Strongly impacted by the financial crisis, the real estate market has since seen a downward trend as housing construction relies more heavily on state support. The sector has consequently seen a heavier focus toward first purchase and tax relief housing, to the detriment of the free market.
The confluence of several inflationary factors, such as the increase in construction costs due to higher raw material and energy prices as well as new construction norms and the high cost of land, add to weakened purchaser profiles and wary creditors to further complicate today’s real estate environment.
Firms must thus innovate if they are to return to long term growth. The question however, is how to do so in today’s economic climate. The answer to this question naturally differs depending on the situation.
Zalis’ multidisciplinary team is committed to helping our real estate clients reposition themselves for growth in today’s challenging market.
Example of an accomplished mission
A French leader in house building in crisis: Providing operational support during turnaround and crisis management.
A receiver appointed by the court asked Zalis to run a home builder, ranked number 2 in France, out of its cash flow crisis.
Zalis assisted the management and shareholders to deal with a business slowdown, using a large operational team to audit the group (and its different business units spread across France) and to build an action plan to rescue the business.
The resulting action plan was implemented over a full year. Once the rescue had proved successful, a buyer was found for this company.