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Summary of our market study
The real estate market in France is estimated at over 500 billion euros.The real estate development market in France is worthover €40 billion.
The public premises segment has been in decline since the end of 2022.
The number of single-family homes has fallen considerably, dropping to between 20,000 and 25,000 in the space of a decade. At the same time, residential units have grown substantially, with housing starts rising from 20,000 to around 30,000.
By 2022, around 40 million square meters of non-residential space will have been commissioned, with commercial and transportation space seeing the most notable increases.
The warehousing segment saw a dramatic increase from 950,000 square meters to 2.1 million square meters between 2014 and 2022. This increase is mainly due to the boom in e-commerce.
Since 2022, household investment has contracted slightly. Demand for home loans is also falling, from around €22 billion to around €20 billion.
Market players.
- Eiffage
- Bouygues Immobilier
- Vinci Immobilier
- Altarea Cogedim
- Icade and Pichet Group
- Kaufman & Broad and Bassac
- Nacarat
- AST Groupe
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Summary and extracts
1 Market overview
1.1 Presentation and definition of the real estate development market
Real estate development involves the design and construction of residential and non-residential properties for sale to buyers who will then rent them out or use them directly. It is to be distinguished from land development, which develops vacant land. Real estate development encompasses all the means and actions involved in acquiring a plot of land, erecting a building and then having it purchased by a customer.
The property development market can be segmented into :
- Residential property (apartment buildings, single-family homes, etc.)
- Commercial property (offices, restaurants, shops, warehouses, factories, hotels, etc.)
- Leisure and/or public goods (gymnasiums, swimming pools, stadiums, hospitals, town halls, etc.)
This market is obviously correlated with the global real estate market, and the resulting trends directly affect the activities of real estate developers. On a global scale, this market is growing strongly, evolving between 2013 and 2023 at a CAGR (compound annual growth rate) of 6.22%, and is focused on certain regions or cities where transactions are significant: the United States, Europe, and increasingly Asia.
At national level, the real estate development market is experiencing a slight downturn compared with previous years. Indeed, sales are down by 8.68% between 2022 and 2023, but are still larger than in 2020.
The majority of developers' sales (in terms of volume) concern housing for first-time buyers or for investment. However, it is dependent on a number of factors, including demand from the private and public sectors, the level of public subsidies, lending rates and the financial situation of households in the case of private home purchases.
1.2 The global market
Global professional real estate investment market World, ****-****, in thousands of billions of dollars Source: ****
According to MSCI, the real estate market, including property development, will be worth US$**,*** billion in ****, driven mainly by the Americas, which account for **.*% of the total market.
Top ten real estate markets by country World, ...
1.3 A growing French market dominated by housing sales
According to INSEE, the real estate development market in France will amount to **.* billion euros in ****. with the exception of ****, the market has been in a period of steady growth since ****, with a growth rate of over **% between **** and **** and + *.*% over the period **** to ****. However, by ****, the market will have shrunk ...
1.4 The impact of Covid-19 on the real estate development sector
Building sector figures for **** reveal the impact of the health crisis. In new construction, there was a **% drop in residential construction and a fall of over **% in non-residential construction. The granting of building permits is also down by almost **% on ****.
There are many causes for this: obviously, there's the slowdown in ...
2 Demand analysis
2.1 A market dependent on many factors
According to Les Echos, the main wishes of residential buyers are to live in an individual home, with more space, close to shops, transport, places to live and work, to be able to respect their budget constraints, to acquire an energy-efficient home, and to have access to support services for their ...
2.2 Booming demand for warehouses
The chart below shows the evolution of warehouse take-up in France for each half-year between **** and ****. There are strong fluctuations over the period studied, with, for example, a decrease of almost **% between the *ᵉ semester **** and the *ᵉʳ semester ****, or an increase of almost **% between the *ᵉʳ semester **** and the second semester of the ...
2.3 A worsening household situation since 2022
The ease of home ownership remains highly dependent on the economic health of French households, with indicators illustrating a fragile situation since ****, according to the Fédération des Promoteurs Immobiliers.
Firstly, household investment in housing is in sharp decline, having fallen by *% in volume terms over **** as a whole. This ...
2.4 Real estate and home ownership for young people
Generation Z, comprising young people born between **** and ****, is characterized by its deep immersion in a digital universe. Unlike Generation Y, who experienced the transition to digital, Gen Z has developed its relationships and values in a fully connected context. It attaches particular importance to values such as transparency, inclusion and ...
2.5 Who are real estate buyers?
In ****, IFOP carried out a survey of *,*** people representative of the French population to draw up a profile of residential property buyers in France.
**% of buyers are under **.
Age of property buyers France, ****, % of total Source: ****
With regard to the socio-professional category of buyers, contrary to all expectations, it is ...
3 Market structure
3.1 Real estate development value chain
The real estate developer is not an isolated player; on the contrary, the act of real estate development requires the involvement of many players upstream, during the project and downstream. The main ones are as follows:
The project owner. This is the person who commissions the project and defines the specifications. ...
3.2 Companies and their characteristics
For company and employee statistics, the following NAF codes are used:
**.**A: this code covers the development of buildings primarily for residential use, and the development of hotel residences **.**B: this code covers the development of office buildings **.**C: this code covers the development of all types of non-residential buildings ...
3.3 How a real estate development project works
The criteria for success are rapid marketing and, above all, ensuring that the end result is in line with budget forecasts. To achieve this, a real estate development operation always follows the same stages:
Launching the project after studying the opportunities Control of the land on which the project will be ...
3.4 Financing a real estate development project
Real estate development projects can take a long time to get off the ground, and the revenues generated usually don't arrive until quite late, so it's essential to find financing to bring these projects to fruition. There are * main sources of financing[***] :
Pre-sale of homes or buildings to companies accounts for ...
3.5 The reaction of real estate developers to the crisis of 2023
The real estate development sector in France underwent profound changes in ****, with a notable **% drop in new housing reservations compared to the previous year. This difficult situation can be explained by the rise in interest rates, making access to credit more complex for households. Industry leaders such as Nexity, Altarea and ...
4 Offer analysis
4.1 Main contracts and services
A real estate developer is primarily concerned with individuals, investors and companies with a real estate project. Generally speaking, property developers offer property development services, as well as many other services related to their core business.
In terms of real estate development, they offer contracts for :
Vente en L'Etat Futur d'Achèvement ...
4.2 Disparities in housing prices
The average price per m² of housing in France will be €*,*** for an apartment and €*,*** for a house in ****. Over the ****-**** period, prices per m² for apartments and houses have grown at an average annual rate of *.**% and *.**% respectively.
evolution of house and apartment prices per square meter France, ****-**** ...
4.3 The popularity of smart buildings
In ****, Smart Buildings will account for *** million euros, *% more than in ****. Projections show a **% increase in sales for smart buildings in **** compared with ****. [***]
The DRIEAT Ile de France defines the concept of smart buildings or intelligent buildings as "the integration of active and passive energy management solutions, aimed at optimizing consumption, ...
4.4 A dynamic market benefiting from innovation
According to the Crédit Foncier/CSA barometer, the level of optimism among healthcare professionals has fallen in recent years, from **% in **** to **% in ****. For ****, there are marked disparities : the morale of land developers, promoters and builders is down, while that of real estate agents is up **%.
Real estate professionals' level ...
5 Regulations
5.1 Regulatory framework
The real estate development business didn't emerge in France until the late ****s, which is when the legal framework began to take shape. Today, this activity is closely supervised, particularly for residential real estate, to guarantee the safety of future residents.
The main laws in France are
The law of January ...
6 Positioning the players
6.1 Segmentation
- Bouygues Immobilier
- Vinci Immobilier
- Eiffage Groupe
- Nacarat (Groupe Robot Dutilleul)
- Nexity
- Altarea Cogedim
- Icade
- Kaufman & Broad
- Pichet groupe
- Les Nouveaux Constructeurs Bassac
- AST Groupe
- Sogeprom
- BNP Paribas Real Estate France
- Marignan
- Lazard Group Real Estate
- Réalités Promotion
- Sopic
- Compagnie de Phalsbourg
- Frey
- Duval Groupe
- Groupama Immobilier
- Unibail-Rodamco-Westfield
- Arche groupe Immobilier
- Socri
- CEETRUS Auchan
- SCC
- CDC Habitat
- Constructa
- Spirit Immobilier
- Apsys
- KS Groupe
List of charts presented in this market study
- Global market for professional real estate investment
- Top ten real estate markets, by country
- Breakdown of business volume in real estate development
- Sales trends for the real estate development sector (NAF code "4110")
- Cumulative floor space started over 12 months
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Latest news
Diversification of the Duval Group: real estate, tourism and golf - 24/07/2024
- - The group employs over 5,000 people.
- - Group sales exceed one billion euros.
- - The real estate development division generates average sales of 250 million euros a year.
- - The Group's real estate assets are valued at 3 billion euros.
- - In the tourist residences sector, the Odalys Group, owned by Duval, has 130,000 beds spread over 550 sites.
- - The group owns 125 golf courses, including 100 in France, making it the European leader and number five worldwide in the sector.
- - The group has achieved annual growth of 20% to 30% in its microfinance activities in Africa, where it has acquired over 1.2 million customers in five years.
Kaufman & Broad, the developer that's making its mark - 13/07/2024
- - Sales by developers in France down by more than 26% in 2023
- - Sales down by more than 15% in the first quarter of 2024.
- - Kaufman & Broad: sales down 14.2% last year.
- - Kaufman & Broad sales target for the year: 1.1 billion euros, with a margin of between 7% and 7.5%.
Real estate: Réalités sells off its subsidiaries - 27/06/2024
- - Company size: 1,300 employees.
- - Initial business sectors: student accommodation, senior housing, hotels, crèches, professional sports.
- - Value of LWS Hospitality sale: €25 million.
- - Investment in Les Neptunes (women's volleyball and handball): 8 million euros over four years.
- - Reduction of workforce to under 400 by 2024.
- - Sales last year: 400 million euros.
- - Net income last year: 2.1 million euros
Altarea launches affordable housing for first-time buyers - 22/05/2024
- Nearly 100 homes marketed one month after the launch of the new Cogedim Access offer.
- Interest rates quadrupled by 2022, reducing the purchasing power of potential buyers by 20% to 30%.
- Private development market down by around 50%, from 150,000 to 160,000 homes a year to around 80,000.
- Altarea's objective: to enable a household earning 3,000 euros a month to buy a three-bedroom apartment with no deposit and monthly payments of 1,000 euros.
- Altarea to reduce housing production from 13,000 units in 2019 to 8,000 units in 2023
- New "Access" housing should account for around 2,500 units of Altarea's business.
- Reduction in the share of Altarea's overall sales generated by property development from 70% to 40%.
Real estate: Nexity announces 500 job cuts - 26/04/2024
- - 502 jobs affected by Nexity's redundancy plan.
- - Nexity's promotion-construction division will reduce its workforce by 28% compared with 2022, when it employed 2,800 people.
- - Nexity employed some 8,200 people at the beginning of the year.
- - 3,100 employees are expected to leave Nexity around April, with the sale of the property administration business to Bridgepoint.
- - Bouygues Immobilier has announced the loss of 225 jobs out of a total of 1,054.
- - Housing sales to fall by a third in 2023 compared with 2022, and by more than half in the last quarter of 2023.
Building: pressure mounts on homebuilder - 20/04/2024
- AST Groupe has announced the opening of an accelerated safeguard procedure
- The company has announced a restructuring plan, despite a 15% increase in sales to 178.7 million euros compared with 2022.
- The refocusing of its business mainly concerns house building in the southeast region, accounting for almost 60% of sales, with the cessation of business development in other regions.
- By the end of 2022, the company will have 189 branches.
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