Bloomberg News

France to Transfer Free Land to Developers to Spur Housing

September 05, 2012

French President Francois Hollande plans to transfer state-owned land to developers to build hundreds of thousands of new homes each year, the Ministry of Housing said.

Hollande’s Socialist government listed 930 plots representing 2,000 hectares (4,942 acres) that can be transferred, including 59 hectares in Paris, the government said today after its weekly Cabinet meeting. The state will provide the land for free or almost free to developers and will require the construction of mainly rent-controlled homes.

The measure should allow the building of 110,000 lodgings over the next three years, half of which will be in the Paris region, Urban Affairs Minister Cecile Duflot said after the Cabinet met.

Overall, the government’s goal is to encourage the construction of 500,000 lodgings a year, of which 150,000 would be rent-controlled, government spokeswoman Najat Vallaud- Belkacem told reporters. The government will also multiply by five the fines levied on local governments that don’t build enough low-cost housing.

The measures won’t hurt the government’s budget deficit because of the jobs created as well as tax receipts on work and construction, Vallaud-Belkacem said.

To contact the reporter on this story: Helene Fouquet in Paris at hfouquet1@bloomberg.net

To contact the editor responsible for this story: James Hertling at jhertling@bloomberg.net


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