Nexity Shares Surge 11% During Session, Surpassing the 9 Euro Threshold
Nexity's stock soared by 11.14% on Monday, January 26, reaching 9.17 euros, driven by the announcement on Friday of the government's Housing Recovery Plan aimed at constructing 2 million homes by 2030. Bernstein analysts forecast a 10% growth in the French real estate market by 2026, according to Agefi.
Significant Increase in Nexity's Stock Value
Nexity's stock exhibited a rise of 11.14% this Monday, January 26, at mid-session, standing at 9.17 euros compared to 8.26 euros the previous day. This robust increase came after the presentation on Friday, January 23, by Prime Minister Sébastien Lecornu of the Housing Recovery initiative, aiming to construct 2 million homes by 2030. The stock thus surpassed its resistance threshold identified at 9.23 euros and is approaching its 50-day moving average established at 8.82 euros, a technical signal of a regained buying momentum. The stock climbed by 11.8% to 9.25 euros this Monday, January 26, at the Paris Stock Exchange. The trading volume reached 0.99% of the traded capital, reflecting a renewed interest from investors in a real estate sector that has been under pressure for several quarters. Over a week, the stock now shows a gain of 5.46%, but it is still down by 2.96% over three months and by 24.24% over a year, indicating the severity of the correction the real estate development sector has undergone.
Potential Market Growth and Sector Concentration
Quoted by Agefi, Bernstein analysts believe that the Housing Recovery plan could allow the French real estate market to grow by 10% this year compared to 2025, and even more significantly in 2027. The recovery is expected to particularly benefit developers with healthy balance sheets and encourage increased concentration in the sector. The government has announced an increase in funds dedicated to social housing: an additional 500 million euros for 700 social landlords. The plan specifically includes in the private sector: targeting 50,000 rental homes built by 2026, and in the social sector: aiming to reach 125,000 homes built by 2026. These structural measures come as the group is set to publish its annual results for 2025 on February 25. Investors will be watching the developer's 2026 outlook in a market environment that could gradually stabilize thanks to new tax incentives and announced public support.
