Real Estate: “Since January, nothing has happened on my site”: With the crisis, builders’ customers are worried

Construction sites shut down, craftsmen are waltzing, suppliers haven’t been paid… The crisis that is rocking the real estate market leaves no link in the chain. As a direct result, delivery times are getting longer… enough to strain the nerves of customers who see their family cocoon dream turning into a real nightmare.

This is the case for Martin

Who called IGC, a builder of individual houses. “Since January, nothing has happened on my site. And when I contact the builder, I have no news. We are lagging behind,” he laments. It must be said that this site has had one hiccup after another since the first shovel broke.
Also read:

Real estate crisis: “There’s a kind of distress” among developers who see their activities collapse

Five months of brutal cuts

“We had the first works manager who disappeared overnight, the second who was also absent after his sick leave and the third who became the commercial director. Today, we are working with a fourth works manager who has handled about twenty overdue projects. “, points to Martin alleging brutal work cuts totaling five months.

The prospective owner then tried to contact the builder, but his calls went unanswered. So he decided to go to the IGC agency located on Avenue des Etudes in Toulouse. What was Martin’s surprise when he found himself facing a closed door. “There was nothing left inside. They closed it without warning us,” he worries.
Also read:

case. Real Estate: Layoffs, Bankruptcy Filings… Why Is Bankruptcy Risk So High Among Developers?

Unpaid artisans?

And man’s misfortune is removed. Tyler on his site refuses to work under the pretext of an unpaid debt of… 30,000 euros from IGC. Faced with the possibility of extended delivery times, Martin takes the initiative and contacts delivery guarantee insurance company CGI Bat. Once again, the answer is far from reassuring.

“Getting them on the phone was very complicated. And when they finally answered, they couldn’t give me a clear answer,” he fumes. Distraught, Martin decided to get in touch with other customers of the manufacturer and at the same time submitted a report to the Directorate General for Competition, Consumer Affairs and Fraud Control (DGCCRF).

Manufacturer guarantees

Questioned by La Depeche, the IGC, which does not hide the impact of the crisis on the sector, wants to reassure. “It is true that we have decided to have a tighter team, but that does not mean that we are going to close the Toulouse sector, quite the contrary. The idea is to reorganize in another format”, explains IGC General Director Julien Lemonnier. .

Concretely, the manufacturer went from 200 employees to 150, including about ten in Toulouse for 56 projects. For the Sesquier agency, in the north of the city, the general director points to a lack of profitability. “We decided to close this agency where we had a showroom of more than 250 m² due to cost issues. It was poorly located and did not bring us any added value,” he continues.

Over 1,200 homes delivered in 2023

For the group, which last year delivered more than 1,200 homes between New Aquitaine and Occitanie, the delivery problems will realistically concern only a handful of customers.

“Today we have a small number of people complaining about delays and I can understand that. But these are things that are unfortunately common across the sector, given the context. And when there is a delay penalty, we take it financially. On the other hand. Hand, we always deliver our houses”, assures Julien Lemonier who assures that IGC is doing well despite the crisis. “Insurance companies now ask us for builders who melt lead so that we can take over projects in progress and complete them,” said the general director.

“We have no default”

For unpaid invoices, here too, the general manager responds directly. “We have no fault with our craftsmen. On the other hand, when a customer is not happy, it is because the craftsman has not done his job. At that point, I block payment, or partially, until the work is done. Customer order. It’s unfortunately a hostage game”, recognizes Julien Lemonnier.