In 2023, the number of building permits fell by almost 24%.

Compared to 2022, almost 115,900 fewer permits were issued last year.

The number of building permits fell by 23.7% in 2023 compared to 2022, with 373,100 permits issued, according to provisional data reported by the Ministry of Ecological Transition.

In December 2023, 33,700 housing construction permits were granted, 12% more compared to November, but 115,900 fewer permits were issued for the whole year. The number of construction starts fell by 22% in a year, the Ministry said.

Real Estate Support: New Homes, Sales Prices Falling - 11/19
Real Estate Support: New Homes, Sales Prices Falling – 11/19

Permit issuances reached record levels during 2022 due to regulatory deadlines. Permits for 2023 are below pre-Covid levels (-19%) from March 2019 to February 2020. Like permits, construction starts also recovered in December (+22%) compared to November, with 26,900 homes.

“The market is falling near its lows”

But throughout 2023, construction works openings remain much lower than in 2022, with 287,100 homes, and also much lower than Covid (-24.6%). “The market is falling close to the historic lows of 1992-1993 (275,000 units),” the French Construction Federation (FFB) warned in December, predicting a 5% decline in 2024.

These poor figures can be compared to the record number of issuances achieved in 2022 after a surge in permit applications at the end of 2021, before the more ambitious environmental regulations for new builds (RE2020) come into force. But above all, they reflect a deep crisis in new construction, as in the entire housing sector, due to the decrease in demand for rental investment related to the tightening of lending conditions and disinterested interest from institutional investors, but also due to the increase in construction costs. and land prices.

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