Following a marginal annual decline of 0.3% in 2025, the French construction industry is expected to grow marginally by 0.9% in 2026, owing to an improvement in business sentiment, coupled with a decline in construction material costs and an increase in building permits issued. In a boost to the industry’s output, the total floor area of building permits issued in the country rose by 5.5% YoY in 2025, according to Eurostat. By segments, the floor area of permits issued for residential buildings grew by 13% YoY, while that for non-residential buildings grew marginally by 0.5% YoY over the same period.
Over the remainder of the forecast period, the construction industry is expected to register an average annual growth of 2.6% from 2027 to 2030, supported by public and private investments in energy, housing, and transport infrastructure projects. To address the severe housing shortage, the government presented a housing plan in April 2026 to accelerate residential construction projects, boost the rental market, and renovate neighborhoods. Specifically, France’s Housing Recovery Plan 2030 aims to revive the country’s struggling real estate and construction sector by targeting the construction of 400,000 homes per year from 2026. The plan includes 50,000 private rental homes and 125,000 social housing units annually. To support these goals, the government will provide EUR500 million ($579.2 million) to social housing providers through the 2026 budget, including a EUR400 million ($463.4 million) reduction in the solidarity rent reduction scheme and an additional EUR275 million ($318.6 million) for the National Housing Assistance Fund (FNAP). The government also aims to introduce the Jeanbrun tax incentive to encourage more private real estate investment.
Over the remainder of the forecast period, the construction industry is expected to register an average annual growth of 2.6% from 2027 to 2030, supported by public and private investments in energy, housing, and transport infrastructure projects. To address the severe housing shortage, the government presented a housing plan in April 2026 to accelerate residential construction projects, boost the rental market, and renovate neighborhoods. Specifically, France’s Housing Recovery Plan 2030 aims to revive the country’s struggling real estate and construction sector by targeting the construction of 400,000 homes per year from 2026. The plan includes 50,000 private rental homes and 125,000 social housing units annually. To support these goals, the government will provide EUR500 million ($579.2 million) to social housing providers through the 2026 budget, including a EUR400 million ($463.4 million) reduction in the solidarity rent reduction scheme and an additional EUR275 million ($318.6 million) for the National Housing Assistance Fund (FNAP). The government also aims to introduce the Jeanbrun tax incentive to encourage more private real estate investment.
The Construction in France - Key Trends and Opportunities to 2030 (Q2 2026) report provides detailed market analysis, information, and insights into the French construction industry, including:
- The French construction industry's growth prospects by market, project type and construction activity
- Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the French construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
Scope
This report provides a comprehensive analysis of the construction industry in France. It provides:
- Historical (2021-2025) and forecast (2026-2030) valuations of the construction industry in France, featuring details of key growth drivers.
- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
- Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
- Listings of major projects, in addition to details of leading contractors and consultants
Reasons to Buy
- Identify and evaluate market opportunities using our standardized valuation and forecasting methodologies
- Assess market growth potential at a micro-level with over 600 time-series data forecasts
- Understand the latest industry and market trends
- Formulate and validate business strategies using the analyst's critical and actionable insight
- Assess business risks, including cost, regulatory and competitive pressures
- Evaluate competitive risk and success factors
Table of Contents
1 Executive Summary2 Construction Industry: At-a-Glance6 Construction Market Data
3 Context
4 Construction Outlook
5 Key Industry Participants
7 Appendix
