Nexity Reports Stable First Nine Months Despite Market Challenges

Nexity, a French real estate developer, has reported its business activity for the first nine months of 2026, highlighting a cautious outlook amid an increasingly challenging market environment. The company’s guidance for 2026 remains unchanged, focusing on ongoing transformations and cost-saving measures implemented since 2023.

According to the press release, Nexity’s current operating profit (COP) is expected to improve from projects underway, thanks to the restoration of margins in the Planning and Development business, the positive contribution from the Serviced Properties business, and the successful completion of the €100 million cost-savings plan by the end of 2026. The company also emphasizes ongoing financial discipline, with a selective approach to project development and measures to secure project structuring and marketing. Over 90% of the supply for sale is located in supply-constrained areas, with an absorption rate below six months, ensuring minimal unsold inventory.

In the first nine months of 2026, Nexity recorded 5,394 reservations, with 3,100 of these being retail sales. This is a 10% decrease in retail sales compared to the previous year, reflecting a market that was down 14% in the first eight months of 2026. Sales to homebuyers saw a 18% decline, impacted by higher interest rates and reduced household purchasing power. Individual investors accounted for 27% of the client mix, with 1,465 reservations, and the Jeanbrun scheme, launched in Q1, contributed to this mix with over 260 reservations.

The backlog at the end of September 2026 stood at €3.5 billion, equivalent to 1.6 years’ revenue, indicating a robust pipeline of projects. The supply for sale at the end of September 2026 was 4,891 units, down 4% from the same period in 2025. This supply is concentrated in high-quality locations, with 92% of units available for sale in supply-constrained areas, a 15-point increase from 2022. The pre-selling rate for projects launched during the period was 73%, and the absorption rate remained stable at under six months, compared to an overall market absorption rate of over 20 months at the end of 2025.

Revenue for the first nine months of 2026 was €1.6 billion, a 17% decrease from the same period in 2025. This decline is attributed to the slowdown in business activity from projects underway, partly offset by growth in the Serviced Properties business. The Planning and Development division, excluding international operations, recognized revenue of €1,295 million, down 20% from the same period in 2025. The Planning business recorded an order intake of €23 million, mainly outside the Paris region, reflecting the ongoing market downturn.

Nexity is stepping up its transformation to adapt to the cyclical low in the market, which has intensified in both scale and duration. The company is focusing on commercially secure projects in supply-constrained areas, maintaining rigorous control over its balance sheet exposure. Additionally, Nexity is reviewing its portfolio of business activities outside property development and is reviewing its organizations, brand portfolio, and overhead costs to align with the current market cycle.

In a strategic move, Nexity entered into a framework agreement with Groupe BPCE on October 17, 2026, to launch a joint venture dedicated to selecting, acquiring, and structuring real estate programmes featuring new and renovated properties in France. This partnership aims to consolidate the distribution operations within the Banque Populaire and Caisse d’Epargne network.

Nexity’s Services business, now focused solely on Serviced Properties and Distribution, reported stable revenue of €292 million for the period. Revenue from Serviced Properties, accounting for 80% of total Services revenue, increased by 2%. This growth was driven by high occupancy rates for student residences (97%) and coworking spaces (83%). The total number of serviced properties in operation includes 17,000 student residence units and over 170,000 square meters of coworking spaces. Revenue from Distribution, accounting for 20% of Services revenue, fell by €13 million, down 18%, due to a base effect linked to the delivery of the Carré Invalides programme in April 2025 and lower deed registrations during the period.

The company is also addressing the persistently unfavourable macroeconomic backdrop, marked by an uptick in inflation (up 3% year-on-year) and long-term interest rates (with French 10-year government bond [OAT] at ~5% currently), which reduce household purchasing power and borrowing capacity. Housing remains a political priority at the national and European levels, with measures to be taken in France’s 2028 budget bill.

Nexity’s proactive measures and strategic partnerships are aimed at reinforcing the company’s financial structure and adapting to the cyclical low in the market. The company’s guidance for 2026 remains unchanged, with an expectation of improved operating profitability and ongoing reduction in the leverage ratio.