Reservations for new homes by individuals fell sharply in the first quarter

Between January and March, 15.865 new homes were reserved by individuals, mainly apartments (14.973), with reservations falling by 8,8% compared to the previous quarter.

Compared to the first quarter of 2024, bookings are down 3,3%.

Housing reservations had increased slightly quarter-on-quarter in 2024, but the trend did not last beyond the fall of 2024 and have been declining for the past two quarters.

At a press conference on Thursday, Pascal Boulanger, president of the Federation of Real Estate Developers (FPI), expressed concern that "quarter after quarter are similar and getting worse," and that individual investors are deserting the market.

According to FPI data, housing reservations by individual investors collapsed by 41,1% in the first quarter compared to the same period in 2024, to 2.448, a consequence, according to the federation, of the disappearance at the end of 2024 of the Pinel tax niche supporting rental investment.

The government's data and statistical studies department also noted that 16.051 new homes were put up for sale by developers in the first quarter, an increase of 4,7% compared to the previous quarter.

At the end of March, 117.905 new homes were available for sale, a stock almost stable (-0,4%) compared to the end of December, but 9,8% lower than at the end of March 2024.

New real estate has been plunged into a serious crisis for two and a half years due to rising construction costs and interest rates from 2022, as well as the end of incentive schemes for rental investment.

Illustrative image of the article via Depositphotos.com.