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Real estate crisis: “The French have lost approximately 25% of purchasing power in 18 months,” warns Véronique Bédague, CEO of Nexity
Véronique Bédague, CEO of the real estate group Nexity, was the guest of “4 Vérités” on France 2, Monday November 20. – (France 2)
Véronique Bédague was the guest of France 2’s “4 Vérités” on Monday.
The real estate crisis that France is experiencing is “unparalleled violence”. “It affects all new entrants (…) and today there is no real solution for them”observes Véronique Bédague, CEO of the real estate group Nexity, guest of “4 Vérités” on France 2, Monday November 20.
“There is not enough housing supply in this country. And as long as there is not enough supply, prices will not fall. (…) The second crisis that is coming is obviously, after the war in Ukraine, the increase in interest rates. The French lost around 25% of purchasing power in 18 months. (…) They borrowed at around 1% at the start of last year, they now borrow at around 4.2%, without insurance costs”specifies Véronique Bédague.
“About 30% fewer new homes”
What is the horizon for the sector? “We are going to sell around 30% fewer new homes this year than last year. This will really translate for the French, in their daily lives, at the start of the 2025-2026 school year, which will be even more tense than the start of the school year. that we live today”estimates the CEO of Nexity.
The future also looks bleak in construction. “I think there are going to be layoffs. We estimate these layoffs at around 300,000 people throughout the real estate sector”says Véronique Bédague.