Real Estate Crisis: Examining the Sector and Government’s Response

2023-10-20 10:41:15

Real estate crisis: facing the sector, the government holds its line

Updated October 20, 2023

par Louis Delmet – Editorial project manager

They do not hesitate to speak of a real “social bomb”. This Thursday, October 19, major housing players gathered in Paris as part of the 10th Construction Summit, at which the Empruntis editorial team was present. Under the aegis of the French Building Federation (FFB) and its president Olivier Salleron, this meeting was an opportunity to display the unity of a sector that is very critical of public policies.

Unity is strength

“The Housing Alliance”. This is the name of the initiative supported by around ten organizations belonging to the sector. There we find, for example, the USH, chaired by former minister Emmanuelle Cosse, the Federation of Real Estate Developers (FPI), the National Real Estate Federation (FNAIM) and the Union of Architects (UNSFA).

For these institutions, the objective is clear: speak with the same voice to hope to influence the government. In focus, the refocusing of the PTZ planned for 2024. The system will in fact no longer be able to apply from next year to the construction of individual housing. The FFB then fears an impact on the construction sector: “For many households, the PTZ acts as a personal contribution without which construction projects would not succeed.”

Olivier Salleron therefore asks the government to review its copy: “The FFB requests that the reform be postponed. You don’t break a system in the middle of a housing crisis.”

The government right in its boots

The highlight of the gathering held at the Palais des Congrès was an exchange between Olivier Salleron and the Minister of Housing Patrice Vergriete. Faced with the president of the FFB and a lively room, the former mayor of Dunkirk did not waver.

When he is accused of neglecting rural areas and, implicitly, of preventing the French from building individual housing in relaxed areas, the newly appointed minister did not hesitate to reframe the discussion : “We are not talking regarding a construction ban, but regarding public aid.” The government member then called for “working on the tools of tomorrow, and not those of yesterday”. An end of inadmissibility therefore.

The only announcement from him will ultimately be a response to the communist senator from Paris Ian Brossat. Present at the gathering, the latter criticized the maintenance of a difference in taxation between “Airbnb” type rentals, which are now advantaged, and traditional rentals. Patrice Vergriete then promised a “comprehensive rental tax reform” for 2025.

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