment. The walls in Ms. Fine’s ultra-pink bedroom and a silk screen standing behind a television set were both made near Jodphur by a tent-maker who she met on the trip. “I was so inspired by the process of making a tent, I asked him to make pink silk panels for my bedroom,” said Ms. Fine.
Much of Ms. Fine’s design inspiration came from a trip to a luxurious tented camp in India shortly after her arrival. “I didn’t have a garden, or land for a tent, so I decided to make a tented room with Indian block-prints,” she said.
The results can be seen in her bedroom and the Turkish-style sitting room in the main apartment. The walls in Ms. Fine’s ultra-pink bedroom and a silk screen standing behind a television set were both made near Jodphur by a tent-maker who she met on the trip. “I was so inspired by the process of making a tent, I asked him to make pink silk panels for my bedroom,” said Ms. Fine.
Friday, December 5, 2008
AMB Property Corporation(R) Stabilizes Lyon, France Development
AMB a leading global developer and owner of industrial real estate, today announced it has stabilized its AMB Isle d'Abeau Logistics Park C development in Lyon, France with a 264,000 square foot (24,500 square meter) lease agreement with Wincanton, a leading European supply chain solutions provider.
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.
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.
Wednesday, December 3, 2008
Sarkozy to help French car, housing sectors
PARIS, Dec 3 (Reuters) - President Nicolas Sarkozy will announce assistance worth billions of euros for the auto and housing sectors on Thursday in a stimulus package intended to help France's economy through the global downturn.
Sarkozy will announce his plans at 1100 GMT at a Renault (RENA.PA: Quote, Profile, Research, Stock Buzz) factory in Douai in northern France.
Recent data has painted a dire picture for France as the global financial crisis spilled over into the broader economy and started to hurt business investment and jobs.
Headline unemployment has risen past the politically sensitive 2 million mark, consumption has slumped and the economy is expected to tip into recession next year.
Sarkozy will announce his plans at 1100 GMT at a Renault (RENA.PA: Quote, Profile, Research, Stock Buzz) factory in Douai in northern France.
Recent data has painted a dire picture for France as the global financial crisis spilled over into the broader economy and started to hurt business investment and jobs.
Headline unemployment has risen past the politically sensitive 2 million mark, consumption has slumped and the economy is expected to tip into recession next year.
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