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Paris lures 1.7b euro ME investments

DUBAI — Paris Ile de France, the economic development agency for the Paris region, Europe's largest property market attracted 1.67 billion euros worth of investment capital from Middle East investors in 2006.

The Paris region is Europe's leading business real estate market with over 100 million square metres of commercial property. The French capital has witnessed a significant increase in new investment, the total amount of investment in 2006 reached 18.6 billion euros, a level never seen before, and an increase of 56 per cent compared to 2005.

Vincent Gollain, Director of Strategy and Economic Analysis, Paris Region Economic Development Agency commented, "The Paris region is extremely dynamic and attracts significant investment from the Middle East. Assets such as diversity of rental demand, market liquidity, transparency and transaction security have all contributed to our successful track record. Inward investment flows have averaged 11.4 euros billion over the past five years."

During that period, Middle East investment has grown significantly and now represents over 9 per cent of total investment in the Paris region. This is now close to the volumes invested by German and British investors at 13 and 10 per cent respectively. However, the French themselves continue to top the investment league table with 36 per cent with the USA on 21 per cent of total investment.