Building permits continue to fall in July

In July 2023, housing authorizations stood at 32.400, an increase of 2% compared to June, but a decline of 16% compared to the average level for the twelve months preceding the first confinement.

From August 2022 to July 2023, 397.600 housing units were authorized for construction, i.e. 117.300 less than during the previous twelve months (-22,8%) and 13,6% less than during the twelve months preceding the health crisis (March 2019 to February 2020).

The year 2022 was marked by a peak in permits issued, which peaked in August, due to an influx of applications filed at the end of 2021, before the entry into force of stricter environmental regulations.

Since this peak, the number of permits has settled at a level oscillating between 30 and 35.000 per month, lower than its level before the health crisis (around 40.000 per month).

Developers and builders report a crisis, caught between the rise in construction costs on the one hand and the difficulties of access to credit for buyers on the other.

The number of housing starts, which traditionally follows that of building permits, also fell with 333.100 sites started over 12 months, a drop of 13,2%, according to ministry estimates.

Illustrative image of the article via Depositphotos.com.