In April 2014, the demand for new dwellings decreasesQuaterly business survey in the real-estate development - April 2014

In April 2014, more developers than in January indicate a fall in the demand for new housing. The corresponding balance of opinion is significantly below its long-term average. Business managers forecast a decline in housing starts for sale for the next three months. Conversely, housing starts for rent will improve.

The demand for new dwellings decreases

In April 2014, more developers than in January indicate a fall in the demand for new housing. The corresponding balance of opinion is significantly below its long-term average. Business managers forecast a decline in housing starts for sale for the next three months. Conversely, housing starts for rent will improve.

Unsold dwelling stock might increase

Fewer developers than in January indicate a rise of unsold dwelling stock. But, the balance of opinion is still sharply above its long-term average.

Fewer developers indicate a drop in prices

In April, fewer developers than in January indicate a fall in average prices of new housing; the corresponding balance of opinion is again significantly below its long-term average. Their opinion about the downpayment to acquire a new dwelling is almost stable. Far more developers than in January forecast a decrease in the financing capacity to purchase a new housing.

tableau1 – Building construction economic outlook

Balances of opinion, in %, SA
Building construction economic outlook
Mean* July 13 Oct. 13 Jan. 14 April 14
New dwelling demand –7 –43 –43 –43 –48
Expected housing starts –6 –28 –24 –18 –25
- for sale –15 –45 –30 –27 –39
- for rent 1 –3 –9 –8 –4
Unsold dwelling stock tendency –27 –20 –19 –13 –18
Housing average price for sale 7 –26 –21 –24 –21
Downpayment –20 –43 –46 –41 –40
Financing capacity –22 –48 –48 –42 –57
  • * Mean since July 1991.
  • Source: French business survey real-estate development - Insee

Demand – New dwelling demand tendency