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Construction: many projects stopped since the end of aid granted after Covid
Construction: many projects stopped since the end of aid granted after Covid – (France 2)
The construction sector has been in difficulty since the end of aid inherited from Covid. Many construction sites have been put on hold, with high borrowing rates and rising construction costs forcing potential buyers to review their projects.
Many small businesses did not survive the end of the aid inherited from Covid. In 2023, there were 57,729 business failures, an increase of 35.8% in one year. A quarter of these bankruptcies concern the construction sector. With an investment of 500,000 euros, four houses should have been built on land in Ambarès-et-Lagrave (Gironde). But the construction site has been at a standstill for two years. The reason ? Three of the four houses have still not been sold, so construction cannot begin.
Losses of turnover for promoters
Borrowing rates are high and construction costs have increased, preventing potential buyers from taking the plunge. A developer’s turnover fell by 40% last year. “Every year, we lose 35,000 euros just on a small operation of four homes”explains Jonathan Prévereaud, manager of Terrains du Sud and vice-president of the Pôle Habitat FFB.
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