Is property market of France getting stable?

Is the sordid property market of France returning to the path of stability? This is at all a very different question but experts consider that sales figures are getting better in 2009. Well, there is the Les Nouveaux Constructeurs who is also stating the same. What is Les Nouveaux Constructeurs? It is a small-cap property group founded by the nephew of former French President Francois Mitterrand. The group anticipates that better days are heading towards France’s property market. All these have made the property group concentrate its operations on France and hence it expects to return to profit and stable sales in 2009.

The company was also the victim of the downturn and its dreadful effects and as a result was severely hit by the burst of the housing bubble. This led to its submission of first loss since the 1990’s housing crisis. However the Chief Executive of the company Olivier Mitterrand has firm conviction and is waiting for the recovery of the French property market soon.

It is better to remember that France, at the moment, represents 60 percent of its revenue, compared with 50 percent at end-2007. It made a loss of 45.5 million euros ($60.72 million), against 26.4 million the previous year.

Speaking on this Olivier Mitterrand told, “Considering the recovery on the French market in 2009 … we don’t expect large variations in our revenue.” “Les Nouveaux Constructeurs will return to profitability in 2009″. As indicated by him, orders in France appeared “clearly better” at the end of the first quarter of 2009 than at the end of last year, and he still expects its debt-to-equity ratio to drop to 100 percent at end-2009, from 131 percent in 2008.

Les Nouveaux Constructeurs, at present is licking its own wound since following the setbacks it decided to close subsidiaries abroad, to cut staff by 15 percent to 20 percent and to sell 500 projects with a 10 percent to 15 percent discount. For that reason any type of expectation is natural.