The Federation of Real Estate Developers (FPI) on Thursday called on the government to put in place an exceptional tax measure, short-lived to deal with the fall in activity in new real estate.
We have never had such a bad year, lamented at a press conference the president of the FPI, Pascal Boulanger. Caught between rising construction costs and declining buyer purchasing power, due to rising interest rates, developers saw their sales plummet at the end of 2022.
Over the whole of 2022, new housing reservations recorded by the REIT fell by a quarter (24.6%), and even by more than a third (36.3%) in the fourth quarter. Their level is lower than 2020, already an exceptionally sluggish year due to the pandemic and confinements.
A supply crisis and a demand crisis
We have been experiencing, since December, both a supply crisis and a demand crisis, regretted Pascal Boulanger. I think that he is time to propose a short, exceptional fiscal measurehe said.
It could start on May 1 and end on December 31, because the machine is completely flu, broken down. This is our request: exceptional situation, exceptional measure, he added.
The machine is totally flu, broken down
Pascal Boulanger cited as an example a amplified zero rate loana lower VAT for owner-occupiers… or exemption from inheritance tax on new homes purchaseda measure already taken in 1993-94 under the government of Edouard Balladur.
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I know, it’s not in the spirit of the times, he said, acknowledging that this last measure would mainly benefit the richest. Alright, but what do we do? L, we’re down!
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