📉 Crashing Real Estate Market: What Are the Repercussions on Employment?
The year 2025 is shaping up to be a tough one for the construction sector. The French Federation of Building (FFB) forecasts a 6.6% contraction in activity this year, driven by the drop in new construction, inflation, and rising interest rates. On top of that, the planned elimination of 100,000 jobs follows a first wave of 30,000 job losses in 2024.
Othman, founder of the Bastet Group, a recruitment agency specialized in construction and real estate, explains:
“For the past two years, the real estate sector in France has been in crisis. Fewer development programs, fewer building permits filed… This inevitably leads to a crisis in construction.“
Several factors are intensifying this trend in 2024:
✔️ End of major projects: Projects like the Olympics and the Grand Paris lines, which have mobilized a large portion of the workforce in recent years.
✔️ Decline in building permits: Fewer permits are being issued, especially in residential sectors, limiting medium-term prospects for developers and construction companies.
✔️ Cautious investors: New legislative constraints are slowing down the construction of new housing and making real estate investment less attractive.
This domino effect is a classic market response: when real estate slows down, construction follows with a 1-2 year delay. Already, some major companies have started reducing their workforce in regions like Nantes and Lyon.
While the crisis seems inevitable, it does not mean a complete halt to opportunities.
🛠️ Towards a Project Shortage and Staff Adjustments?
For several years, the construction industry has faced a shortage of skilled talent. Major projects, such as the Grand Paris and the Olympics, boosted recruitment demand and contributed to inflation in salaries.
The market downturn creates a paradox: companies, faced with fewer projects, slow down hiring or reduce their workforce, even though some strategic positions remain hard to fill.
According to the FFB, the residential sector and the office market (-14.2% and -15% respectively in 2025) are the most impacted. Only energy renovation sees (very) slight growth (+0.9%), but it’s not enough to offset the decline in new construction.
In this context, companies must adjust their strategy to secure their future and optimize their talent management.
🚀 How Can Construction Companies Bounce Back?
Rather than simply enduring the crisis, construction industry players must reposition themselves in more resilient sectors.
- Industry and Logistics: The rise of warehouses and logistics platforms is creating strong demand for buildings suited to new supply chains.
- Luxury Hotels and Service Residences: The demand for upscale establishments and medical residences remains high, offering potential for companies able to specialize.
- Energy Renovation and Ecological Transition: Boosted by strict regulations and public incentives, the renovation of existing buildings is a key area to maintain stable activity.
Othman emphasizes the need for anticipation:
« If I were the leader of a construction company today, I wouldn’t wait. I’d look into the promising sectors. You have to be agile and know where the opportunities are. »
📌 The Strategic Role of Recruitment During a Crisis
Limiting hiring or reducing the workforce can be a risky bet. A good recruitment strategy during a crisis can make a significant difference:
✅ Anticipate the recovery: Preparing now ensures readiness when the market rebounds, rather than falling behind competitors.
✅ Attract the best profiles: During a slowdown, talents who were previously inaccessible become available. It’s the time to invest in the right resources.
✅ Adapt to new markets: Hiring experts from growing sectors allows you to steer your activity toward more resilient markets.
📝 Conclusion: Rethinking Strategy to Bounce Back Stronger
The real estate crisis will deeply impact the construction industry. However, companies that are able to anticipate and adapt will emerge stronger.
📌 3 Strategic Levers to Activate Now:
🔹 Diversify your activity into promising sectors (logistics, hospitality, energy renovation)
🔹 Rethink talent management and identify key positions to secure
🔹 Focus on recruiting strategic profiles capable of managing the transition
🔎 A Positive Outlook: Opportunities for Agile Companies
Although the economic context appears uncertain, companies that take the lead and adapt are at an advantage. History has shown: crises can also accelerate innovation and strategic repositioning.
The companies that invest today in promising sectors and focus on the right profiles will be the ones that bounce back the fastest and take the lead after the crisis.
Don’t endure, but act. By identifying opportunities now and structuring their development, construction industry players can not only survive, but also reinvent themselves and thrive.
👉 Looking for support to recruit the best executives and anticipate your company’s future? Contact us now to discuss.
** Data from the 2024 Report and 2025 Forecasts for the Construction Sector by the French Federation of Building