Non-residential construction starts drop in Q3 2026

Non-residential building construction in France started with a 3.8% decrease in the third quarter of 2026 compared to the same period in 2025. The Service des données et études statistiques (SDES) reported that 5.3 million square meters of non-residential buildings were started between July and September.

Building permits remain nearly stable

At the same time, the area receiving building permits reached 10.2 million square meters, almost the same as a year ago, with a slight increase of 0.1%. This contrast may be of interest to construction companies and real estate investors tracking new business developments.

Permits and starts represent different stages

The SDES distinguishes between two stages of real estate development. A building permit indicates a project has passed an administrative stage, while a project start means construction work has officially begun. These two figures do not necessarily refer to the same projects or timelines.

Divergence between permits and starts

In the third quarter, the number of projects started fell by 3.8%, while permits increased by only 0.1%. This divergence suggests that current construction activity is less dynamic than the flow of approved projects. However, the reasons behind the shift are not yet clear.

Multiple sectors included in the data

The statistics cover various non-residential building types, including offices, shops, warehouses, industrial buildings, and public services. The overall figures should not be applied to individual sectors without further analysis.

Rolling year shows different trends

From October 2025 to September 2026, non-residential building permits totaled 37 million square meters, a 3% decline from the previous year. In contrast, the area of projects started reached 21 million square meters, a 3.3% increase over the same period.

Quarterly data may not reflect annual trends

The difference between the quarterly and rolling-year data is significant. The decline in construction starts during the summer occurred after a period of more sustained project starts. Therefore, the quarterly drop should not be taken as a sign of a major annual decline.

Permits and starts provide different insights

For construction companies, the two sets of data offer complementary information. Started projects indicate operations entering the implementation phase, while permits show potential future projects. Neither directly measures signed orders, revenue, or employment.

Industrial investment intentions remain positive

Industrialists are showing relatively favorable investment intentions. According to the Insee, the balance of opinion on manufacturing investments between 2026 and 2027 is +19. However, executives are less optimistic about short-term demand and report worsened cash flow.

Data sources and revisions

The SDES data comes from Sitadel administrative records on urban planning permits. Since March 2026, the Sitadel3 system has replaced Sitadel2, leading to some revisions in the figures. The service also provides data by building type and region, which helps in analyzing differences between economic areas.