Real Estate Market in France: Outlook for the End of 2025

The end of 2025 marks a turning point for the French real estate market. After three years marked by rising interest rates, inflation, and shrinking purchasing power, the market is now entering a phase of stabilization. Several major trends are emerging.

1. A residential market in transition

Activity remains below pre-2022 levels, but the sharp decline in transactions has stopped. Buyers are gradually returning thanks to stable interest rates, while sellers are adjusting prices to market conditions.

Key points:

• Prices are stabilizing in several major cities but continue to fall in others.

• First-time buyers are slowly coming back as public support programs evolve.

• Rental demand remains extremely high due to structural housing shortages.

2. Stabilized mortgage rates

After the steep rise of 2022–2024, mortgage rates are now entering a stable phase.
This improves visibility for households and restores borrowing capacity for many profiles.

3. Rental investment: optimization and repositioning

Investors are now targeting:

• high-demand areas with strong rental markets,

• properties requiring renovation (better yields despite energy rules),

• assets offering strong long-term utility value.

New energy-performance regulations are reshaping supply, widening the gap between renovated properties and discounted energy-inefficient homes.

4. Outlook for 2026

Market indicators suggest a gradual recovery beginning mid-2026, provided that:

• inflation continues to decline,

• rates ease further,

• regulatory stability is maintained.