Greater Paris leads the way for new property construction

New home construction rose 3.8% to 86,200, the period from March to May, compared with a year earlier, according to the latest figures from France’s Department of Housing.

Permits for new buildings surged 12.1% year on year, to 99,600, over the same three months, the ministry said in a statement. Broken down by type of construction, new construction on houses rose 2.6% to 80,200 units.

Building permits double in Corsica

By region, it is in Ile-de-France (Paris’ ‘Greater London’ equivalent) that new housing construction posted the strongest figures. Here new home construction was up 26.1% on the 12 months ending in late May, to 67,800 units.

The next biggest increase was in Corsica (+ 21.6%, 3,700), with the Loire area also posting a big increase (+8.6% to 22,800). In contrast, other regions have slowed – the Nord-Pas-de-Calais and Picardy (-15.6%), Alsace-Lorraine-Champagne-Ardenne (-6.9%) and Normandy (-5.3%).

Nearly 385,000 homes are expected to be built in 2016 across France, representing an increase of 10% in the new housing market. Industry figures put this largely down to the incredibly low interest rates still and state support measures for certain domestic buyer demographics.