Building permits continue to decline in March, almost -20% year-on-year

The number of building permits continued to decline in March in France, reaching a historic low since at least 2015, according to provisional data published by the Ministry of Ecological Transition on Tuesday April 30. Between April 2023 and March 2024, 358,600 housing units were authorized for construction, or 19.8% less than in the previous 12 months.

New construction is in a serious crisis. Individual houses were the subject of 129,200 authorizations (-22.2%), while collective housing obtained 229,300 (-18.4%). Construction costs have increased significantly due to more expensive materials and stricter environmental standards. At the same time, buyers suffered from the rise in interest rates and the reduction in public support schemes for new real estate.

This is starting to have effects on employment. Several developers have announced social plans while smaller players are filing for bankruptcy. The real estate developer Nexity announced that it would cut 502 positions. The French Building Federation fears 90,000 job losses by the end of 2024, then 150,000 by mid-2025.