French commercial property values fall

Paris: French commercial property values dropped the most in at least 12 years in 2009 as falling rents deterred investors, according to preliminary figures compiled by Investment Property Databank.

Apartment blocks, shops, offices and warehouses lost 9.3% of their value, based on the London-based research company’s semi-annual index. That included a drop of 2% in the second half, IPD said.

In 2008, French commercial-property values declined 6%, according to a separate, annual index IPD started in 1998. The credit crisis caused investment to fall last year to the lowest level since 2000, CB Richard Ellis Group Inc estimates.