According to the latest monthly data published on Tuesday by the Ministry of Housing, the number of building permits issued increased by 3.3% in February 2026, exceeding 33,000 authorizations in France. Housing starts, which occur a few months later, continue to decline.
The construction sector is looking for some signs of hope after three years of a severe crisis, even though it was still “at a low point” in early February compared to the five-year average, as indicated by the Federation of Real Estate Developers (FPI).
Among them, the latest provisional data from the Ministry of the City and Housing show a slight breathing space in terms of building permits: their number increased by 3.3% in the month of February, reaching 33,151 permits issued in one month. The previous month, in January, their number had decreased by 1.5%. This is less than originally expected, compared to the announced -6% (the ministry now revises the data of the previous month each time).
This level in February “is close to the average of the last twelve months,” according to the government. This is mainly explained by an increase in the number of authorized collective housing units (+5.3%, totaling 20,681 permits issued), while individual housing units (houses) remain stable (12,470 permits), as observed by the government’s Data and Statistical Studies Service (SDES).
However, these data need to be put into context. “From March 2025 to February 2026, 387,944 housing units were authorized for construction, 5.1% less than the average of the previous five years,” according to the SDES.
Fact Check:
– Building permits increased by 3.3% in February 2026, surpassing 33,000 authorizations. – Housing starts have continued to decline even as building permits increased.
Les mises en chantier n’ont pas encore atteint leur point bas
It is still “too early” to talk about a recovery, according to the FPI, which highlights that housing reservations for future sale (Vefa) continued to decline last year (-10.8% in 2025, and -19.6% in the fourth quarter compared to the 2019-2025 average). This shows that the enthusiasm for rental investment, the main driver of new construction of collective housing units, has not picked up.
Housing starts also continue to decline, with a forecast of -1.6% (27,158 construction sites) for the month of February 2026, according to the government, after a decline of -3.1% in January (more than initially announced).
Fact Check:
– Despite the increase in building permits, housing starts have not reached their lowest point yet.
The average of the last 12 months has also remained “17.7% below the average of the last five years (with 283,000 housing units started in the past year)” according to the SDES.
The new construction sector has been facing a severe crisis for the past three years due to rising construction costs and increased interest rates that have stalled many households’ real estate purchase projects. The end of support measures for rental investment, including the Pinel tax scheme in 2025, has also driven away individual investors.
The geopolitical context, with the consequences of the war in the Middle East, also raises concerns about an increase in the costs of certain building materials, such as concrete (which is rising), as well as impacts on borrowers in case of prolonged conflict-induced inflation.
Context:
– The construction sector in France is experiencing a mix of positive and negative trends, with an increase in building permits but a continued decline in housing starts. – Various factors, including economic conditions, government policies, and geopolitical issues, are influencing the construction industry.
