Market Trends of France Manufactured Homes Industry
This section covers the major market trends shaping the France Manufactured Homes Market according to our research experts:
Rise in Adoption of Manufactured Homes in France
The manufactured homes sector is witnessing significant growth in France, majorly driven by increasing population, urbanization, sustainability factors, and a growing preference for second home ownership. In 2022, the second homes market saw rising demand in the country, despite fears over Brexit-induced changes. British citizens emerged as major second home purchasers in the country. In addition, French people from Paris and Bordeaux are purchasing properties in the country, further driving the demand for manufactured homes.
Moreover, tiny homes named after the country, France tiny homes are gaining traction in the country. They have a compact footprint and encourage a more affordable lifestyle. In addition, these tiny houses are more like tiny cottages which can serve very well for short getaways in the country. These tiny houses are designed by an international design studio based in the Czech Republic, which has specialized in experimental projects.
Meanwhile, France's tiny homes are budget friendly and easily save up to USD 70,000. The tiny home costs around USD 1,200, where more than USD 190 is spent on design and planning, and the rest is spent on buying and building the 21 insulated panels, which will go into the house building. To meet the increasing demand for manufactured homes in 2021, more than 164,700 tons of prefabricated buildings (whether complete or assembled) are imported into the country, at a growth rate of 15% compared to the previous year.
Increasing Costs of Construction is Driving the Market
In 2022, inflation has accelerated the construction sector, and construction of new home costs, and building development are witnessing significant price pressure. In addition, in April 2022, construction costs increased by more than 7% for new building erection and 11.2% for the civil engineering segment. In addition, in Q1 2022, housing development prices witnessed a growth rate of 8.4% when compared to the same period in the previous year.
Moreover, labor productivity in the construction industry is lagging in the country. In addition, a shortage of raw materials also results in delays in construction and further raises overall production costs. In 2021, the shortage of construction materials increased due to the incident on the Suez Canal, and more recently in 2022, the Ukraine war resulted in energy shortages, which is utilized in the manufacturing of construction materials.
Meanwhile, in June 2022, as per Eurostat, France construction companies are facing challenges, such as labor shortage, which is limiting their activity, and more than 40% of the companies are facing a shortage of construction materials and equipment, further resulting in work delays. These all factors further boost construction costs in the country. Thus, French people are choosing manufactured homes over conventional ones.
