Hexaom, the French number one in the construction of individual houses, forecasts a drop of “25 to 30%” in its production in 2024, the sluggishness of the real estate market having sharply reduced its orders, it said on Wednesday.
The Norman group, which published its unaudited 2023 turnover – its long-awaited annual results for the end of March – announced an increase in it, on a constant basis, of 5.4% to 1.02 billion euros.
This turnover is slightly down compared to that published in 2022, Hexaom having since stopped recognizing the income from one of its renovation subsidiaries placed in liquidation.
In its core business, house construction, the group that owns the France Confort brand saw its turnover increase by 7.1%, to 867.4 million euros.
But with order intake down 40.6% in 2023, it expects a decline in its production of around 25 to 30% in 2024.
Real estate, particularly new construction, is going through a historic crisis caused, on the one hand, by rising construction costs, fueled by material inflation and stricter environmental regulations, and, on the other hand, by difficulties in accessing credit for buyers.
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The average contribution from Hexaom customers thus reaches 100,000 euros, specifies the group, or almost twice more than in 2020 when it was 54,000 euros. A sign of the borrowing difficulties encountered by buyers, but also, according to the group, of its move upmarket.
Last year, the average cost of a house stood at 166,000 euros excluding taxes, indicates the group, down slightly compared to 2022 (167,500 euros) after having soared in 2020 and 2021.
To confront this situation, Hexaom intends to develop its activity in renovation.