2023-11-05 16:05:46
Construction still represented 13% of gross domestic product (GDP) in the early 1970s, compared to barely more than 5% today. MYCHELE DANIAU/AFP
CHRONICLE – Building is a powerful prime contractor for all industrial sectors and remains an essential engine of the economy.
Announced eighteen months ago, the real estate crisis is expected to reach maximum intensity in France next year. All indicators have now turned red and housing starts are at their lowest since the 1990s. With construction sites extending over several quarters or even several years, in the case of construction of new buildings, this collapse of projects has still only partially had an impact on national activity and employment figures. Unfortunately, this will not take long. “Assuming housing starts are nearing their low point, production will bottom out regarding a year later, in the second half of 2024.”Oddo’s economists argue.
Real estate stands out from other sectors by its extreme sensitivity to changes in rates, so it was logical that it would be affected first by the tightening of financing conditions, orchestrated by the European Central Bank (ECB) to…
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