sales of new housing in France at the lowest for 50 years

For reference, outside the years of the COVID, it sold an average of 125,000 new homes per year between 2017 and 2022. In 2024, the promoters produced and sold 59,000 new dwellings, half less than two years earlier, a drop illustrating again the serious crisis that shakes new real estate. These published figures, not by the promoters, but by the Ministry of Regional Planning, have made 2024 the worst year of the sector for 50 years.

The main explanation stems from the effects of the Pandemic of Covid and the war in Ukraine. There was the surge in the price of raw materials – and therefore construction costs – with repercussions on the final price of the property for customers. To which was added the outbreak of interest rates that frozen the credit market and blocked the real estate purchase projects of many households, however wishing to access the property.

Pascal Boulanger, who chairs the federation of real estate developers, explains that “As we did not sell, we did not produce new housing, so not bought land and we have reduced the number of employees “, Hence the repercussions on employment.

The boss of the Federation wants to be optimistic for 2025, but of extremely cautious optimism. According to him, the measures included in the state budget for 2025 could allow to relaunch the purchase of housing in individuals, without however reaching summits. He fears that the restart of the machine causes price increases. First of all, due to wage increases to convince the thousands of employees who left the ship to return. Then, because of the escalation which could occur on the land for sale if all the promoters recover to buy land all at the same time. Pascal Boulanger estimates that it will take two to three years to restore this machine on the way.