The decline in sales of new homes observed in 2021 compared to 2019, – 2020 not being representative – is accelerating, according to figures from the Real Estate Observatory of the Federation of Real Estate Developers (FPI) France . This is also the case for new homes put up for sale.
A 20% drop in sales
Total sales of new collective housing in the 1st quarter fell by more than 20%, compared to those of the same period in 2021. According to FPI France, the reasons for this drop are the ever-increasing number of permit refusals, and the rise in construction costs which is impacting the financial balance of real estate transactions.
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A fall in the commercial offer
The same is true for the number of new homes put up for sale. It fell by 30.5% in the 1st quarter of 2022 compared to the 1st quarter of 2021.
Result: commercial supply continues its dramatic decline that began at the end of 2018. The stock of new homes for sale has fallen by a third since 2018 and now represents only 7.7 months of marketing, far from the ideal of 12 months . This is the lowest level since the creation in 2012 of the FPI France Observatory.
“Towards a major crisis”
“Two years after the municipal elections, collective housing still does not obtain building permits in sufficient numbers to meet household needs. As a result, the ever more glaring weakness of the commercial offer is leading an entire sector towards a major crisis”, is alarmed Pascal Boulanger, president of FPI France.
New home prices still on the rise
This shortage of new housing in the collective implies a rise in prices. They continued to increase in the 1st quarter of 2022 in Île-de-France, with +3.4%, to €5,573 per m². But the pace is more sustained in the regions where they climbed by 5.8%, to €4,524 per m². For a 3-room apartment (approximately 65 m²), the increase for a household will thus have been + €236 per m².
However, these changes mask significant local disparities. In the Eurometropolis of Strasbourg, prices increased by 10.6% (excluding parking) in the 1st quarter of 2022 compared to the 1st quarter of 2021. In the metropolis of Grenoble, the increase is 9.2% (to €4,004 per m²) and in the Lyon metropolitan area by 3.6% (€4,867 per m²), while they fell by 0.9% in Annecy (to €5,163 per m²) and by 1.3% in Besançon (at €3,336 per m²).
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