French Property Market Analysis – Summer 2025

Posted on 3rd August, 2025

French property sales and the market are showing signs of revival this summer, with transaction volumes up and buyer confidence returning. While national prices remain stable, important regional contrasts create opportunities across the country. For both buyers and sellers, summer 2025 presents a strategic window to act.

Demand from American Buyers

This year has seen a notable increase in demand and inquiries in French real estate from American citizens. According to Google Analytics, there has been nearly a 30% increase in interest from American buyers compared to the first half of 2024. This surge highlights the growing appeal of France, as well as the French property market to international investors, particularly those from the United States, who are increasingly looking to capitalise on the current market conditions and favourable exchange rates.

Signs of a Cautious Recovery

After a slower 2023 and 2024, the French housing market has seen a turnaround since spring. According to the latest consolidated figures, real estate transactions in the first half of 2025 rose by 12% compared to the same period in 2024. Stabilised interest rates and extended tax incentives have played a significant role in this positive momentum.

However, the recovery is uneven. Price growth is moderate, varying by region and property type. Nationally, the average property price rose by just 0.4%, with larger cities, such as Paris and Lyon, contributing to a higher figure. At the same time, rural areas and suburbs experienced flat or slightly declining prices.

Surge in Compromis de Ventes Signed

French Notaries and real estate networks confirm a 20% rise in sales agreements (”compromis de vente”) in the first half of 2025, compared to the same period last year. Patrick Joseph, founder and owner of My-French-House.com, confirms this upward trend:

“We’ve witnessed a substantial increase in not just inquiries, but also completed sales compared to last year, which wasn’t a great year for the overall French property market, so I would say that the market is re-adjusting to more ‘normal’ levels.”

Falling inflation and gently easing borrowing conditions are helping to improve credit access; however, experts still caution that this market remains highly sensitive to broader economic news and shifts in interest rates, which are expected to go up in the autumn.

For now, summer 2025 offers a moment of stability and strategic opportunity for both buyers and sellers, particularly in regions with high demand or excess stock.

The Regional Picture: Where to Buy

France’s real estate market remains deeply localised with important regional variations, for example, so far this year:

Paris prices climbed by 2.7% on average, driven by strong demand and limited supply.
Bordeaux, Lyon and Toulouse also saw mild upward price trends.
In contrast, prices in Brittany, Grand Est and Bourgogne-Franche-Comté are stable or slightly falling, offering buyers more negotiating room.

This divergence underscores the importance of a regional strategy: buyers should carefully research each region and its trends before making an offer.

A Summer of Opportunity

Summer often favours buyers, and this year is no exception. With less competition and a more balanced market, negotiators have the upper hand in many regions of France. In some areas, professional changes or financial constraints mean sellers are more willing to lower prices.

Buyers should have financing in place and be ready to act quickly. Working with a professional agent and currency specialists helps secure the best deals and avoid delays. A well-prepared mortgage file is key, particularly as banks continue to scrutinise affordability and income stability.

Rental Investment & Energy Regulations

Landlords are facing new challenges and opportunities in 2025:

G-rated homes can no longer be rented out as of this year.
F-rated homes will follow in 2028.

This has led to a shrinking rental supply, particularly in older housing markets, and rising rents in large cities such as Lyon, Bordeaux and Toulouse.

Well-insulated, DPE-compliant properties are more valuable than ever. Investors are focusing on renovated homes or opportunities to upgrade older properties.

Sellers: Make This Summer Count

With buyers back and interest rates stable, sellers should act before the autumn uncertainties arise. Summer 2025 offers a key window, especially in cities and sought-after regions. Pricing realistically, improving energy ratings and presenting properties in top condition can all make a significant difference.

Home staging, light renovation, and up-to-date diagnostics are recommended. DPE results now heavily influence buyer interest and offer amounts.

What About New Build and Luxury Real Estate?

New builds remain attractive thanks to incentives like loans and tax schemes, particularly in growth areas like the regions of Occitanie and Provence Côte d’Azur.
Chateaux and Luxury homes on the Riviera and the French Alps continue to attract cash-rich buyers, despite global uncertainty.

Currency Trends Shaping the French Market

Recent weeks have seen significant shifts in currency markets, which may impact the French property market this summer. The pound (GBP) has faced pressure, its worst monthly performance in two years, due to concerns over the UK’s fiscal health and weak economic data.

The euro (EUR) has shown resilience, supported by strong economic data, including record-low unemployment in the Eurozone and higher inflation in Germany; however, it faces criticism over the EU-US trade deal and potential future tariffs, which could impact its stability.

Meanwhile, the US dollar (USD) has been strong, driven by positive economic indicators and Federal Reserve hawkishness, potentially attracting US buyers and investors to France.

Ongoing global trade fragmentation may lead to increased volatility soon. These currency trends create a complex environment for international investors in the French property market, shaping decisions based on exchange rates and economic prospects.

Property Market - Outlook for 2025–2026

While the market is no longer red-hot, France remains a safe haven for real estate investment, particularly for lifestyle buyers and long-term investors. Prices are unlikely to surge, but they’re also unlikely to collapse, especially in areas where demand outstrips supply and international buyers are active.

Buyers should expect longer timeframes, more negotiation power, and less frenzied competition; however, the fundamentals of location, condition, and pricing remain as crucial as ever.

Whether you’re buying, selling or investing, this summer offers a great window of opportunity in a stabilising French property market. Now is the time to act! Feel free to register your interest to receive our property alerts and newsletters, it’s free!

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