After the contraction of the real estate market in 2023 due to inflation and rising interest rates, the sector started to recover in 2024 thanks to a reduction in the cost of financing and a rebound in sales. By 2025, this trend is expected to consolidate, although limited supply will continue to drive prices upwards. In France, the recovery will be slower due to land and financing constraints, keeping pressure on developers. In both countries, the sector’s profitability will improve, albeit accompanied by changes in leverage levels. At the sector level, we do not expect significant swings in our ratings.

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