Real estate developers very pessimistic about a new housing crisis that seems to be taking hold

"We have a housing crisis which is beginning to set in: (...) the catastrophe is before us", summarized Alexandra François-Cuxac, president of the Federation of real estate developers (FPI), during a conference of presentation of sector figures for the second quarter.

This was marked by most of the confinement decreed in France between mid-March and early May against the coronavirus. These measures, which brought the economy to a halt, logically hampered the sales of developers, the sector which builds buildings.

Between April and June, according to the REIT, they sold 25.423 homes, a drop of 37,8% from a year earlier. It's a collapse, but the sector is especially worried about the future.

He notes that the granting of building permits, a pledge of future housing, has struggled to resume since the end of confinement.

"The outlook for the sector is bleak," warned Ms. François-Cuxac, announcing "very, very difficult months, even years".

The promoters believe that the problem is wider than the health crisis alone. Admittedly, this caused a freeze on the examination of permits but the sector emphasizes that the blockages were already accumulating before.

The federation holds responsible the period of municipal elections, generally considered unfavorable to the granting of permits, and, beyond that, a general tendency of mayors to be timid in terms of housing construction.

Many municipalities "are reducing all building spaces", insisted Ms. François-Cuxac.

As a result of these blockages, the sector considerably reduces its supply of new housing. In the second quarter, it fell by more than half compared to a year earlier.

"It's unheard of," regretted promoter Marc Villand. "There is an election effect and a general ambience effect which is impressive." He mentioned "a number of questioned permits, which we are asked to withdraw or which we will never have".

As part of its vast recovery plan announced at the beginning of September, the government has provided financial encouragement to mayors to facilitate the construction of housing, but the world of new housing feels largely forgotten by the State in favor of renovation issues. energetic.