Is new construction destined to become a niche in the real estate market?
One could fear it, as the objective of 500,000 housing units built per year seems out of reach and the figures for the start of construction and marketing of developers are reaching dramatically low levels.
A situation that does not seem to be getting any better.
Because in addition to facing the rise in credit rates and the financing difficulties of its customers, new buildings must face soaring construction costs with land that is still just as rare and expensive.
Stopped operations
“Our control over construction costs is quite limited,
” stresses Charles Toulat, Managing Director of Atland Residential.
They depend on the standards to be applied, materials and labour, and none of these three items should go down.
The only adjustment variable that remains is the price of land.
Even within the Federation of Real Estate Developers (FPI), opinions differ on…
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