The construction sector is in great shape, as can be concluded from reading the latest economic report from the French Building Federation (FFB). Between February 2016 and January 2017, private-sector housing sales soared by 20%.
During December 2016, January 2017, and February 2017, building permits increased by 15.5% compared to the same period the previous year. Housing starts rose by 8.5%, with 410,000 homes started across France.
The figures released by the FFB also suggest a forthcoming surge in individual housing: over three months, housing starts increased by 8.9% while the number of building permits issued grew by 21.8%.
This construction boom is partly due to the strong return of first-time buyers, including intermediate and even social buyers. The FFB attributes this phenomenon to the continuation of the PTZ (zero-interest loan) scheme. According to INSEE, in recent months, household intentions to buy homes have returned to their historic highs.
Another sign that the sector is doing well: the construction industry is recording job creation at a much higher level than the overall economy: +7.1% in 2016 compared to +4.8% a year earlier.
The FFB maintains its employment forecasts for 2017, expecting an increase of 10,000 jobs, including 6,000 in salaried positions.
Finally, the number of mortgage loans granted illustrates the French people’s willingness to become homeowners: according to the Observatory of Real Estate Credit Production, their number (excluding renegotiations) increased by 9% for new homes in 2016.
