The long real estate depression 1880 › 1945

Once the euphoria of the Haussmann era had dissipated, the real estate sector went through a more depressed time from the mid-1880s. The situation would last until the eve of the second world war and was the impetus behind the first construction stimulus measures.

Crédit Foncier de France was faced with increased competition in property lending and criticism about the way in which the company was being managed.

While campaigns were launched against Crédit Foncier in the press in the early 1890s, some newspapers came to the company’s defence and derided its detractors.

First World War, the end of a new period of growth?3e emprunt de la defense nationale

The upheaval of the Second World War

Crédit Foncier de France wept the loss of 21 employees during the Second World War. During the war, the company fully supported its employees.

In October 1939, it paid the full salaries of employees who had been drafted and received no compensation and the difference between the military pay and the pay of employees on active duty as officers and subordinates, who were paid according to rank.

Under the shortages of the Occupation, management tried to improve to the fortunes of its employees, especially in terms of ensuring their basic needs were met. Steps were taken with the authorities to make it easier for the cafeteria, which was struggling considerably, to receive supplies. A cooperative was created with retired and active employees. Some of the basics, such as fruit and vegetables, were bought by the company then resold to members of the cooperative at a loss and for less than market price. A collection was set up and management decided to create a special loan for 100,000 francs available to the victims of the bombings. Buildings that were not under siege were made available on a temporary basis to employees who had lost their home.

A mixed post-war environmentperiode2-full-3

The global economic crisis weighed heavily on the period between the two world wars.

The instability of the economic and financial backdrop and regulations on rents, which weakened property values, created an unfavourable environment for a housing recovery in the post-war period.

Lending institutions, such as Crédit Foncier de France, tightened property lending conditions and focused increasingly on lending to local authorities, which were seen as more creditworthy. The situation improved at the end of the 1920s but was snuffed out by the consequences of the global economic crisis that depressed the construction sector, to such an extent that the State was compelled to implement measures to stimulate building prior to WWII.

The upheaval of the Second World War

During the Second World War, Crédit Foncier actively supported its employees on active duty.les bouleversements de la Seconde Guerre Mondiale

First World War, the end of a renaissance?

The war disrupted Crédit Foncier’s business activity considerably. Measures were taken to ensure that business carried on, despite the mobilisation, and preserve the continuity of the company’s activities.
To do so, Crédit Foncier’s employees worked overtime and outside workers were brought in, particularly women. During wartime, a maximum of 772 temporary employees helped fill the gap. As soon as the war was over, the number dropped to 75.

The bank wept the loss of 104 employees on the battlefield, out of a total of 1,179, i.e. 8% of the workforce.