The number of building permits issued continued to decline in France over a twelve-month period ending in April, according to provisional data (AFP/Archives/Philippe LOPEZ)
The number of building permits issued continued to decline in France over a twelve-month period ending in April, according to provisional data published Thursday by the Ministry of Ecological Transition.
Between May 2023 and April 2024, 358,200 housing units were authorized for construction, or 17.7% less than in the previous 12 months, but permits recorded a slight tremor (+4%) compared to March 2024.
The new housing construction sector is facing a serious crisis.
Construction costs have increased due to more expensive materials and stricter environmental standards. At the same time, buyers suffered from the rise in interest rates and the reduction in public support measures for new real estate.
These factors have started to have effects on employment: several promoters have announced social plans and smaller players are filing for bankruptcy. The French Building Federation (FFB) fears 90,000 job losses by the end of 2024 in the sector, then 150,000 by mid-2025.
In detail, individual houses were the subject of 129,200 authorizations (-19.7%) between May 2023 and April 2024, while collective housing obtained 229,000 (-16.6%).
Within collective housing, residences (students, seniors, etc.) managed to significantly limit their decline, which stood at -11.1%.
Hauts-de-France and Brittany are doing a little better than the other regions of France with drops of 4.4% and 8% respectively.
The two most tense regions, Ile-de-France and Provence-Alpes-Côte d’Azur, experienced significant drops in permits issued with -21.6% and -26.4% respectively. Note the 27% drop in the Centre-Val-de-Loire region.
The number of construction sites started, which traditionally follows that of building permits, also continues to plunge with 282,400 construction starts in May 2023 and April 2024, or 22.3% less than in the previous twelve months.
Like permits, construction starts recorded a rebound in April (+9%) compared to March.
The ministry warns, however, that the construction start figures contain a significant amount of uncertainty due to disruptions in construction site opening times since the health crisis.
© 2024 AFP
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