Real estate monitor paris 032013

www.ca-suisse.com

Real estate MonitoR: PaRisOverview and Outlook of Paris’s Office and Residential Real Estate Markets

Market and Investment Solutions

March 2013

Real Estate Monitor: Paris

Real Estate Monitor: Paris - 1

Executive Summary

Our latest Real Estate Monitor examines the recent

trends in Paris’s office and residential markets and

presents their outlooks for 2013.

Office Market The worsening Eurozone crisis, economic slowdown,

political and tax uncertainty have put the brakes on the

Paris Region office market during 2012. Although take-

up figures were sustained by large occupiers rationalis-

ing costs by grouping staff into built-to-suit office

buildings, these types of real estate operations often

result in a reduction of the amount of space used per

person. According to CBRE, the Paris Region only saw

24,000m² of net office absorption during 2012, which

compares poorly to an annual average of 726,000m²

since 2001.

On the positive side, the region’s office vacancy rate is

one of the lowest in Europe, and has been stable since

mid-2011. This is due in part to a fairly conservative

supply pipeline. Vacancy does vary by submarket,

however (lower in central Paris and higher outside cen-

tral Paris) and the gap between them has widened.

As a result of increasing vacancy rates, prime rents

have continued to fall this year in the Western Crescent

and La Défense. Elsewhere they have remained broadly

stable. With the exception of Northern and Southern

Paris, which currently have the lowest vacancy rates in

the Paris Region, average rents are lower than they

were five years ago throughout.

Although office investment volumes during 2012 were

down on 2011 levels, they held up rather well given

depressed demand and weakening rents. The main rea-

son was that international investors, sovereign wealth

funds in particular, were very active. Paris Centre West

and Northern Paris prime yields fell by 25 bps this

quarter, as investors are still focused on more ‘secure’

assets. They remained flat everywhere else bar the Out-

er Rim, where they increased by 25 bps.

With a weak GDP and worsening employment outlook,

we do not expect a recovery in demand for offices in

2013. Prime rents will continue to fall in La Défense

and Western Crescent and stay flat everywhere else at

best. Average rents will continue to soften throughout

the region.

Sovereign wealth fund activity will persist during 2013

and prime Paris Centre West yields are therefore likely

to fall this year. Prime yields in other submarkets, on

the other hand, are likely to increase slightly given the

expected stagnation in rents and rising trend in bond

yields. In the Western Crescent and La Défense, they

are likely to see a more important upward trajectory in

2013 due to worsening fundamentals.

Housing Market France weathered the Big Recession better than many

other countries. Prudent lending practices and con-

servative construction levels helped prevent the excess-

es that destabilised other countries’ financial systems

and economies. Second-hand apartment prices only fell

by around ten per cent during 2008-2009. Due to strong

fundamentals, once economic growth returned during

2010-2011, so did price growth.

In Paris, second-hand apartment prices literally soared

during 2010-2011, principally due to a marked safe-

haven effect and particularly weak supply. The north-

ward trend in prices seems to have come to an end in

2012, however, as the same factors that had a negative

effect on the office market made consumers wary of

such a big investment such as buying a house. Adding

to this, a plethora of tax increases have been introduced

to balance the government’s budget, many of which

target the housing market. Also, in spite of low interest

rates, lending standards are reported to be tightening.

Residential transaction levels are therefore significantly

down on an annual basis. During 2012, prices have re-

mained rather sticky, however. The French housing

market does not have many ‘forced sales’ and vendors

are currently not prepared to lower their asking prices.

Buyers, on the other hand, are biding their time and

have become more picky. At the end of 2012, residen-

tial prices have finally begun heading South. In Paris,

second-hand apartment prices fell by two per cent in

the fourth quarter of 2012 compared to the previous

quarter, and in the Paris Region they fell by 1.4 per

cent.

With a stagnant French economy in 2013, an unem-

ployment rate that will continue to creep up and taxes

being more of a burden to consumers, housing sales are

likely to remain depressed. In Paris in particular, prices

are still very high, which is a deterrent for many. Credit

Agricole Economic Research forecast a 5-6 per cent

decline in second-hand residential prices nationally in

2013, and a fall of 3 per cent in second-hand apartment

prices in Paris (from end 2012 to end 2013). There will,

of course, be local variations.

The economic risks in France are, however, to the

downside. If they materialise, real estate price declines

could be more marked and incur over a longer period.



Office market Economic context France weathered the Big Recession better than many

other countries, being spared the credit-financed hous-

ing boom and bust that so rattled the US, the UK, Ire-

land and Spain. The banking system has its weaknesses

but nothing on the scale of what has been seen in the

European countries that have sought financial aid from

the European Union. Moreover, deleveraging and the

raising of capital ratios is well underway in France.

France’s economic problems lie mostly in the country’s

lack of competitiveness. It is not as dependent on ex-

ports as is Germany for instance, but it is nevertheless

more open than the US. In the current business cycle,

where private and public consumption are depressed

and investments are weak, the external sector is the area

that could bring some fizz to Europe’s ailing econo-

mies.

France’s main export destination is the EU and, within

the EU, France exports relatively more to the Union’s

Southern European members than do other union adher-

ents – twice as much as do Belgium and the Nether-

lands for instance.1 Overall, almost two thirds of French

exports are to EU destinations, thus leaving a relatively

smaller minority share for the faster growing markets in

developing Asia. In addition to this structural vulnera-

bility to the EU business cycle, France has lost competi-

tiveness over the 1997-2011 period. The IMF calculates

that France is among the advanced countries that have

seen their share of world exports decline the most, both

in terms of goods and services.2 It is thus crucial for

France’s economic growth that competitiveness is re-

stored and that new export markets are developed.

France: Government Budget Deficit

Source: Factset

In addition to the competitiveness gap, France has a

structural financial problem. For over 30 years, the

country has not had a single year of budget surplus. It

has thus accumulated a hefty stock of debt over the

years, rising from some 20 per cent of GDP in the early

1980s to around 90 per cent currently.3

Not surprisingly, France has high structural unemploy-

ment. Since the early 1980s the unemployment rate has

not dipped below seven per cent. It now stands at 10.6

per cent, with the youth unemployment rate at over 25

per cent for young women and just under 25 per cent

for young men.4 With a relatively high minimum wage

by international standards (60 per cent of the median

wage in France compared to some 47 per cent in the

UK and under 40 per cent in the US5), it is clear that the

barrier to hire young and inexperienced workers is sig-

nificant.

100,000 temporary jobs were destroyed from Q3 2011

to Q4 2012. According to Oxford Economics, agency or

‘interim’ workers account for about 3 per cent of the

private sector workforce and the evolution of their num-

bers is a good indicator of business sentiment vis-à-vis

employment. Since France is facing pressure from Eu-

rope to speed up budget cuts, the public sector will

struggle to create jobs to make up for those that have

been lost in the private sector.

Evolution of Temporary Work Posts in France

Source: INSEE

Luckily for France, the savings ratio stands at over 16

per cent. The high savings ratio is highlighted when

compared against for example the Japanese, who in the

past were equally keen on setting funds aside for a rainy

day, but have now seen a spectacular drop in savings.

The high savings ratio is a potential arrow in the

French’s quiver – were they to draw down on their sav-

ings, personal consumption could add positively to

growth. Such a break with past behaviour looks unlike-

ly this year though, given the high current rate of unem-

ployment.

-250

-200

-150

-100

-50

0

50

100

150

Q1

199

1

Q4

199

1

Q3

199

2

Q2

199

3

Q1

199

4

Q4

199

4

Q3

199

5

Q2

199

6

Q1

199

7

Q4

199

7

Q3

199

8

Q2

199

9

Q1

200

0

Q4

200

0

Q3

200

1

Q2

200

2

Q1

200

3

Q4

200

3

Q3

200

4

Q2

200

5

Q1

200

6

Q4

200

6

Q3

200

7

Q2

200

8

Q1

200

9

Q4

200

9

Q3

201

0

Q2

201

1

Q1

201

2

Q4

201

2

Th

ou

sa

nd

s (

leve

ls c

um

ula

ted

ove

r fo

ur

qu

art

ers

)

-8

-7

-6

-5

-4

-3

-2

-1

0

Dec-9

3

Ap

r-94

Au

g-9

4

Dec-9

4

Ap

r-95

Au

g-9

5

Dec-9

5

Ap

r-96

Au

g-9

6

Dec-9

6

Ap

r-97

Au

g-9

7

Dec-9

7

Ap

r-98

Au

g-9

8

Dec-9

8

Ap

r-99

Au

g-9

9

Dec-9

9

Ap

r-00

Au

g-0

0

Dec-0

0

Ap

r-01

Au

g-0

1

Dec-0

1

Ap

r-02

Au

g-0

2

Dec-0

2

Ap

r-03

Au

g-0

3

Dec-0

3

Ap

r-04

Au

g-0

4

Dec-0

4

Ap

r-05

Au

g-0

5

Dec-0

5

Ap

r-06

Au

g-0

6

Dec-0

6

Ap

r-07

Au

g-0

7

Dec-0

7

Ap

r-08

Au

g-0

8

Dec-0

8

Ap

r-09

Au

g-0

9

Dec-0

9

Ap

r-10

Au

g-1

0

Dec-1

0

Ap

r-11

Au

g-1

1

Dec-1

1

% o

f G

DP



Household Savings Ratio: France and Japan

Source: Factset

Investments are not apt to increase much in the near

future. Capacity utilisation is at the lowest level during

the past 30 years barring the 2008-2009 recession. In-

vestments tend to increase when the capacity use is over

80 roughly speaking, and it now stands at 75. Neverthe-

less, investment levels remain positive and contributed

0.7 percentage points to growth in the fourth quarter of

2012.

France: Capacity Utilisation and Total Investment

Source: Factset

Office Demand Paris Region Office Net Absorption

Source: CBRE

Demand for office space in the Paris Region (see map

on page 12) was relatively resilient during the recession

of 2008-2009. This has been largely attributed to the

diversified economic base of the region. The worsening

Eurozone crisis, economic slowdown, political and tax

uncertainty finally caught up with the occupier market

during 2012, however. Office tenants postponed their

relocation plans and reassessed space requirements, and

in many cases have extended their leases at lower rents.

The poor net absorption (the level change in occupied

stock6) figure for 2012 (24,000m2), which is way below

the long-term average of 726,000 m2, is a reflection of

this. Net absorption measures ‘real’ demand, because

unlike take-up, it takes into account space given back to

the market.

Large companies in the Paris Region have been reduc-

ing overhead costs by decreasing the amount of office

space used per employee. This is often achieved in

modern office buildings that offer ‘open plan’ seating

solutions. Companies have also sought cost reductions

by moving to cheaper locations. This has been detri-

mental to more expensive submarkets and submarkets

without the type of supply that occupiers are looking

for. In 2008 and 2009, for example, Paris Centre West

experienced significant negative net absorption

(240,000 m2). Small and medium-sized occupiers, very

present in this submarket, were hit hard by the Global

Financial Crisis and Big Recession. Large corporate

occupiers have also been actively regrouping staff from

central, expensive, often old, disparate offices in central

locations to cheaper, new offices in the Inner Rim sub-

market.7 This resulted in the vacancy rate of Paris Cen-

tre West increasing from three per cent in the first quar-

ter of 2008 to 6.2 per cent in the fourth quarter of 2009,

leading to a decrease in prime and average rents here

during this period.

Paris Region: Take up by Submarket

Source: CBRE

0

500

1000

1500

2000

2500

3000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Th

ou

sa

nd

sq

ua

re m

etr

es

Inner Rim Northern Paris Outer Rim Paris Centre West

La Défense Southern Paris Western Crescent

Long-term average

-500

0

500

1000

1500

2000

2500

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Th

ou

san

d s

qu

are

me

tre

s

Inner Rim Northern Paris Outer Rim Paris Centre West

Paris La Défense Southern Paris Western Crescent Paris Region

-5

0

5

10

15

20

25

Mar

-66

Mar

-67

Mar

-68

Mar

-69

Mar

-70

Mar

-71

Mar

-72

Mar

-73

Mar

-74

Mar

-75

Mar

-76

Mar

-77

Mar

-78

Mar

-79

Mar

-80

Mar

-81

Mar

-82

Mar

-83

Mar

-84

Mar

-85

Mar

-86

Mar

-87

Mar

-88

Mar

-89

Mar

-90

Mar

-91

Mar

-92

Mar

-93

Mar

-94

Mar

-95

Mar

-96

Mar

-97

Mar

-98

Mar

-99

Mar

-00

Mar

-01

Mar

-02

Mar

-03

Mar

-04

Mar

-05

Mar

-06

Mar

-07

Mar

-08

Mar

-09

Mar

-10

Mar

-11

% d

ispo

sabl

e in

com

e

France Japan

16

17

18

19

20

21

22

23

24

65

70

75

80

85

90

De

c-8

1

Au

g-8

2

Ap

r-83

De

c-8

3

Au

g-8

4

Ap

r-85

De

c-8

5

Au

g-8

6

Ap

r-87

De

c-8

7

Au

g-8

8

Ap

r-89

De

c-8

9

Au

g-9

0

Ap

r-91

De

c-9

1

Au

g-9

2

Ap

r-93

De

c-9

3

Au

g-9

4

Ap

r-95

De

c-9

5

Au

g-9

6

Ap

r-97

De

c-9

7

Au

g-9

8

Ap

r-99

De

c-9

9

Au

g-0

0

Ap

r-01

De

c-0

1

Au

g-0

2

Ap

r-03

De

c-0

3

Au

g-0

4

Ap

r-05

De

c-0

5

Au

g-0

6

Ap

r-07

De

c-0

7

Au

g-0

8

Ap

r-09

De

c-0

9

Au

g-1

0

Ap

r-11

De

c-1

1

Au

g-1

2

% o

f GD

P

%

Total Capacity Utilisation Rate, Industry. S.A. (LHS) Total Investment (RHS)



In this weakened economic context, office take-up,

which represents the total net floor space let, pre-let,

sold or pre-sold to tenants or owner-occupiers,8 was

boosted in 2011 and 2012 by some very large deals

(often initiated well in advance). These include the ac-

quisition for owner-occupation of 124,000m2 in St Den-

is (Inner Rim submarket) by SFR, Carrefour renting

85,000m2in Massy (Outer Rim), Thalès’s turnkey9 deal

of 78,600 m2 in Gennevilliers (Western Crescent sub-

market) and France Télécom’s turnkey deal of

69,100m2 in Chatillon (Inner Rim submarket).

The space-optimisation fashion espoused by large cor-

porations has benefitted submarkets accessible to cen-

tral Paris that propose new energy-efficient buildings

with lower rents and potential long-term cost efficien-

cies for the occupier. The Inner Rim, in particular, saw

take-up increase by 44 per cent from 2011 to 2012.

According to CBRE, more than 60 per cent of occupier

deals over 5,000m2 in 2012 were pre-sales and pre-lets,

which means that the types of properties that larger oc-

cupiers are targeting, are not often readily available in

the desired localities. The same source reports that new

and redeveloped offices accounted for 41 per cent of

take-up in 2012, compared to renovated offices (27 per

cent) and second-hand offices (32 per cent). Given this,

investment in the development of new buildings that

meet current occupier requirements and are well located

could be regarded as an opportunity. According to a

survey of 200 corporate occupiers carried out by Ipsos

for BNP Paribas Real Estate, 55 per cent of respondents

are considering a move in the short-to medium-term,

even if the business climate is frozen.10

Take-up in 2012 was also boosted by a couple of very

large deals originating from the public sector. Accord-

ing to CBRE, this sector accounted for 20 per cent of

the total in 2012, mainly due to an 135,000 m² office

development by the Ministry of Defense in the 15th ar-

rondissement of Paris. By comparison, the finance and

insurance sector was very quiet during the year (6 per

cent). The broadly-defined industry sector, which ac-

counted for 30 per cent of take-up and the transport/

logistics/distribution sector (16 per cent) took up the

baton, however. More than 30 per cent of Fortune 500

companies are represented in the Paris Region. The di-

versified international occupier base of the region al-

lows for continually robust take-up levels, as well as

lower rental volatility than, for example, London.11

Supply

Another strength of the Paris Region office market is

that it has a relatively controlled supply pipeline. An

office construction boom that resulted from the relaxa-

tion of planning laws from 1985 to 1990 resulted in va-

cancy rates rising from 3 to 12 per cent. Planning laws

were tightened in 199012 and since, the Paris Region

office market has witnessed under two per cent of total

office stock complete each year.

Annual Forecast Completions as a Percentage of Total Submarket Stock (Q4 2012)

Source: CBRE

Some submarkets are expecting more new completions

than the average over the next two years, however, no-

tably La Défense. In 2013 we can expect the refurbish-

ment of Tour Eqho (78,000m2) to finish and the con-

struction of Carpe Diem (44,000m2) to complete. Tour

Majunga (63,000m2) and Tour D2 (45,000m2) are ex-

pected to deliver in 2014.13 These buildings are still

without occupiers at a time when there is a preference

from the part of large occupiers for low-rise, environ-

mentally-certified, campus-style buildings with cheaper

rents. Tour First, the tallest office building in France

(80,200m2), which completed in 2011, still has to fill up

the remaining 20 per cent of its space.14 Although La

Defénse is next to central Paris, its popularity is dimin-

ished by the fact that transport links to and from the

business district are saturated and rents here are higher

than in the Inner Rim.

Vacancy Vacancy Rate by Submarket

Source: CBRE

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

Paris Centre West Outer Rim Southern Paris Ile-de-France Northern Paris Western Crescent Inner Rim Paris La Défense

2013 2014

0

2

4

6

8

10

12

Northern Paris Southern Paris Paris Centre West Outer Rim Paris Region Paris La Défense Inner Rim Western Crescent

Pe

r ce

nt

Q4 2009 Q4 2010 Q4 2011 Q4 2012



The office vacancy rate in the Paris Region is one of the

lowest in Europe, and has been more or less stable at

around 6.5 per cent since the third quarter of 2011. The

vacancy rate varies significantly by submarket, howev-

er. The lowest can be found in the central Paris submar-

kets of Northern Paris, Southern Paris and Paris Centre

West, and the highest in the Western Crescent and Inner

Rim. The gap between the lowest and the highest has

actually widened in recent quarters.

Outside central Paris, the obsolescence of vacant supply

is becoming an issue due to advancing workplace re-

quirements and evolving employer requirements.15 This

is worsened by increasing environmental legislation.

According to the Observatoire Régional de l’Immobilier

d’Entreprise en Ile-de-France (ORIE), in 2005 12 per

cent of vacant buildings have been vacant for four years

or more. This percentage increased to 18 per cent in Q2

2012.16

Rents Paris Region Prime Office Rents by Submarket

Source: CBRE

Prime office rents17 have fallen over the past four quar-

ters in the Western Crescent and La Défense as both

submarkets have seen their vacancy rates increase. Else-

where prime rents have remained broadly stable.

Since 2011, prime rents in the 7th arrondissement of

Paris (Southern Paris submarket) have caught up to

those of the CBD. These rents have been achieved in

renovated 19th century buildings situated in prestigious

addresses. At €830 per m2 per year, prime rents in

Southern Paris are now slightly above those of the

CBD. This is due to four consecutive lettings at 23 rue

de l’Université during 2011-2012: McDermott Will &

Emery, Tai Ping Carpets, Capital Fund Management

and AT Kearney.

The 7th arrondissement of Paris has traditionally been

associated with embassies and ministry buildings, but

the French General Review of Public Policies, which

aims to reduce public spending, has led many govern-

ment entities to sell off buildings that have become ex-

pensive to refurbish to current standards. 23 rue de

l’Université, for example, was the old building of the

Custom House. Government bodies have vacated sever-

al buildings in the area, including 15, avenue de Suffren

(former home of the Planning Department) and 103, rue

de Grenelle (former home of the National Education

Ministry). Many government entities have also been

required to move to locations where rents do not exceed

€400 per m2 per year, like the Eastern Inner Rim.18

These dynamic presents opportunities for investors, be-

cause high-quality refurbished offices in prestigious

addresses in this micro-market have become a viable

alternative to the CBD for occupiers.19 According to

CBRE, companies that were based in the right bank of

Paris, have moved to the left bank of Paris in the past

two years (examples include Alcatel, Boston Consulting

Group, McDermott and Capital Fund Management).

Average Weighted Rents for New, Restructured and Renovated Office Space

Source: CBRE, Immostat

Average rents have headed South everywhere over past

year with the exception of Northern Paris. The strongest

falls since 2007 were seen in the Western Crescent (-16

per cent for new, restructured and renovated, or NRR

space and -15 per cent for second-hand space), the Inner

Rim submarket (-12 per cent for NRR space and -14 per

cent for second-hand space) and La Défense (-14 per

cent for second-hand space and -9 per cent for NRR

space).

200

300

400

500

600

700

800

900

Q4 2

00

3

Q1 2

00

4

Q2 2

00

4

Q3 2

00

4

Q4 2

00

4

Q1 2

00

5

Q2 2

005

Q3 2

00

5

Q4 2

00

5

Q1 2

00

6

Q2 2

00

6

Q3 2

00

6

Q4 2

00

6

Q1 2

00

7

Q2 2

007

Q3 2

00

7

Q4 2

00

7

Q1 2

00

8

Q2 2

00

8

Q3 2

00

8

Q4 2

00

8

Q1 2

00

9

Q2 2

00

9

Q3 2

00

9

Q4 2

00

9

Q1 2

01

0

Q2 2

01

0

Q3 2

01

0

Q4 2

01

0

Q1 2

011

Q2 2

01

1

Q3 2

01

1

Q4 2

01

1

Q1 2

01

2

Q2 2

01

2

Q3 2

01

2

Q4 2

01

2

Eu

ro p

er

sq

ua

re m

etr

e p

er

ye

ar

Inner Rim Northern Paris Outer Rim Paris Centre West Paris La Défense Southern Paris Western Crescent

90

110

130

150

170

190

210

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Ind

ex 1

00

= 1

99

8

Paris Centre West Southern Paris Northern Paris La Défense Western Crescent Inner Rim Outer Rim



Since 2007 average rents only increased in Northern

and Southern Paris (4 and 2 per cent respectively for

NRR space) and Northern Paris (1.5 per cent for second

-hand space). The fact that these two submarkets are

both central and cheaper than Paris Centre West has

been attracting occupiers. They consequently have the

lowest vacancy rates in the Paris Region. In spite of the

trend for large occupiers to regroup in modern office

buildings in the Inner Rim, cheaper submarkets in cen-

tral Paris are still attractive to small and mid-sized oc-

cupiers.

Average Weighted Rents for Second-hand Office Space

Source: CBRE , Immostat

Investment Paris Region Office Investment Volumes (excluding portfolio deals)

Source: CBRE

Although down by 18 per cent on 2011 volumes, invest-

ment in offices was stronger than expected during 2012.

International investors continued to seek the perceived

security of the Paris property market; they accounted

for 47 per cent of office investment volumes during the

year and were particularly active in the larger deals

(accounting for 79 per cent of deals over €200 mil-

lion20). International investor interest is still strong be-

cause the Paris Region continues to have relatively solid

fundamentals and is one of the most liquid office mar-

kets in the world. In addition, with the globalised nature

of occupiers, prime assets here are more resilient than

prime assets in markets where occupiers are more ex-

posed to the national economy or to one specific sec-

tor.21

Most Active Global Investment Markets - Offices Deals values over €10m reported in contract or closed in past 12 months

Source: Real Capital Analytics, 28.12.2012 European, Middle Eastern and Asian sovereign wealth

funds (SWFs) have been particularly strong players in

recent years, making very large acquisitions mainly in

core properties/locations. Globally they are increasing

their allocations to real estate and reducing their alloca-

tions to bonds22 and in general, they are equity buyers

looking to make long-term placements (e.g. 30 years).23

Abu Dhabi Investment Authority, Hong Kong Mone-

tary Authority, Qatar Investment Authority and Norges

Bank Investment Management have been particularly

active in Paris of late, but there are potentially many

other SWFs that could start buying in this market, in-

cluding China, Malaysia and Singapore.24 The recent

activity of some of these in London indicate that they

might move onto Paris next, as London is usually the

springboard for cross-border investment in Europe.

Paris Centre West and Southern Paris were the only

submarkets to witness an increase in investment vol-

umes from 2011 to 2012. This is not surprising since

they were home to two of the largest deals of the year.

The Qatar Investment Authority bought 52-60 Avenue

des Champs Elysees (building of 26,850m2) in the 8th

arrondissement from Groupama for 547 million euros

and a yield of 3.90 per cent. It also bought 90 boulevard

Pasteur (building of 30,000m2) in the 15th arrondisse-

ment for 252 million euros.25

80

100

120

140

160

180

200

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Ind

ex

10

0 =

19

99

Paris Centre West Southern Paris Northern Paris La Défense Western Crescent Inner Rim Outer Rim

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Mill

ion

Eu

ros

Northern Paris Southern Paris Paris Centre West Western Crescent La Défense Inner Rim Outer Rim

Long-term average

0

5

10

15

20

25

London Metro NYC Metro Paris Tokyo San FranciscoMetro

Hong Kong Washington DCMetro

Los AngelesMetro

Seoul SeattleB

illi

on

€



La Défense has seen weak levels of investment activity

for a number of years. Rents have been falling here for

a number of years and obsolescence is a growing prob-

lem26 as many buildings date from the 1970s and are

facing increasing environmental regulations.

Yields Prime Office Yields by Submarket

Source: CBRE

Prime office yields27 in the Outer Rim have moved out

by 25 basis points over the past quarter, otherwise they

have been flat everywhere except Paris Centre West and

Northern Paris where they compressed by 25 basis

points (to 4.25 per cent and 5.75 per cent, respectively).

Overseas money into Paris has been one factor helping

to push yields down.

With the exception of Northern Paris, where it stabi-

lised, the spread between the Paris Centre West prime

yield and the prime yield in the rest of the submarkets

of the Paris Region has continued to increase. Investors

are still targeting Paris Centre West, where the central

business district (CBD) is located. The spread between

the Outer Rim and Paris Centre West is currently the

highest it has been since we 2004. The same goes for La

Défense.

Prime Yields: Spread from Paris Centre West Submarket

Source: CBRE

Paris office market outlook Consumption is liable to make a negative contribution

to GDP this year and net exports are anticipated to not

make any contribution at all. Our forecast 0.4 per cent

growth in GDP is therefore likely to come from invest-

ments that will in all probability remain positive but

only a touch higher than in 2012. A stronger outlook

for 2014, at one per cent GDP growth, would rest essen-

tially on the elimination of the negative contribution of

consumption. In spite of this prudent outlook, the risks

to the economy remain predominantly on the downside.

A weak national GDP context and worsening employ-

ment outlook will continue to weigh on a recovery in

demand for offices in the Paris Region during 2013 as

companies continue to be in ‘cost saving’ rather than

‘expansionary’ mode. In spite of weak overall comple-

tion levels, depressed demand means that we will con-

tinue to see stagnant prime rents and weakening average

rents in most submarkets during 2013. Given higher

than average completion levels and quite a bit of obso-

lete space, both La Défense and the Western Crescent

are expected to see prime and average rents continue to

fall in 2013.

Paris Region Office Take-up versus French GDP

Source: CBRE, INSEE, CAPB

SWF and international institutional investment activity

is likely to continue in 2013. The closing and liquida-

tion of some German open-ended funds might also will

also generate investment activity. There is no particular

reason, however, for investment volumes to be stronger

in 2013 given the weakness of the occupier market. The

prime yield in Paris Centre West is likely to fall slightly

during the year, but prime yields in other submarkets

are likely to go up given the stagnation of rents and the

fact that the bond yield trend today is up rather than

down as a result of a renewed confidence in Southern

Europe and the general switch from bonds to equities,

due to the latter’s strong performance. Prime yields in

the Western Crescent and La Défense are very likely to

continue to increase in 2013 given weakening funda-

mentals.

3.00

3.50

4.00

4.50

5.00

5.50

6.00

6.50

7.00

7.50

8.00

Q3

200

4

Q4

200

4

Q1

200

5

Q2

200

5

Q3

200

5

Q4

200

5

Q1

200

6

Q2

200

6

Q3

200

6

Q4

200

6

Q1

200

7

Q2

200

7

Q3

200

7

Q4

200

7

Q1

200

8

Q2

200

8

Q3

200

8

Q4

200

8

Q1

200

9

Q2

200

9

Q3

200

9

Q4

200

9

Q1

201

0

Q2

201

0

Q3

201

0

Q4

201

0

Q1

201

1

Q2

201

1

Q3

201

1

Q4

201

1

Q1

201

2

Q2

201

2

Q3

201

2

Q4

201

2

Pe

r c

en

t

Inner Rim Northern Paris Outer Rim Paris Centre West Paris La Défense Southern Paris Western Crescent

0

50

100

150

200

250

300

Q3

200

4

Q4

200

4

Q1

200

5

Q2

200

5

Q3

200

5

Q4

200

5

Q1

200

6

Q2

200

6

Q3

200

6

Q4

200

6

Q1

200

7

Q2

200

7

Q3

200

7

Q4

200

7

Q1

200

8

Q2

200

8

Q3

200

8

Q4

200

8

Q1

200

9

Q2

200

9

Q3

200

9

Q4

200

9

Q1

201

0

Q2

201

0

Q3

201

0

Q4

201

0

Q1

201

1

Q2

201

1

Q3

201

1

Q4

201

1

Q1

201

2

Q2

201

2

Q3

201

2

Q4

201

2

Ba

sis

Po

ints

Inner Rim Northern Paris Outer Rim Paris La Défense Southern Paris Western Crescent

-4%

-3%

-2%

-1%

0%

1%

2%

3%

4%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Take-up Paris Region (y-o-y change) (LHS) Annual GDP Growth France (RHS)



Housing market Second-hand Apartment Price Index

Source: INSEE, Notaires French residential prices fell during 2008-2009 as a re-

sult of the Global Financial Crisis and Big Recession,

but only by a limited amount (10 per cent for second-

hand apartments). Prudent lending practices (in France

a loan is granted depending on the household’s capacity

to repay, credit does not exceed a third of household

income and most property loans come with fixed inter-

est rates and a maximum repayment period of 20-25

years28) and conservative construction levels helped

prevent the excesses that destabilised other countries’

financial systems and economies. France was thus

spared any hangover from a housing fiesta like Spain

and Ireland, and in general the country has strong hous-

ing fundamentals, so once economic growth returned,

so did residential price growth. From 2010 to 2011 both

the French economy and housing market recovered, and

by 2011 second-hand apartment prices were higher than

they were at their 2007 peak.

Paris Second-hand Apartment Price Index

Source: INSEE, Notaires

In Paris, second-hand apartment prices literally soared

during 2010-2011, due to a marked safe-haven effect

(investors were facing highly uncertain and volatile fi-

nancial markets) and particularly weak supply.29 The

monetary and financial contexts at the time also encour-

aged residential investment during this period.

INSEE Monthly Consumer Confidence Survey

Source: INSEE

The northwards trend in prices seems to have come to

an end during the course of 2012, however. The same

factors that had a negative effect on the office market

(economic slowdown, rising unemployment and politi-

cal uncertainty) are currently making consumers wary

of such a big investment such as buying a house.

A plethora of tax increases have been introduced to bal-

ance the government’s budget, and many of them are

aimed at the housing market. This is another explana-

tion for the moroseness of the market of late. Frequent

fiscal changes create a sentiment of instability that

weigh down on investment projects. Changes include

the restriction of tax reductions that spurred the market

in recent years. The zero-interest loan scheme for first

time buyers is now limited to new properties and social

housing tenants who want to purchase their homes.30 In

the buy-to-let and secondary home markets, the intro-

duction of higher tax rates on capital gains and the in-

troduction of a new law announcing a ceiling limit on

rents have cooled things down considerably on the

home-buying front. Considering how high prices are,

yields have become less attractive with more taxes.31

Other changes include tax increases on vacant proper-

ties.

20

40

60

80

100

120

140

Q1

199

7

Q3

199

7

Q1

199

8

Q3

199

8

Q1

199

9

Q3

199

9

Q1

200

0

Q3

200

0

Q1

200

1

Q3

200

1

Q1

200

2

Q3

200

2

Q1

200

3

Q3

200

3

Q1

200

4

Q3

200

4

Q1

200

5

Q3

200

5

Q1

200

6

Q3

200

6

Q1

200

7

Q3

200

7

Q1

200

8

Q3

200

8

Q1

200

9

Q3

200

9

Q1

201

0

Q3

201

0

Q1

201

1

Q3

201

1

Q1

201

2

Q3

201

2

Ind

ex

Paris Ile-de-France (excluding Paris) French Regions

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

20

40

60

80

100

120

140

Q1

199

3

Q3

199

3

Q1

199

4

Q3

199

4

Q1

199

5

Q3

199

5

Q1

199

6

Q3

199

6

Q1

199

7

Q3

199

7

Q1

199

8

Q3

199

8

Q1

199

9

Q3

199

9

Q1

200

0

Q3

200

0

Q1

200

1

Q3

200

1

Q1

200

2

Q3

200

2

Q1

200

3

Q3

200

3

Q1

200

4

Q3

200

4

Q1

200

5

Q3

200

5

Q1

200

6

Q3

200

6

Q1

200

7

Q3

200

7

Q1

200

8

Q3

200

8

Q1

200

9

Q3

200

9

Q1

201

0

Q3

201

0

Q1

201

1

Q3

201

1

Q1

201

2

Q3

201

2

Ind

ex

Paris Secondhand Apartment Price Index (LHS) Annual Growth (RHS)

70

80

90

100

110

120

130

Jan

-00

Ma

y-0

0

Se

p-0

0

Jan

-01

Ma

y-0

1

Se

p-0

1

Jan

-02

Ma

y-0

2

Se

p-0

2

Jan

-03

Ma

y-0

3

Se

p-0

3

Jan

-04

Ma

y-0

4

Se

p-0

4

Jan

-05

Ma

y-0

5

Se

p-0

5

Jan

-06

Ma

y-0

6

Se

p-0

6

Jan

-07

Ma

y-0

7

Se

p-0

7

Jan

-08

Ma

y-0

8

Se

p-0

8

Jan

-09

Ma

y-0

9

Se

p-0

9

Jan

-10

Ma

y-1

0

Se

p-1

0

Jan

-11

Ma

y-1

1

Se

p-1

1

Jan

-12

Ma

y-1

2

Se

p-1

2

Jan

-13

Ind

ex

Long-term average



Average Lending Rates (bank loans only)

Source: Observatoire du Financement des marchés Résidentiels - Crédit Loge-ment / CSA

In spite of low interest rates (the average lending rate

was 3.29 per cent in Q4 2012 according to the Observa-

toire du Financement des Marchés Résidentiels), lend-

ing standards practiced by French banks have tightened

slightly in Q4 2012. According to CBRE, loans have

become more difficult to obtain, in particular, the de-

posit required has gone up to 15-20 per cent of the val-

ue of the property, against 10-15 per cent demanded

previously. Notaires de Paris have also seen an increase

in loans refusals. The consequence is that demand for

new housing loans has been heading South, although

the low points seems to have been reached in May

2012.

Bank Lending Survey - Lending Standards in France Loans to Households for House Purchase (Previous three months)

Source: Bank of France

According to Notaires de Paris, transactions of second-

hand apartments in Paris during the last quarter of 2012

stood at 5,930, which was only just above the 5,730

apartments sold during Q4 2008 (the middle of the re-

cession). During 2012, 27,690 apartments were sold in

Paris, which was 10 per cent lower than the levels trans-

acted during 2011, and only just above the 26,540

apartments sold during 2009 (the weakest year since

1996). The same source states that from 2000 to 2010

the average annual number of second-hand apartments

sold in Paris stood at 36,700. The Paris Region saw

roughly the same decline in the sale of second-hand

apartments from 2011 to 2012 as Paris itself (11%).

Second-hand house transactions fell by 14% in the Paris

Region.

The decline in transactions of new apartments from

2011 to 2012 was even stronger (although the new

apartment segment is only 20 per cent of the Paris Re-

gion and 3 per cent of Paris). It was -24 per cent in Paris

and -17 per cent for the Paris Region. New houses in

the Paris Region were the worst hit from 2011 to 2012

(-28 per cent).32

France: Second-hand Residential Sales

Sources: CGEDD, Notaires, CASA

Second-hand transaction levels are down but they have

not collapsed entirely, as the market still has robust de-

mand drivers. These include the decreasing size of

households through social changes like ageing and a

general trend for decreased cohabitation, the fact that

people still want to own and to prepare for their retire-

ment and the fact that France attracts international buy-

ers looking for quality of life. Interest rates are also cur-

rently at the lowest they have ever been, which can only

support housing sales.

Monthly New Lending for House Purchases - France

Source: Bank of France

2.5

3.0

3.5

4.0

4.5

5.0

5.5

Q1

200

3

Q2

200

3

Q3

200

3

Q4

200

3

Q1

200

4

Q2

200

4

Q3

200

4

Q4

200

4

Q1

200

5

Q2

200

5

Q3

200

5

Q4

200

5

Q1

200

6

Q2

200

6

Q3

200

6

Q4

200

6

Q1

200

7

Q2

200

7

Q3

200

7

Q4

200

7

Q1

200

8

Q2

200

8

Q3

200

8

Q4

200

8

Q1

200

9

Q2

200

9

Q3

200

9

Q4

200

9

Q1

201

0

Q2

201

0

Q3

201

0

Q4

201

0

Q1

201

1

Q2

201

1

Q3

201

1

Q4

201

1

Q1

201

2

Q2

201

2

Q3

201

2

Q4

201

2

Pe

r ce

nt

-30%

-20%

-10%

0%

10%

20%

30%

40%

200

2Q

4

200

3Q

1

200

3Q

2

200

3Q

3

200

3Q

4

200

4Q

1

200

4Q

2

200

4Q

3

200

4Q

4

200

5Q

1

200

5Q

2

200

5Q

3

200

5Q

4

200

6Q

1

200

6Q

2

200

6Q

3

200

6Q

4

200

7Q

1

200

7Q

2

200

7Q

3

200

7Q

4

200

8Q

1

200

8Q

2

200

8Q

3

200

8Q

4

200

9Q

1

200

9Q

2

200

9Q

3

200

9Q

4

201

0Q

1

201

0Q

2

201

0Q

3

201

0Q

4

201

1Q

1

201

1Q

2

201

1Q

3

201

1Q

4

201

2Q

1

201

2Q

2

201

2Q

3

201

2Q

4

Ba

lan

ce

of re

sp

on

se

s (

rep

ort

ed

tig

hte

nin

g m

inu

s r

ep

ort

ed

lo

ose

nin

g o

f cre

dit

sta

nd

ard

s)

> 0 = Tightening of lending standards

< 0 = Weakening of lending standards

0

50

100

150

200

250

Q1

200

3

Q2

200

3

Q3

200

3

Q4

200

3

Q1

200

4

Q2

200

4

Q3

200

4

Q4

200

4

Q1 2

005

Q2

200

5

Q3

200

5

Q4

200

5

Q1

200

6

Q2

200

6

Q3

200

6

Q4

200

6

Q1

200

7

Q2

200

7

Q3

200

7

Q4

200

7

Q1

200

8

Q2

200

8

Q3

200

8

Q4

200

8

Q1

200

9

Q2

200

9

Q3

200

9

Q4

200

9

Q1

201

0

Q2

201

0

Q3

201

0

Q4

201

0

Q1

201

1

Q2 2

011

Q3

201

1

Q4

201

1

Q1

201

2

Q2

201

2

Q3

201

2

Estim

ate

d Q

ua

rte

rly V

olu

mn

es (

Th

ou

sa

nd

Units)

-40%

-20%

0%

20%

40%

60%

80%

0

20000

40000

60000

80000

100000

120000

140000

160000

180000

Jan

uary

20

04

Ap

ril 2

00

4

July

20

04

Octo

be

r 20

04

Jan

uary

20

05

Ap

ril 2

00

5

July

20

05

Octo

be

r 20

05

Jan

uary

20

06

Ap

ril 2

00

6

July

20

06

Octo

be

r 20

06

Jan

uary

20

07

Ap

ril 2

00

7

July

20

07

Octo

be

r 20

07

Jan

uary

20

08

Ap

ril 2

00

8

July

20

08

Octo

be

r 20

08

Jan

uary

20

09

Ap

ril 2

00

9

July

20

09

Octo

be

r 20

09

Jan

uary

20

10

Ap

ril 2

01

0

July

20

10

Octo

be

r 20

10

Jan

uary

20

11

Ap

ril 2

01

1

July

20

11

Octo

be

r 20

11

Jan

uary

20

12

Ap

ril 2

01

2

July

20

12

Octo

be

r 20

12

Jan

uary

20

13

Eu

ro M

illi

on

s -

Cu

mu

late

d o

ve

r o

ne

ye

ar

Level (LHS) Year-on-year growth (RHS)



During 2012 prices have remained rather sticky in spite

of lower transaction levels. According to Century21,

unless a forced sale takes place because of a divorce,

death or the owners moving countries, current owners

do not have to sell, and therefore are not prepared to

accept to lower their asking prices. Prudent lending

practices and a fairly rigid labour market means that

forced sales like we have seen elsewhere have not been

replicated in France. Buyers have also become more

selective. The average number of days it took to sell a

property in Paris increased by 15 days from 2011 to

2012, reaching 59. In the Paris Region it took 13 days

longer to sell a property in 2012 from 2011, or an aver-

age of 77 days. A lack of investment alternatives and

less favourable taxation are also not encouraging people

to sell or accept lower prices.

At end 2012, prices have begun heading South. Accord-

ing to Notaires de Paris, second-hand apartment prices

in Paris fell by two per cent in quarterly terms in the

fourth quarter of 2012, and in the Paris Region they fell

by 1.4 per cent. In annual terms, prices in Paris fell by 1

per cent and in the Paris Region they fell by 0.6 per

cent. Second-hand houses saw smaller price falls in the

Paris Region.

The performance of the Paris Region residential market

is very diversified. For example, in Paris itself, the

strongest median price falls of second-hand apartments

from 2011 to 2012 were witnessed in the 7th arrondisse-

ment (-4.8 per cent, median price in Q4 2012 of

€11,740 per square metres), 20th arrondissement (-4 per

cent, median price of €6,900) and 16th arrondissement (-

3.8 per cent, median price of €9,550). Over the same

period, the strongest median price increase were found

in the 10th (+5.2 per cent, median price of €7,720), the

2nd (+4.6 per cent, median price of €10,000) and the 8th

(+2.5 per cent, median price of €10,560).33

According to CBRE, there has been a two-speed market

for high-end properties. For properties between €2 and

€5 million, the volume of sales have dropped substan-

tially as buyers have become more picky. French resi-

dents, in particular have become very concerned about

taxes. Conversely, the market for properties over €5

million has stayed quite active. This part of the market

is dominated by non-residents who are not dependent

on financing. Uncertainty surrounding the tax status of

non-residents has, however, had an impact in this seg-

ment of the market as well. We should remember, how-

ever the that high end of the market only accounts for

about 1.5 per cent of total sales in Paris.34

Residential market outlook The French economy is expected to remain stagnant in

2013 (we project GDP growth to be 0.4 per cent during

the year), which means that the unemployment rate will

continue to creep up. French consumers are very sensi-

tive to the job market situation and tax increases are

reducing their spending capacity even further. All these

factors will continue to have a negative impact on the

housing market. We expect housing sales in 2013 to

remain weak both nationally and in Paris. In Paris pric-

es are very high, which is a deterrent for many to buy

(in certain neighbourhoods, prices increased by over 40

per cent over the past five years). According to Credit

Agricole Economic Research, households have been

compromising on size and location to be able to buy in

this market. There is a limit to how much households

can concede, however, since debt repayments cannot

exceed one third of income and interest rates are cur-

rently at historically low levels.

Given this context, Credit Agricole Economic Research

forecasts a 5-6 per cent decline in second-hand residen-

tial prices nationally in 2013 and a 3 per cent fall in Par-

is second-hand apartment prices (end 2012 to end

2013). Globally speaking, however, the decline in resi-

dential prices is expected to be limited in France since

the country’s housing market is not in a logic of ‘forced

sales’ and fundamentals are considered to be robust.

There will, of course, be local variations.

The economic risks in France are to the downside, how-

ever. If they materialise, house price declines might be

more marked and incur over a longer period than ex-

pected.



Sources

1Eurostat data

2 IMF, “France : Selected Issues”, IMF Country Report No. 13/3, January 2013

3 IMF data

4 Eurostat, total unemployment, mainland and territories

5 ILO data

6 CBRE definition

7 Catella, “Property Market Trends, France” March 2012

8 CBRE definition

9 According to CBRE, “a transaction concluded when the building is still a project or under construction, but whose structure will be modified to suit the needs

of the occupier”.

10 “Un marché paradoxal”, p. 3, Les Echos, 12 March 2013

11 <http://www.joneslanglasalleblog.com/the-investor/insights-and-outlooks/paris-ample-opportunities-for-cross-border-investment>

12 Nappi-Choulet, I, “The Paris Office Market Crisis”, February 1996

<http://knowledge.wharton.upenn.edu/papers/479.pdf>

13 Deloitte Drivers Jonas, “Crane Survey: Paris Offices”, Winter 2012

<http://www.deloitte.com/assets/Dcom-France/Local%20Assets/Documents/Votre%20Secteur/Immobilier/Etude_Paris_Crane_Survey_12_2012.pdf>

14 “La tour First fait la pluie et le beau temps”, Le Parisien, 19.12.2012

<http://www.leparisien.fr/hauts-de-seine-92/la-tour-first-fait-la-pluie-et-le-beau-temps-19-12-2012-2419433.php >

15 “Europe’s Office Buildings facing Greater Obsolescence, Value Depreciation than Ever Before”. World Property Channel, 30 April 2012

<http://www.worldpropertychannel.com/europe-commercial-news/european-office-market-report-jones-lang-lasalle-offices-2020-research-programme-office-

building-obsolescence-europe-commercial-property-depreciation-eurozone-debt-crisis-5582.php>

16Les Echos: Immobilier Special MIPIM, Mardi 12 Mars 2013, page 2.

17 According to CBRE, “the prime rent should represent the ‘achievable’ open market headline rent which a blue chip occupier would be expected to pay for: an office unit

of standard size commensurate with demand in each location… an office unit of the highest quality and specification…and office unit within the prime location (CBD, for

example) of a market. It is assumed that the occupier will also be agreeing to a package of incentives that is typical of the market at the time.”

18 CBRE, “La Rive Gauche de Paris dans un nouvel élan”, Sabine Echalier, Mars 2012.

<http://www.cbre.fr/fr_fr/etudes/viewpoint/view_point_content/view_point_left/viewpoint_rive_gauche_2012.pdf>

19 “A Paris, l'Etat vend ses bijoux de famille, les entreprises s'y installent”, Challenges, 12 September 2011

<http://www.challenges.fr/finance-et-marche/20110912.CHA4109/immobilier-parisien-l-etat-vend-ses-bijoux-de-famille-les-entreprises-s-y-installent.html>

20CBRE data

21 “Sovereign wealth property could reach 20% of assets”, Property Investor Europe, p.18, Vol. 9 ed. 293 March 2013

22 Ibid.

23 <http://www.lettrem2.com/edito.php?id=114>

24 Ibid.

25 CBRE data

26 <http://www.propertyeu.info/peu_storage_root/PEU12-MA06-068-BRIEFING-FRANCE.pdf>

27 According to CBRE, 'prime yield' "represents the yield which an investor would receive when acquiring a grade/class A building in a prime location (CBD,

for example), which is fully let at current market value rents".

28 “French Real Estate: A Little Bubbly”, Wall Street Journal, 14 September 2011,

<http://online.wsj.com/article/SB10001424053111903532804576568573122088718.html>

29 CASA Economic Research

30 Global Property Guide

31 CBRE, Residential France, Market View, January 2013

32 Chambre des Notaires de Paris

33Ibid.

34 CBRE, Residential France, Market View, January 2013

http://online.wsj.com/article/SB10001424053111903532804576568573122088718.html



Paris Region office submarkets

Source: Immostat / CBRE *Data points refer to Q4 2012



© 2012, CREDIT AGRICOLE (SUISSE) SA all rights reserved This document has been prepared by the Real Estate Operations department of Crédit Agricole (Suisse) SA. The information contained herein is based on indications provided by third parties which have not been independently verified by Crédit Agricole (Suisse) SA. No guaranty, representation or warranty (express or implied) can be given that such information is current, accurate or complete. In particular, no guaranty, representation or warranty (express or implied) can be given that the price mentioned herein (if any) reflects the fair value or the market price and that any report on the valuation of the object is current, accurate or complete. Internet transmission cannot guarantee the information's security and integrity and the Bank excludes all liability in this respect. This document is for information purposes only and shall not be construed as an offer, invitation or solicitation to purchase the object or as an investment, legal, audit, tax or other professional advice. Crédit Agricole (Suisse) SA may at any time modify this document or stop producing or updating this document. Crédit Agricole (Suisse) SA may have issued or issue in the future other documents that are inconsistent with, and reach different conclusions from, the information presented in this document. Crédit Agricole (Suisse) SA is under no obligation to ensure that such other documents are brought to the attention of any recipient of this document. This document may not be photocopied or otherwise reproduced, distributed or reused without the prior written consent of Crédit Agricole (Suisse) SA. None of the material, nor its content, nor any copy of it, may be altered in any way, transmitted to, copied or distributed to any other party without the prior express written consent of Crédit Agricole (Suisse) SA. Crédit Agricole (Suisse) SA is not responsible for the information contained in this document. To the extent permitted by applicable laws and regulations, Crédit Agricole (Suisse) SA accepts no liability whatsoever for any direct or consequential loss arising from the use of this document or its content.