(AOF) – Hexaom, a specialist in the construction of individual houses and renovation, published a turnover up 6.7% to 586.1 million euros for the first half of 2023. “The market real estate remains very complex for all players in the sector.No improvement in the market is expected before 2024. In this degraded environment, the group continues to favor margins over volumes and deploy its BtoC Renovation offers in order to benefit from a more buoyant market”, specifies a press release.
In terms of outlook, Hexaom forecasts a slight increase in its 2023 production in this sector despite an expected slowdown in the second half of the year and remains confident in its ability to improve its current operating margin in 2023.
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Double punishment for the sector
The French Building Federation (FFB) recently warned of the collapse of the new housing market. Over the first eight months of 2022, sales of the new home market in the diffuse sector collapsed by 26.8% over one year. As for sales of new homes in the grouped sector, sales to individuals fell by 17.3% over one year in the first half, while sales to institutions fell by 23%. The trend is the same for the sale of collective housing, down 9.8%.
These bad trends are accompanied by a decline in public investment, while repayments of PGE begin. Due to a lack of visibility, local authorities prefer to suspend certain projects. They also have to face a drop in their resources and a significant increase in the cost of energy and works. However, the most significant investments are generally made during the third and fourth years of the local authorities’ mandate, that is to say in 2023 and 2024. This therefore represents a significant shortfall for the sector.