Real Estate Information

Political crisis: real estate on the brink of collapse? Discover the warning signs!

By Sammy Byron , on June 24, 2024 - 2 minutes to read
découvrez les signaux d'alerte de l'effondrement potentiel de l'immobilier en raison de la crise politique.

The political crisis is shaking up the real estate market. Between uncertainty and turbulence, the warning signs are multiplying. Let’s take a closer look at what’s at stake to anticipate the future of real estate.

Sales in freefall

The sales are in free fall, plunging the real estate sector into an alarming situation. Since the beginning of the year, sales volumes have fallen by 27% compared to the previous year. This drastic reduction has had a direct impact on companies and jobs related to real estate.

Construction companies at risk

Construction companies have not escaped the turmoil. A large number of single-family home builders and property developers have gone out of business. This situation is creating abandoned building sites and insurance companies on the sidelines.

Real estate agencies in liquidation

The number of real estate agencies undergoing defaults has doubled in the space of a year, figures that reflect a disastrous situation. The Provence-Alpes-Côte d’Azur region, in particular, has seen a significant increase in liquidations and receiverships.

Rental stock at a standstill

The rental market has also been affected. Prices per square meter have risen significantly, making rents more unaffordable for many tenants. This situation also congests the social rental stock.

Cataclysm in the construction industry

According to Grégory Monod, President of the Housing Division of the French Building Federation (Fédération française du bâtiment), the situation in the building industry is described as “cataclysmic”. The anticipated loss of 150,000 employees by the end of the first half of 2025 attests to this.

The dissolution of the National Assembly: a fatal blow?

The dissolution of the National Assembly has put several important bills on hold. This decision is generating a wave of uncertainty, undermining an entire industry already in crisis. The fact that the housing bill has been put on stand-by is a further cause for concern.

🏠 27% drop in sales
⚠️ High risk of agency failure
🚧 Construction sites at a standstill
📉 Erosion of real estate purchasing power
💼 Estimated loss of 150,000 jobs by 2025
💰 Rent increases
🚪 Closure of construction companies
🔨 Single-family home construction in free fall
📊 Falling property prices
🏦 Difficulty accessing real estate credit

Solutions in perspective

  • 💡 Review the rules governing access to credit
  • 🔄 Reintroduce zero-interest loans
  • 🏢 Encouraging rental investment
  • 🤝 Support from public authorities

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Sammy Byron

After studying as a specialist in investigative journalism across Europe, I decided to start writing for my own community of Internet users. You can also find my most accurate studies and analyses on the latest trends in the United States. If you are interested in an analysis or a study in collaboration with our Experts, do not hesitate to use the dedicated contact form.

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