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New Build Sector in France Yields Positive First Quarter
Figures published on May 21, 2015 by L’Observatoire de la Fédération des Promoteurs Immobiliers de France (FPI), show an increase in sales of 10.4% for the first quarter of 2015 for the new build real estate sector in France, compared to the same period in 2014.
The report outlines the factors that shaped the first three months of the year. While results show a clear return of investors, with a sharp increase of 59.6% in sales transactions by investors in the first quarter, the number of offers on the market have remained timid, with a moderate increase of 6.5% versus the first quarter of last year.
Prices have remained mostly stable throughout the country, except for a strong variation in some regions. In the Paris Île-de-France region, the average price per square meter shows a slight uptick of 0,003% in the first quarter compared to the last quarter of the previous year (Q1 2015 = €4,620 m2 versus Q4 2014 = €4,607 m2 ).
As regards new build property for commercial use, however, figures show an inverse trend, with a decrease of 13.3% in sales France-wide in the first quarter versus the same period last year.
The President of the FPI, Françoise Payelle, attributes the increase in buyer confidence to the incentives of the Pinel scheme, which came into effect in June 2014 and introduced a major reform on commercial planning legislation, and to the attractive mortgage borrowing rates that remain at historically low levels.
‘The reactivation remains fragile,’ says Payelle, ‘because the pace at which new offers are coming on the market doesn’t match the rhythm of sales being transacted –a reflection of the increasing administrative difficulty in obtaining building permits to develop new projects.’
The FPI is a professional organization representing private real estate development brokers who are at the frontline of private real estate development bringing together the different stakeholders in a project. The FPI plays an active role as a voice for the private real estate development sector in discussions with the government and lawmakers, and in the drafting of new legislation both at the national and European level.