Nexity Shares Soar 18% at Opening Due to the 'Housing Recovery Plan'
Nexity's stock recorded a remarkable increase of 18.35% this Tuesday, January 27, reaching 9.77 euros. This exceptional performance follows the announcement of the government's 'Housing Recovery Plan', unveiled on Friday, January 23 by Prime Minister Sébastien Lecornu. The stock significantly surpassed its technical resistance threshold identified at 9.77 euros and crossed its 50-day moving average of 8.84 euros. The executive aims to build two million homes by 2030, which is a pace of 400,000 units per year, a goal that restores visibility for real estate developers.
Government Unlocks Additional 500 Million Euros for 700 Social Housing Providers
The government releases an additional 500 million euros for 700 social housing providers, to accelerate the production and renovation of the social housing stock, with a target of 125,000 social housing units built by 2026. Concurrently, the new tax scheme for private landlords, named 'Housing Recovery', aims at the construction of 50,000 rental housing units in the private sector starting this year. The proposed benefit allows households to enjoy a tax reduction for investing in rental real estate, without geographical restrictions. This mechanism includes a depreciation that can reach up to 12,000 euros per year, in exchange for a nine-year rental commitment and capped rents. The new scheme provides the company with long-term visibility for its projects, after a few years of uncertainties. Analysts at Bernstein estimate that the scheme could allow the French real estate market to grow by 10% this year compared to 2025, with a more marked acceleration in 2027.
Chartist Perspective Shows Bullish Dynamics for Nexity
From a chartist perspective, Nexity's stock displays a bullish dynamic supported by several positive signals. The 50-day moving average, now at 8.84 euros, has been significantly exceeded, indicating a resurgence of buyer interest. The RSI indicator is at 64, close to the overbought zone without crossing it, indicating a controlled yet vigorous bullish momentum. Breaking through the major resistance threshold at 9.77 euros paves the way for a possible extension of the movement towards the 10 to 11 euros zone, which would be the next significant technical level. Last week, the real estate developer already showed a weekly performance of 12.3%, confirming a short-term trend change. These structural measures come as the group is set to publish its annual results for 2025 on February 25th, a date on which investors will await details on the commercial outlook for 2026. The evolution of Nexity's stock remains closely linked to public policy decisions concerning the real estate sector, making this rally particularly dependent on the effective implementation of the government scheme.
