1,245 real estate agencies have closed shop in the last year
Over the past 12 months, nearly 64,500 companies have closed their doors, the highest level since at least 2009, according to data from the BPCE Group Observatory. And in this area, the real estate sector is not immune to the crisis. Here is an overview.
The real estate sector is one of those that has recorded a level of bankruptcies at its highest over the last year. 1,245 real estate agencies have closed shop in one year . With an increase of 229% since 2019 , the number of bankruptcies is now at a historic record. " The latter have been hit hard by the rise in rates and the sharp reduction in the volume of transactions in the old market, which fell from nearly 1,200,000 transactions in 2021 and is expected to reach 775,000 this year. These unfavorable factors have undermined their turnover ," explains Alain Tourdjman, Director of Studies and Foresight at Groupe BPCE , during the presentation of the balance sheet of business bankruptcies in the third quarter of 2024.
Another activity impacted by this difficult context, real estate development has recorded 458 failures over the last 12 months. " The latter is accumulating difficulties that combine household insolvency, rising interest rates and rising construction costs ," underlines Alain Tourdjman.
A positive note all the same for the real estate sector, the number of real estate agency failures finally seems to be decreasing , going from 389 closures in the first quarter of 2024, to 297 in the second, then to 224 for this third quarter. "We expect a significant improvement in existing property transactions for 2025. We can therefore hope for a slowdown in real estate agency failures ," concludes the director of studies and forecasting at Groupe BPCE.
Comments