In April 2016, the new dwelling demand has improved according to the developersQuaterly business survey in the real-estate development - April 2016

In April 2016, more developers consider that demand of new dwelling is high. The corresponding balance has improved sharply and has returned to its long-term average, for the first time since the end of 2010.

Demand for new dwellings is considered higher

In April 2016, more developers consider that demand of new dwelling is high. The corresponding balance has improved sharply and has returned to its long-term average, for the first time since the end of 2010.

Expected housing starts remain stable

In April 2016, the balance of opinion on expected housing starts for the next three months remains nearly its long-term average. The rise of the corresponding balance concerning housing starts for sale balances the decline that concerning housing starts for rent. Slightly fewer developers than in January indicate a fall in unsold dwelling stocks. The corresponding balance remains slightly above its long-term average.

More developers consider that the housing average price for sale has increased

More developers than in January indicate a rise in average price of new dwellings; however the corresponding balance of opinion remains below its long-term average. More developers than in the previous quarter consider that downpayment to acquire a new dwelling has increased during the last quarter; the corresponding balance is well above its long-term average. Furthermore, more developers than January think that the financing capacity to purchase new housing will increase over the next quarter. The corresponding balance has advanced again and remains higher than its long-term average.

tableau1 – Real-estate development economic outlook

Balances of opinion, in %, SA
Real-estate development economic outlook
Mean* July 15 Oct. 15 Jan. 16 April 16
New dwelling demand –9 –25 –28 –31 –8
Expected housing starts –7 –10 –14 –6 –6
- for sale –15 –14 –17 –11 –8
- for rent 0 1 –6 5 –4
Unsold dwelling stock tendency –26 –25 –23 –24 –20
Housing average price for sale 4 –22 –14 –14 –8
Downpayment –21 –19 –22 –20 –10
Financing capacity –22 –24 –15 –8 –1
  • * Mean since July 1991.
  • Source: French business survey on real-estate development - INSEE

Demand – New dwelling demand tendency