Reinventing housing in France: the challenges of global expansion in a changing market

The multiple changes impacting housing in France

First of all, the effects of global warming are forcing the building sector to take measures to reduce its environmental footprint. Among these, we find initiatives such as renovation (Prim'renov, CEE...) and regulations dedicated to new construction (RT2012, RE2020, ZAN 2023 law...). It is estimated that 75% of housing is now over 20 years old and therefore requires improvements, upgrades, renovations and transformations (source: CAH_SyntheseEnqueteOpinion-CAH_QALITEL-2020) to respond to current environmental challenges. In addition, the scarcity and increasing cost of land are forcing us to review construction practices, while the Zero Net Artificialization (ZAN) policy requires us to rethink territorial development.

Then, the aging of the French population is another important challenge which requires a significant adaptation of the housing supply. In the next ten years, the number of French people aged 75 to 84 will increase from 4,1 million in 2020 to 6,1 million in 2030. Consequently, in the next 5 years, the population over 85 will be strongly represented since it will experience a growth rate greater than 50% (source: High Commission for Planning - When the baby boomers will be 85 years old – January 2023). Projections on lifestyles and housing needs must then be considered in the light, in particular, of home support and new forms of housing adapted to the elderly.

Furthermore, the health crisis and successive confinements have profoundly changed the relationship of French people to their housing. Many families particularly wanted to redefine their spaces to adapt them to new lifestyles (teleworking space, enlarged kitchen or more welcoming and spacious living room, etc.). Households then turned more towards purchasing individual houses, primarily in rural areas.

However, new construction costs reached a very high level in 2023. Indeed, last year, prices of new houses increased by 5,2% (source: 2023 real estate market barometer, LPI-iad). Added to this is complex access to property due to the increase in real estate borrowing rates, the degraded economic conditions of the French and the significant drop in housing sales, particularly in new construction (- 44 % of sales of individual houses on average in France in 2023, according to the French building federation). The sale of old homes, between December 2022 and December 2023, fell by 22%: this is the largest drop over one year in half a century.

In this context of tensions in the real estate market and new construction, the renovation and expansion of housing is experiencing strong demand. Market players (veranda, home garden, attic, elevation, permanent extension, etc.) are recording a significant increase in requests for the creation of additional spaces.

Beyond the challenges imposed by the current context, the emergence of new housing solutions associated with environmental issues and the scarcity of land, make global expansion a sustainable response to the structural evolution of housing in France.

Global expansion as a sustainable response

The solution of “global expansion” (as we also speak of “global renovation”) stands out from other solutions for gaining space, by associating the new construction of extensions with the improvement of existing habitats, through renovation.

Many owners are looking for complete solutions to take advantage of additional space (a bedroom or master suite, an office, a larger living room, etc.), while improving their current living space and comfort. housing (energy, ergonomic, aesthetic, etc.).

It is also an interesting alternative for first-time buyers, since they can broaden their search to smaller properties, but suited to an expansion project. Seniors are also very demanding solutions for expanding their homes so that their accommodation becomes adapted to their loss of autonomy.

Overall expansion ultimately becomes a way to reclaim your home and improve it, while significantly increasing the value of the property.

The challenge for those in the profession will now be to perfectly master this new profession of expansion. To achieve this, Cybel Extension has developed, for example, a unique and specific process which allows it to respond precisely to market expectations. Our clients are supported from A to Z in their projects since our franchisees all have the status of general contractor. This specific status in the world of construction, between the house builder and the project manager, offers greater security to individuals. General contractors commit to a single ten-year contract for the entire project (extension and renovation) with an all-inclusive service and additional guarantees: a firm price and a completion time. Not only does the general contractor take care of everything, but he or she is also responsible for everything. This unique system provides peace of mind to the market and a high quality of service to individuals who are embarking on the expansion of their living spaces.

Tribune by Didier FONTAINE, director and co-founder of Cybel Extension (LinkedIn).