Overview
- Promoters reported just 19,356 new homes sold in the second quarter of 2026, a steep drop that FPI called the worst quarter in its history.
- New construction permits fell by about 19.8 percent and the number of homes put on sale declined roughly 17.9 percent, signaling a broad slowdown in building activity.
- The government’s Jeanbrun incentive to attract private landlords has produced only about 150–200 monthly reservations versus a target near 4,000, according to the promoters’ trade body.
- Higher mortgage and developer borrowing costs since ECB rate rises, together with rising material prices partly linked to Middle East tensions, are deterring buyers and squeezing supply chains.
- The shortage of newly built rental homes is driving up rents, fueling political debate ahead of the presidential campaign and leaving analysts pessimistic about a near‑term recovery.