Icade sees a "tremor" of recovery in the new housing market

At the end of September 2024, the group's development division posted housing reservations up 9,6% over one year, for an amount of 762 million euros (+2,3%).

It is mainly individuals who are returning to the new property market, thanks to the drop in interest rates: reservations by individuals increased by 9,8% over the first nine months of the year, after falling by 6% in the first half of the year and by 37% in 2023.

"This tremor is supported by the drop in borrowing rates," Christelle de Robillard, financial director of Icade, stressed to AFP.

She notes "positive signals" in the promotion activity but "the group remains cautious", given a real estate market which remains "uncertain and volatile".

Icade indicates that residential property reservations - made by private or institutional buyers - are down 20% in the third quarter for all market players.

These market conditions, "less favorable than in 2023", have pushed Icade to lower its prices by 10% to 15%, which is slowing the growth of revenues in its development branch.

Also an office property company, Icade saw its rental income for the first nine months of the year increase by 3,6% at constant scope, compared to last year.

For the full year 2024, the group expects its net current cash flow - its benchmark indicator which measures its profitability - to be "at the upper end" of its announced forecasts, i.e. between 3,55 euros and 3,70 euros per share.

In September, Icade finalized the sale of two office assets for 82 million euros and signed two sales agreements, also for office real estate, for an amount of 36,9 million euros.