2024-01-30 12:11:36
France is affected by a real estate crisis. The situation in the construction sector is far from being the best. Two thirds of construction companies expect 2024 to be even worse than 2023, warns the sector federation. This risks negative repercussions on the entire economy.
Building professionals are almost unanimous in recognizing the very difficult situation the sector is going through. The year 2023, marked by inflation and the increase in credit rates, was most disruptive for the building sector, further impacted by the removal of 6% VAT for sales of demolition-reconstruction projects. The outlook does not augur any improvement for 2024.
Two thirds of construction companies predict an even worse year in 2024 than 2023, according to Embuild, the sector federation. Specialists, including Fanny Guinochet, are calling out on a situation which risks impacting all sectors in the long term, directly or indirectly, and therefore “the entire economy”.
When the building is not going…
“When the building goes, everything goes”… Except that there, the building is wrong! And the worry then weighs heavily on the rest. Starting with these companies which are going out of business. This directly causes a shortfall in tax revenue, but also layoffs, and therefore job losses, therefore sources of income for households, drop in purchasing power, drop in consumption, increase in unemployment, etc. The process of contagion, deciphered by Fanny Guinochet on Franceinfowould it then already be underway?
The real estate crisis will worsen
Indeed, real estate, also already affected by inflation and the high borrowing rate, then finds itself more impacted, being directly linked. And those involved are expected to suffer the same consequences. The French have been handicapped by 25% of purchasing power over the last two years.
The owners are not in a better position. New standards revised or newly imposed in the name of the energy transition, such as the DPE (energy performance diagnosis) for rentals, have also affected a number of real estate programs. Agencies are not spared, and so are employees in the field. Direct partners like “notaries, brokers, promoters, and entrepreneurs” suffer in the wake of the crisis and its consequences.
Beware of a generalization of the real estate crisis!
The specialist warns of the contagion of the real estate crisis which can quickly spread given the impact of real estate on society in general. “Real estate at a standstill” is synonymous “reduction of geographic mobility”, Consequently “reduces the chances of reducing unemployment”. “The situation also has an impact on the birth rate.”
In such a context, “becoming an owner becomes an unattainable horizon”et “confidence in the future is affected, and this fuels anger. So housing is a very important point, a lever in the economy”explains Fanny Guinochet who calls for “the government is taking stock of the issue.”
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