‘Fragile recovery’ in French rental market
By Murray Pollok29 November 2010
The French rental association's third quarter 'Barometer' survey shows that the rental market is recovering, with revenues 9% higher than the second quarter and up 6% compared to the third quarter in 2009.
The DLR said that if rental activity continues to improve in the final quarter then the annual fall in revenues could be limited to around 1.5%, which is lower than the 5-10% fall previously anticipated for the full year 2010.
However, DLR said the recovery should be viewed cautiously. It said that the state of the French economy did not justify excessive optimism and pointed out that signs of a rebound at the end of 2009 were not sustained into early 2010.
The 6% rental revenue increase in the third quarter, year on year, follows a 2% rise in the second quarter. The preceding seven quarters all showed a decline in revenues, peaking at a 17% year on year fall in the second quarter of 2009.
DLR said that a third of the companies it surveyed anticipated increases in revenues in the fourth quarter, up from 24% in the second quarter.
The improved situation is reflected in the employment intentions of rental companies. Just over a quarter of respondents will recruit personnel in the coming months compared to just 14% in the previous quarter.
The DLR holds its annual Rental convention in Paris on 1 December. For more information, see www.dlr.fr