Authored by the expert who managed and guided the team behind the France Property Pack
Everything you need to know before buying real estate is included in our France Property Pack
France's property market has reached a turning point in June 2025, presenting unique opportunities for buyers.
After three years of declining prices and reduced transaction volumes, the market is showing clear signs of stabilization and recovery, with mortgage rates becoming increasingly favorable and major infrastructure projects on the horizon.If you want to go deeper, you can check our pack of documents related to the real estate market in France, based on reliable facts and data, not opinions or rumors.
| Factor | Status | Does it make it a good time to buy? |
|---|---|---|
| Property Prices | Stabilized after 3-year decline | ✓ Yes - Bottoming out |
| Mortgage Rates | 2.95-3.16% (declining) | ✓ Yes - Improved affordability |
| Market Inventory | 803,000 transactions annually | ✓ Yes - Good selection available |
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Fact-checked and reviewed by our local expert
Maxence Toulouse 🇫🇷
General Manager of Iddyl Property
Are current property prices in France offering good opportunities for buyers in June 2025?
Property prices in France are currently presenting excellent opportunities for buyers after nearly three years of market correction.
Paris properties now average €9,400-9,500 per square meter, representing a modest decline from peak levels while showing clear signs of bottoming out. Lyon offers attractive value at approximately €4,400/m², while Marseille presents even better opportunities at €3,500-4,500/m² depending on the district. Secondary cities and suburban areas are showing particularly strong demand, suggesting these markets may see price appreciation first.
The stabilization phase we're experiencing in June 2025 typically represents the optimal entry point for property buyers. Transaction volumes have increased to 803,000 annually as of February 2025, up from the October 2024 low, indicating renewed market confidence and buyer activity. This combination of stabilized prices and increasing transaction volumes suggests the market has found its floor.
International buyers benefit from favorable exchange rates, with the euro remaining relatively weak against major currencies like the US dollar and British pound.
The current market conditions offer a rare window where buyers can negotiate effectively while still having good inventory to choose from.
As of today, is there more demand from buyers or supply from sellers in the French property market?
The French property market in June 2025 is experiencing a rebalancing between buyers and sellers, with demand beginning to outpace supply in key areas.
After several years of buyer hesitancy due to high interest rates and economic uncertainty, the recent ECB rate cuts have brought buyers back to the market in significant numbers. Paris's most desirable neighborhoods are seeing renewed competition, with properties in the 7th, 8th, and 16th arrondissements attracting multiple offers within days of listing. Cities like Lyon and Marseille still offer buyers more choice and negotiating leverage, though this advantage is diminishing.
Supply remains adequate in most regions, particularly in suburban areas and medium-sized cities. However, quality properties in prime locations are becoming scarcer, especially those with energy ratings of A-C that comply with new rental regulations. Estate agents report that well-priced properties in good condition are selling within 30-45 days, compared to 60-90 days in 2024.
The market dynamics currently favor decisive buyers who can act quickly when they find suitable properties.
It's something we develop in our France property pack.
What are the mortgage rates for property buyers in France today, and are they favorable?
Current mortgage rates in France are highly favorable compared to recent years, creating excellent financing conditions for property buyers.
As of June 2025, French residents can secure mortgage rates between 2.95% and 3.16% for 15-20 year loans, with the best profiles qualifying for rates as low as 2.85%. Non-resident buyers face slightly higher rates ranging from 3.2% to 4.3%, depending on their profile, deposit size, and chosen lender. These rates represent a significant improvement from the 4-5% rates that were common throughout 2023-2024.
The European Central Bank's June 2025 rate cut, bringing the deposit rate to 2.00%, has created an environment conducive to further rate reductions. Banks are competing aggressively for quality borrowers, offering attractive fixed-rate mortgages that protect buyers from future rate volatility. For perspective, a €300,000 mortgage at today's rates costs approximately €1,600-1,700 monthly, compared to over €2,000 at 2024 peak rates.
French banks remain conservative in their lending criteria, maintaining debt-to-income ratios at 35% maximum, which ensures market stability while protecting borrowers from overextension.
The combination of lower rates and stable lending standards creates ideal conditions for sustainable property investment.
What types of properties offer the best value in France today?
Several property types stand out as exceptional value propositions in France's current market.
Suburban apartments in the Paris region, particularly in Seine-Saint-Denis and Val-de-Marne, offer prices 40-50% lower than central Paris while benefiting from the Grand Paris Express connectivity. These areas are seeing rapid gentrification and infrastructure improvements. City center studios in Lyon and Marseille, priced between €150,000-250,000, generate rental yields of 3-4% and appeal to young professionals and students.
| Property Type | Location | Investment Potential |
|---|---|---|
| Suburban Apartments | Paris suburbs (Grand Paris Express zones) | High - Infrastructure-driven appreciation |
| Renovation Projects | Rural areas within 1 hour of major cities | High - 30-40% value uplift potential |
| Energy-Efficient New Builds | All major cities | Medium-High - Rental regulation compliance |
| Family Homes | Nantes, Toulouse, Bordeaux | Medium - Steady appreciation |
| Student Studios | University cities | Medium - Stable rental demand |
Properties near future Grand Paris Express stations offer particularly strong potential, with the new metro lines scheduled for completion by 2031.
Energy-efficient properties rated A-C command premium rents and avoid the new rental restrictions affecting poorly insulated homes, making them increasingly valuable in the current regulatory environment.
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How do current acquisition costs in France impact foreign property buyers?
Acquisition costs in France remain substantial but predictable for foreign buyers, requiring careful budget planning.
Total costs typically range from 7-8% of the purchase price for existing properties. Notary fees constitute the largest component at 7-8% for existing properties or 2-3% for new builds. Transfer taxes (DMTO) are increasing by 0.5% as of April 2025, potentially reaching 5% in most departments. Estate agent fees, usually 5-7%, are often included in the listing price but should be verified.
Foreign buyers face additional costs including translation and legal fees (1-2% for non-French speakers), mortgage arrangement fees (1-2% of loan amount), and potentially higher insurance premiums. For a €400,000 property purchase, foreign buyers should budget approximately €32,000-36,000 in acquisition costs. While these costs are higher than in some European countries like Spain or Portugal, they're comparable to Germany and remain transparent throughout the process.
The recent DMTO increase adds roughly €2,000 to costs on a €400,000 purchase, but this modest increase doesn't significantly impact the overall investment case given the favorable market conditions.
Strategic buyers can minimize costs by purchasing new builds, which carry lower notary fees and often include modern amenities that reduce future maintenance expenses.
What is the outlook for French property prices in the next 12-24 months?
Property prices in France are projected to show modest growth of 2-4% annually through 2025-2026, marking the end of the correction phase.
Paris is expected to lead the recovery, with prime areas potentially seeing 3-5% appreciation as international buyers return and the Grand Paris Express nears completion. Lyon and Bordeaux are forecast to experience steady 2-3% annual growth, supported by strong local economies and ongoing infrastructure improvements. Secondary cities like Nantes and Toulouse may surprise with 4-5% growth due to remote work trends and quality of life advantages.
Key drivers supporting price growth include the ECB's monetary easing cycle continuing through 2025, French inflation stabilizing below 2%, improving mortgage credit availability, and recovering foreign buyer interest. Major infrastructure projects like the Grand Paris Express will add significant value to connected areas, with properties near new stations potentially seeing 10-20% premiums by completion.
However, the market is entering a phase of sustainable, moderate growth rather than another boom cycle. Price increases will be supported by fundamentals rather than speculation, creating a healthier long-term investment environment.
It's something we develop in our France property pack.
Are French banks currently lending favorably to non-resident property buyers?
French banks have become more accommodating to non-resident buyers in 2025, though requirements remain stricter than for residents.
Non-residents can typically borrow 70-85% of the property value, with most banks requiring deposits of 25-30%. EU citizens generally receive more favorable terms than non-EU buyers, who may need to provide 30-40% deposits. This represents a significant improvement from the 50% deposit requirements some banks imposed during the 2023-2024 credit crunch.
Key lending conditions include debt-to-income ratios capped at 35% including insurance, comprehensive income documentation requirements, and strong credit history verification. Many banks require non-residents to open French bank accounts with minimum deposits ranging from €5,000-10,000. Banks like BNP Paribas, Crédit Agricole, and specialized lenders such as France Home Finance actively court international buyers with dedicated English-speaking teams.
The improving rate environment and competition among lenders have created better conditions for non-resident financing than seen in recent years. Some banks now offer pre-approval certificates valid for 3-4 months, allowing buyers to search with confidence.
Non-residents should expect the mortgage process to take 8-12 weeks from application to funding.
How do the new 2025 rental regulations affect property investment returns in France?
The 2025 rental regulations significantly impact investment strategies but don't eliminate opportunities for savvy investors.
Short-term rental restrictions now require mandatory registration by May 2026, with properties limited to 90 days per year for primary residences. Energy performance requirements ban G-rated properties from rental markets, with F-rated properties following by 2028. Tax deductions have been reduced to 50% for classified tourist rentals and 30% for non-classified properties, substantially impacting net yields.
| Rental Type | Key Restrictions | Impact on Returns |
|---|---|---|
| Short-term (Airbnb) | 90-day limit, registration required, energy standards | 30-40% reduction in potential income |
| Long-term unfurnished | Rent controls in tight zones, energy requirements | 10-15% reduction in rental growth |
| Long-term furnished | Less restrictive, 1-year minimum contracts | Minimal impact, remains viable |
Despite restrictions, long-term rentals in secondary cities like Marseille and Toulouse can still generate 3-4.5% gross yields.
Investors focusing on energy-efficient properties (A-C rated) and avoiding oversaturated short-term rental markets can achieve sustainable returns while complying with all regulations.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of France. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
What major infrastructure developments in France will impact property values through 2025-2026?
France is undertaking transformative infrastructure projects that will significantly impact property values across multiple regions.
The Grand Paris Express, Europe's largest transport project, will add 68 new metro stations and 200km of track by 2031, with several lines opening in 2025-2026. Properties within 500 meters of new stations are already seeing buyer interest increase, with expected appreciation of 10-20% upon line completion. The Lyon-Turin high-speed rail link, scheduled for 2032 completion, will reduce travel times dramatically and boost property values in Lyon's eastern suburbs and Alpine regions by an estimated 5-10%.
Marseille's €5 billion urban renewal program, running through 2030, is transforming the city center and port areas. Early investors in renewal zones could see 8-12% appreciation as neighborhoods gentrify and attract new businesses. Bordeaux's metro extension, completing in 2026-2027, will connect suburban areas to the city center, driving 5-8% price increases along new lines.
The national 5G rollout, reaching full coverage in major cities by 2026, will enhance property values in business districts and tech hubs by 2-3%. Smart city initiatives in Nice, Toulouse, and Nantes are creating innovation districts that attract startups and young professionals.
Strategic property buyers should prioritize locations near these infrastructure improvements for maximum appreciation potential.
Is France's property market more attractive than neighboring countries for international buyers today?
France offers unique advantages compared to other European property markets in June 2025.
Unlike Spain, which is considering a 100% tax on non-EU property buyers, France maintains complete ownership freedom for all nationalities without restrictions or special taxes. While Spanish coastal properties offer higher rental yields of 4-6%, France provides better long-term capital appreciation potential and market stability. The French legal system offers superior property rights protection compared to Italy, where complex bureaucracy and unclear regulations can complicate ownership.
Germany's major cities like Munich and Frankfurt have higher property prices than comparable French cities, with stricter rental regulations that limit investment returns. Portugal's Golden Visa program attracts investors, but property prices in Lisbon and Porto have inflated beyond fundamental values. France's infrastructure quality, from high-speed rail to healthcare systems, surpasses most European neighbors.
France's key advantages include transparent legal processes, no ownership restrictions, excellent infrastructure, strong tenant and landlord protections, and cultural appeal that ensures consistent rental demand. While rental yields are lower than Spain or Portugal at 2-4.5%, France offers better risk-adjusted returns and market liquidity.
The combination of lifestyle appeal and investment security makes France particularly attractive for long-term international buyers.
What are the specific opportunities and challenges for non-EU property buyers in France as of June 2025?
Non-EU buyers, including UK citizens post-Brexit, face specific considerations but enjoy significant opportunities in France's property market.
France imposes no ownership restrictions or limits on foreign buyers, unlike many countries that restrict non-resident ownership. Favorable exchange rates, particularly for USD and GBP holders, effectively reduce property prices by 10-15% compared to 2022 levels. French banks actively lend to non-EU buyers, though typically requiring 30-40% deposits compared to 20-25% for EU citizens.
Key challenges include the 90-day visa-free limit per 180 days without a residence permit, making long-term stays complex without proper visa arrangements. Mortgage applications require extensive documentation, including certified translations of financial statements and tax returns. France offers no "golden visa" program through property investment, unlike Portugal or Greece.
- Partner with bilingual property professionals familiar with international transactions to navigate language and legal complexities
- Secure mortgage pre-approval before property hunting to strengthen negotiating position
- Budget 35-40% of purchase price for deposit and acquisition costs
- Consider SCI (Société Civile Immobilière) structure for estate planning and tax optimization
- Research long-stay visa options if planning extended residence
- Focus on liquid markets like Paris, Lyon, and Nice for easier future resale
It's something we develop in our France property pack.
Given all current factors, should international buyers purchase French property in June 2025?
Based on comprehensive market analysis, France presents a compelling opportunity for property buyers in June 2025.
The convergence of stabilized prices after three years of decline, improving mortgage rates now below 3.2%, and strong long-term fundamentals creates an optimal entry point. Property prices have found their floor, with early indicators suggesting the recovery phase is beginning. Major infrastructure projects like the Grand Paris Express will drive future appreciation, while current inventory levels still favor buyers in negotiations.
Key factors supporting immediate action include the ECB's accommodative monetary policy likely continuing through 2025, strengthening transaction volumes indicating market confidence, and the euro remaining relatively weak against major currencies. Political stability has improved compared to 2024's uncertainty, and French property rights remain among the strongest globally.
While tightened rental regulations require careful investment planning, buyers focusing on long-term appreciation rather than short-term yields will find excellent opportunities. The window of opportunity with current favorable conditions may close within 6-12 months as the recovery gains momentum.
International buyers who act decisively in June 2025 can benefit from both immediate value and long-term appreciation potential in one of Europe's most stable property markets.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
June 2025 represents an advantageous moment for property acquisition in France, with the market transitioning from decline to recovery.
Mortgage rates have become favorable again, prices remain below peak levels, and the fundamental strengths of the French property market - legal security, lifestyle appeal, and infrastructure quality - remain intact. While challenges exist around rental regulations and acquisition costs, the overall investment case is strong for buyers who act within the next 6-12 months before the recovery gains momentum.
Sources
- Global Property Guide - France Price History
- Optimhome - Real Estate Market June 2025
- Esales International - French Property Market Outlook 2025
- Properstar - France Real Estate Guide
- Cointribune - Real Estate Transactions 2025
- French Notaries' Real Estate Market Report
- Paris Property Group - French Mortgages 2025
- France Home Finance - Best French Mortgage Rates
- Capifrance - Mortgage Rates April 2025
- European Central Bank - June 2025 Decision
- Service-Public.fr - Property Regulations
- Cabinet Roche - Seasonal Rentals France 2025