The new challenges of promotion
The year 2050 is less than 30 years away. That just goes to show the scale of the challenge facing developers, authorities and building professionals. For public and private players alike, regulatory constraints, rising land prices and financing difficulties are already causing headaches. But if, on top of that, we can no longer count on free, welcoming land areas, we've squared the circle. Of course, "building the city within the city" seems like a common-sense solution: elevate, densify, demolish and rebuild - what a great program! But that's without taking into account the administrative complexities, appeals from neighbors, and logistical surprises of a congested urban fabric...
Let's be concrete: if the first official objective is to halve the artificialization of land in France over the next ten years, it's time to resort to the only method with a proven track record: urban recycling. As theObservatoire régional de l'immobilier d'entreprise en Île-de-France (ORIE) recently pointed out, the level of office vacancy in the Paris region has risen from 2.5 to 4 millionm2 in a very short space of time. If we want to create housing, the solution is there: recycle unused surfaces, because they can't be used, and exploit this major building resource without artificialising a single square metre of floor space.
Real estate portage, a response to building obsolescence
Sometimes, in the heart of major metropolises or on their immediate outskirts, buildings remain that are unsuited to current and future energy-saving requirements, but also to the new ways of working brought about by the pandemic. Other buildings are so dilapidated or uncomfortable to use that no one would consider occupying them in their current state. Finally, industrial, commercial and administrative wastelands await a hypothetical buyer. If such a buyer were to come along, it would be a veritable crossroads to overcome the administrative, technical and financial obstacles that would inevitably stand in his way.
The French government has already set up real estate portage structures, but this is also carried out by private players! Portage consists in acquiring assets on behalf of a third party, to whom they are then sold according to pre-determined terms and conditions. In this case, real estate portage enables the purchase of property with conditions precedent reduced to the strict legal minimum. With the support of investors aware that the obsolescence of many buildings represents a source of value and a means of addressing the housing shortage, the holder offers developers the opportunity to carry out their projects while bearing the risk. This is the advantage of co-promotion, which makes recycling possible while optimizing equity capital. Zero net artificial development clearly favours the development of such operations, showing private players and public authorities part of the answer to the housing shortage. There are already numerous success stories. The 30% building bonus will accelerate the pace of recycling.
Joining forces to create housing
To achieve this, it is essential that all stakeholders - builders, financiers, public authorities, elected representatives - work together to align everyone's interests. Urban recycling is one way of creating the housing our citizens and cities need. It is also a way of boosting construction while respecting environmental responsibilities - in particular biodiversity - creating and preserving jobs, and enhancing the quality of life for residents. Success stories are already legion: often, as recently in Nanterre, the conversion of an office building has saved some 60% inCO2 emissions compared with demolition-reconstruction. To bring large-scale projects to fruition, we need to work together to devise innovative financing methods, for example, by appealing to the public's savings. France has a wealth of experienced builders and promoters who are eager to put their skills to work and do what they do best: build or transform. And, in particular, to create the housing that France needs.
Inequalities - social, territorial, generational - are exacerbated by the steady rise in the price of housing in tense areas, and the various public policies implemented to attenuate these divisions have not succeeded - let's have the courage to admit it. In large cities, and particularly in Paris, the middle classes are struggling to find housing, while the image of a two-speed society is growing, with widening gaps between the well-housed and the poorly housed. All the more so as this conceals intergenerational disparities: young working people are finding it increasingly difficult to buy a home. The need to create housing is therefore no longer a sectoral problem, but a national priority.
Mayors and other local elected representatives, like the government, are globally committed to the fight against climate change, and more specifically against urban sprawl, which generates increased travel and infrastructure costs. It is urgent that public authorities and all market players join forces to seize the opportunity of urban recycling.
Appointed Chairman of Novaxia Investissement at the beginning of the year, Mathieu Descout began his career as development manager at Les Nouveaux Constructeurs, Nexity Seeri and France Habitation, then as deputy development director at Bécarré. After joining the Novaxia group in 2014, he became development director, was then promoted to managing director of Novaxia Développement, then managing director, and finally president of Novaxia Investissement.
The current Chairman ofInterconstruction, who is also Chairman of the Fédération des promoteurs immobiliers d'Île-de-France, began his career with Financière Sofal. In 1986, Marc Villand joined Seeri, where he rose through the ranks from program manager to development director. He then joined IED as director, before moving on to Nexity, where he was appointed deputy managing director, then managing director. He left the company in 2002 to join the Interconstruction group.
Article taken from issue 181 of Business Immo Global.
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