Building Permits in France Show Positive Trend Amid Economic Challenges

In a significant turnaround for the housing market, France reported an increase in building permits and housing starts in June 2025, providing a hopeful sign amid ongoing economic challenges. The number of building permits issued for new housing units rose by 7.2% compared to May, totaling 32,900 permits. This includes 11,500 permits for individual houses, marking an 8.9% month-on-month increase, and 21,400 permits for collective housing units, which saw a rise of 6.3%.

This growth in building permits is particularly notable as it represents the first increase after a continuous decline since August 2022. Despite this positive trend, the total number of permits still remains 15% below the average issued during the year leading up to the COVID-19 pandemic. During the past year, from July 2024 to June 2025, a cumulative total of 352,400 housing units were authorized, indicating a consistent upward movement over the last four months, yet still 24% lower than pre-pandemic levels observed from March 2019 to February 2020.

The actual construction of housing units also reflected a positive trend, with 26,000 housing projects started in June, up 26.4% from the previous month. Notably, May had experienced a decline of 14.9%. However, despite this rebound, the annual total for housing projects remains around 280,000, which is 26% lower than pre-pandemic numbers.

The Ministry of Territorial Planning has pointed out persistent challenges facing the construction sector, particularly due to rising construction costs and high interest rates which are discouraging many potential buyers. In response to these ongoing economic hurdles, two parliamentary members have suggested implementing fiscal measures aimed at stimulating rental investment and attracting new buyers to the housing market.