French Property Annual Market Report: Winter 2025

The Notaires de France have published their annual market report for 2025, focusing on residential sales. This year will be remembered as a period of recovery and cautious optimism, with transaction volumes increasing and buyer confidence gradually returning, confirming the trends we reported in our summer report. While prices remain stable in most French regions, the market shows signs of a balanced revival after the challenges of 2023 and 2024.

Market Overview

After a slower period, the French property market has experienced a notable turnaround in 2025. Transaction volumes have risen considerably, with approximately 920,000 to 940,000 sales expected by the end of the year, representing an 11% increase from 2024. This rebound is mainly due to the stabilisation of interest rates around 3%, which has improved access to credit and restored some confidence among buyers.

Price trends have been mixed but generally stable. Existing apartments saw a slight 0.3% increase in the second quarter of 2025, while older/resale homes maintained steady prices. Overall, the sentiment remains cautiously optimistic, with buyers and sellers adopting a more pragmatic approach after recent market volatility in 2023. However, volumes are still below the peak years, indicating that while the market is recovering, it is not yet booming.

“The French property market in late 2025 clearly reflects the broader economic caution we’ve observed throughout the year”, says Patrick Joseph, founder of My-French-House.com.

“While demand is steady, what’s notable is the limited availability and choice this winter. Many sellers are holding back, waiting for clearer economic signals, which creates a supply bottleneck.

We are seeing early signs of this easing as we approach 2026, with more properties expected to enter the market in the first quarter of the new year. For buyers, this could mean that spring 2026 presents fresh opportunities, but acting quickly will be essential in a market still highly competitive.”

Regional Variations

The French property market remains highly localised, with notable differences between urban and rural properties. Cities such as Paris, Lyon, and Toulouse continue to experience steady activity, although Paris has seen a slight price increase of 1.5%, while Bordeaux has experienced a modest decline. At the same time, rural regions are still lagging, with prices either stabilising or slightly falling, reflecting a slower recovery in less densely populated areas.

Emerging markets include smaller towns and coastal regions, especially in Brittany and the French Alps. Brittany has seen a surge in foreign interest, with inquiries increasing by 25%, driven by its affordability and seaside appeal. The French Alps are benefiting from strong demand for ski properties ahead of the Winter Olympics, with prices rising by 7% in premium resorts such as Courchevel and Megève.

The most notable price fluctuations are in Provence and the Côte d’Azur, where luxury villa sales have grown by 11%, fuelled by wealthy European and American buyers. In contrast, the French regions of Normandy and Grand-Est have seen prices remain steady or decline slightly, creating more opportunities for negotiation.

Châteaux and Historic Homes

The French château and historic property market in 2025 has shown resilience, with steady demand from high-net-worth international buyers viewing France as a safe lifestyle haven. Prices in prime areas like the Loire Valley, the Dordogne, and Provence are up 2–4%, with a premium for well-preserved châteaux and Manoirs due to scarcity and history.

Challenges include energy-efficiency regulations that ban G-rated rental properties and extend to F-rated homes by 2028, prompting renovations or price cuts of 10–15%. Looking to 2026, the market for French châteaux should stay stable but selective, offering opportunities in renovation projects, especially in less touristy, more affordable regions. The opportunity remains for buyers willing to handle the intricacies of restoration and compliance.

Buyer Demographics

International demand remains robust, especially from American buyers, who remain very active in the market. Interest from the US has increased by 30% compared to 2024, highlighting France’s appeal as a long-term investment and lifestyle destination. German, Dutch and Scandinavian buyers are also more engaged, while British demand has levelled off after the post-Brexit adjustments.

Domestic buyers are gradually becoming more active, driven by stabilising interest rates and better credit conditions. French households are showing renewed confidence, particularly in areas where prices have stabilised or where economic prospects are favourable. But affordability still poses a challenge, with many buyers adopting a cautious approach, focusing on properties that offer long-term value and energy efficiency.

Economic and Policy Influences

Interest rates have stabilised around 3% to 3.2%, a notable improvement from the higher rates of 2023 and early 2024. This has made mortgages more accessible, especially for first-time domestic buyers and residents seeking to upgrade. However, banks remain cautious, demanding larger deposits and scrutinising affordability more carefully, particularly for international buyers and non-residents seeking a French mortgage.

New regulations, particularly those related to energy efficiency, are significantly impacting the market. The ban on renting properties with the lowest energy ratings (G-rated) since January 2025 has prompted landlords to invest in upgrades, with many spending around €20,000 to improve their properties’ ratings. This has resulted in a two-tier market, where energy-efficient homes are in high demand and command higher prices, while less efficient properties are becoming more difficult to sell or rent.

The European Central Bank’s decision last week to maintain its deposit rate at 2%, marking the fourth consecutive pause, signals a period of monetary stability that is beginning to alleviate pressure on the French property market. With inflation now effectively controlled and borrowing conditions progressively improving, buyer confidence has received cautious yet positive reinforcement.

Although the current environment presents a valuable opportunity, residual uncertainty persists, particularly regarding the timing and magnitude of future rate adjustments, which may continue to impact affordability in the forthcoming months.

Rental Market and Investment Trends

Rental demand remains strong in urban areas, especially in cities like Lyon, Toulouse, and Nantes, where yields have reached 5.1%. However, the new DPE regulations have posed challenges for landlords, with G-rated properties now unlettable and F-rated ones set to follow in 2028. This has led to a shortage of rental stock in some regions, pushing rents higher and boosting the value of energy-efficient properties.

Luxury properties and new builds continue to attract buyers, particularly in growth areas such as Occitanie and the French Alps. The luxury market remains resilient, with high-net-worth individuals continuing to invest in premium properties. New-builds are also experiencing a modest recovery, supported by government incentives and tax breaks, though volumes still fall short of pre-2022 levels.

Currency and Global Factors

Exchange rates have played a significant role in shaping the market in 2025. The relative strength of the U.S. dollar against the euro in late 2025 has continued to make France an attractive destination for American buyers, while the pound’s performance has presented more challenges for British purchasers, potentially reducing their purchasing power in the French market.

New travel rules to the EU and global economic uncertainty, including trade tensions and recession fears, have had a mixed impact on the French property market. While some investors have adopted a wait-and-see approach, others view property and France as a haven, especially in the current climate.

Expert Insights and Predictions

Professionals in the market, including notaries and estate agents, describe 2025 as a year of transition. The recovery is viewed as positive but fragile, with ongoing economic and geopolitical uncertainties requiring vigilance. 

The general consensus is that although the market is improving, it is not yet out of the woods, and further challenges could still lie ahead. Looking towards 2026, the outlook is cautiously optimistic. If interest rates stay stable and economic conditions improve, the market could continue its recovery. 

Any increase in interest rates or new economic shocks might slow down the current momentum. The core factors of location, property condition, and pricing will remain vital, and buyers and sellers alike will need to stay informed and adaptable.

For now, the French property market presents a window of opportunity, especially for those aiming to invest in energy-efficient properties or prime locations. As always, working with experienced professionals and staying up to date with the latest trends will be crucial to making the most of current market conditions.

2025 was a year of recovery, characterised by stable prices, improved access to credit, and strong foreign demand. However, regulatory pressures and economic uncertainty mean that 2026 requires a careful strategy.

From all of us at My-French-House.com, happy holidays and a prosperous 2026!