The number of agencies that announced a payment freeze or safety procedure last year was close to a 2009 record, according to the Altares firm.
The statistics are certainly expected, but still improving. In 2023, 887 real estate agencies declared themselves insolvent and 23 others initiated safeguard procedures, representing a total of 910 failed real estate agencies, according to the report. Figaro Altares firm, a major expert in this matter. This is the highest level since the record of 2009, when the number of failed real estate agencies reached 1,244.
“Across the economy, no failures A jump of almost 30% compared to 2022. On agencies alone, the increase reached 116%”, explains Thierry Millon, director of studies at Altares, more than doubled in one year. “This is four times more than other companies. And this perfectly reflects the stress and difficulties experienced by the sector”It analyzes.
While it’s still possible to see the glass as half full – the record hasn’t been broken – it’s hard to see the horizon brightening anytime soon, according to Thierry Millon. “The current path does not really offer any potential for improvement. So we can assume that the ceiling of 1000 failures will undoubtedly be crossed in 2024.», this expects the expert, who nevertheless expects a slowdown in the bankruptcy rate.
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Surge in failures “not surprising”
These serial failures of real estate agencies may be the other side of the boom the business has experienced over the past decade. “As household budget cuts and rising rates have reduced real estate transactions and hence reduced the pie, it is not surprising to see the failure of a number of such agencies”, explains Theory Millon. and “The number of transactions has dropped so much that pre-Covid activity levels may not be regained anytime soon», he adds.
However, “A decline in rates combined with a slowdown in inflation The machine should restart a bit. Individuals will be able to more easily carry out the work of renovating their homes, which they left off last year. Real estate stocks will become more attractive, which will help increase the number of transactions», the expert explains.
If rates become acceptable again, more real estate becomes available and prices are attractive, the sector will regain strength, summarizes Altares’ director of research. just, “There are no plans to coordinate these three issues for the coming monthsTheory cautions Milan. The economy should recover in the second half of the year, but it is hard to say whether this will be enough to turn around the real estate market.» So answer in 2025.
