The construction still on the rise despite a decline in the new home

The figures of the construction of the second quarter of 2017, published on Friday, underline that the construction sector is continuing its momentum of strong recovery of the activity. In spite of everything, starts of new housing were slightly weakened, after having started strongly in 2017.
According to figures from the building, published on July 28, 2017, by the ministry of territorial Cohesion, from July 2016 to June 2017, 474.100 housing units have been authorized for construction (raw data accumulated over twelve months), an increase of 13.2 % compared to the ytd of the previous twelve months. Over the same period, 397.700 housing units were started, a figure in increase of 14.4%.


The permissions for housing construction continue to rise from April to June 2017


On the last three months, from April to June 2017, the permissions of dwellings in the building have continued to increase compared to the previous three months (+2.7% after +7.3% for march to may 2017).


In particular, they are carried by the collective housing, including in homes (+10.3 per cent after -3,5 %). On the other hand, the authorizations of individual housing units decreased by 7.6% after a 9.1% increase.


On their side, housing starts decreased by 4.7 % after a strong increase of 7.2 %. They remain in the individual (+0.7% after +6.1 %) are then they retreated back into the collective including residence (-8,0%), thus offsetting the previous increase from march to may 2017 (+7.8 per cent).


Starts of new homes declined in the second quarter of 2017


According to figures published by the ministry of territorial Cohesion, housing starts of new housing rose by 8.7% from April to June in France, compared to the same three months of 2016, 101.300 units. Recall that from January to march 2017, the increase was 18.5% year on year. Building permits have increased by 10.4% in the same period, 118.800, always on a one-year, after increasing by 15.9% in the previous quarter, says the ministry of territorial Cohesion.


The case of local non-residential, from June 2016 to may 2017, with 38.2 million m2 have been authorized for construction and $ 24.5 million have been initiated. Compared to the previous twelve months, authorizations are progressing as well of 4.1 %. It should also be noted that housing starts remain less “dynamic” (+0,6%).


During the second quarter of 2017, 9.6 million m2 of non-residential premises have been licensed and 6.2 million have been initiated. Compared to the same period of the year 2016, the permissions are to grow by 2.4% and housing starts increased +2.3%.


The REIT satisfied but remains reluctant to put a brutal stop to the device Pinel


The side reactions, Alexandra Francois-Cuxac, president of the Federation of property developers (FPI), is pleased to AFP on Friday the latest figures : “It is necessary to go back five years back to find such a high level of activity in the past twelve months.”
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However, “even if they remain well-oriented, indicators in the second quarter show a slowdown in the growth of the market”, she noted, with a recovery “seems to be cresting”. Before you lament : “Although symbolic, the bar of the 400,000 housing starts on a 12-month sentence to be completed…” Yet this Tuesday, the 25th of July, the minister of territorial Cohesion Jacques Mézard has been reluctant to put “a brutal stop to the device Pinel, explaining that this could reduce the number of housing starts, and advocating for a balanced solution, knowing that(it) also generates tax revenue, has also commented on the REIT.
The sector of real estate in new hope, indeed, that the two public aid, device, Pinel, and Ready to zero (PTZ) to be renewed in 2018.


Finally, let us remember, that from April to June 2017, the construction of housing has benefited from favorable factors in the present case, the credit interest rate is still very low, despite a slight upswing in recent weeks, allowing many households to access the property.


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