en.Wedoany.com Reported - The Île-de-France branch of the French Building Federation (FFB) released an analysis of the construction industry's situation based on data up to the end of February 2026 at a recent press conference. The federation noted that recovery signals are real but remain fragile, facing multiple threats such as rising material costs, geopolitical tensions, and increasing regulatory burdens.
The latest data shows some positive trends in the sector: the number of approved housing units reached 67,500, up 31.4% year-on-year; the number of housing starts was 47,000, up 14.7% year-on-year. The floor area of non-residential building starts increased by 8.1% to 2.706 million square meters, while approved floor area grew by 18.1% to 4.409 million square meters. The analysis attributes this improvement to strong housing demand and public incentive measures such as the Jeanbrun Law (loi Jeanbrun) and the status of private landlord (statut du bailleur privé). The number of business bankruptcies fell slightly, with a 1.3% decline in the first quarter of 2026, totaling 3,479 cases; however, this improvement masks persistent vulnerabilities, particularly among small and medium-sized enterprises and micro-enterprises, which face greater pressure on cash flow due to rising costs and payment delays.
The report warns that multiple factors are threatening this recovery: rising material costs are reducing profitability and housing affordability; the RE2020 regulations applicable to the tertiary sector are increasing construction costs; and international conflicts are disrupting supply chains and driving up energy prices. Despite support from Energy Savings Certificates (CEE), maintenance and renovation business volumes fell by 1.8% by the end of 2025, mainly constrained by high costs, labor shortages, and interrupted subsidies. The regional branch hopes to achieve a business rebound in the second quarter of 2026 with the help of the "My Renovation Grant" (MaPrimeRénov') and the "Housing Recovery Plan" (plan Relance Logement). Employment in the sector is stagnant, with the number of employees falling by 0.7% to 356,599; the number of temporary workers dropped by 5.6% by the end of February 2026, indicating a slowdown in hiring and increased instability for workers.
To consolidate the recovery momentum, the FFB Île-de-France branch has proposed several measures: accelerating project approval processes; stabilizing subsidies such as MaPrimeRénov' and CEE in multi-year planning; providing energy transition-related training for employees; and establishing an observatory for material and energy costs. The "Housing Recovery Plan" (Jeanbrun Law) has brought hope to the market by relaxing policies on old housing and extending coverage to detached homes (excluding new builds). The regional branch further calls for extending the plan to the construction of new detached homes to achieve the target of over 81,000 new housing units annually by 2035. At the same time, the federation emphasizes the need to avoid gaps between projects under the National Urban Renewal Program (ANRU) and to facilitate access for small and medium-sized enterprises and micro-enterprises to public procurement markets.
Edouard Durier, Vice President for Economic Affairs of the FFB Île-de-France branch, concluded that 2026 could be a year of rebound if all stakeholders seize local opportunities while effectively controlling external risks. The branch will continue to mobilize, support industry professionals, and turn challenges into levers for sustainable growth.
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