(AOF) – Argan is strengthening its presence in Normandy with a new project under construction in Eslettes (76), near Rouen. This 4,600 square meter building will be operated by DSV Road, under a firm 9-year lease. The French property company specializing in warehouses entered the Normandy market in 2022, with the delivery of two logistics platforms near Rouen and Caen. This will be the second collaboration between DSV and Argan, which already owns the site operated by the transport and logistics solutions organizer in Gennevilliers.
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A demand crisis
According to data from the Federation of Property Developers (FPI), the figures for the third quarter of 2022 continue to be alarming. Sales of new collective housing fell by 12.4% over one year, to 19,006 units. Over the first nine months of 2022, the decline reached 10.2%, to 72,670 units.
Reservations are also plummeting due to the collapse of bulk sales to social landlords and institutional investors. As interest rates rise, institutional investors renegotiate or halt operations. First-time buyers are penalized by the rise in rates and the tightening of the Pinel system puts off some private investors.
Due to the sharp rise in construction costs, the REIT estimates that one out of six authorized operations is ultimately not carried out for economic reasons.
Faced with this, prices are still rising: the sale prices of new collective housing increased by 5.9% throughout France in the third quarter of 2022. Ile-de-France is an exception, with a drop of 0, 9%.