The French property market seen through the eyes of North American investors
Because of the size of their local markets and the scale of funds invested outside their borders, North Americans are the world’s leading property investors. They also play a key role in the French investment market and have undoubtedly helped to drive its growth from the 1990s onwards. Since then, they have bought and sold many landmark properties in France and have established themselves as the leading foreign players ahead of the British and Germans. North American funds have also invested in French listed property companies, including URW (BlackRock), Klépierre (Simon Property Group), Mercialys (BlackRock) and Gecina (Ivanhoé Cambridge).
Furthermore, the 5,000 or so subsidiaries of U.S. companies based in France contribute to the strength of the French property market, helping to stimulate rental demand in key sectors such as finance and new technologies.
With the French investment market reaching its lowest level in 15 years in 2024, North American investors will undoubtedly play a significant role in its recovery. Last year, they already made their mark by increasing their investments in France by more than 150% compared with 2023, and by accounting for the largest share of the amounts invested by foreigners. Several North American investors have recently announced their intention to increase their presence in France, confirming their long-term commitment to the country.
While the French market is full of opportunities, the North Americans firms should prioritize strengthening their positions in the industrial and alternative asset markets. They have adopted a more diversified strategy in recent years, in line with global trends. They are rebalancing portfolios that were previously focused on offices, although they have not abandoned this real estate category.
In this study we examine the history of American real estate investment in France to better understand its evolution. At a time of transition for both France and the United States—marked by political uncertainty and economic slowdown in France, and a new administration and economic momentum in the U.S.—this moment presents an opportunity to evaluate the attractiveness of the French market while also outlining current and future opportunities for American and international investors.
