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As we reach mid-2025, the French residential property market stands at a crucial turning point.
After experiencing significant declines through 2023 and 2024, recent data suggests the market is stabilizing with signs of recovery emerging across various regions. This comprehensive analysis examines whether property prices in France are truly on the rise, providing essential insights for potential buyers and investors.
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.
Property prices in France are showing signs of recovery in 2025, with the first positive annual growth of 0.5% in Q1 after six quarters of decline.
The market is stabilizing with medium-sized cities leading the recovery, mortgage rates settling around 3%, and transaction volumes increasing by 13% from their 2024 lows.
| Indicator | Current Status (June 2025) | Trend |
|---|---|---|
| National Average Price | €2,930-€3,060 per m² | ↑ Stabilizing |
| Paris Average Price | €9,355-€9,520 per m² | → Flat to slight increase |
| Year-over-Year Change (Q1 2025) | +0.5% | ↑ First positive change in 6 quarters |
| Transaction Volume (12 months to March 2025) | 880,000 sales | ↑ Up from 777,000 low |
| Average Mortgage Rate (20 years) | 3.16% | ↓ Down from 2024 peaks |
| 2025 Price Forecast | +1% to +2.5% | ↑ Modest growth expected |
| Strongest Markets | Medium-sized cities, coastal areas | ↑ Leading recovery |
| Weakest Markets | Some regional centers | ↓ Continued decline |
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
What are the current average property prices in France as of June 2025?
The national average price for residential properties in France currently stands at €2,930 to €3,060 per square meter.
This represents a stabilization after the decline period of 2023-2024. However, significant regional variations exist across the country. Paris commands premium prices at €9,355 to €9,520 per m², approximately three times the national average.
Coastal resorts maintain strong appeal with average prices of €4,514 per m², while premium Côte d'Azur locations reach €14,000 to €16,000 per m². Provincial cities generally range from €1,500 to €2,500 per m², offering more affordable entry points for buyers.
These figures reflect a market that has found its footing after a period of adjustment, with prices no longer in freefall but showing modest recovery signs. The market demonstrates renewed stability with clear regional differences based on location desirability and local economic conditions.
It's something we develop in our France property pack.
How much have property prices changed in the first half of 2025?
The first quarter of 2025 marked a significant turning point for the French property market with prices increasing by 0.5% year-over-year.
| Property Type | Annual Change | Quarterly Trend |
|---|---|---|
| Apartments | +0.7% | Positive momentum |
| Detached houses | +0.3% | Stabilizing |
| Paris apartments | -0.2% annually | +1.1% quarterly |
Which French cities are experiencing the biggest property price increases in 2025?
Several medium-sized cities are leading the market recovery with impressive price gains.
| City | Price Increase | Key Driver |
|---|---|---|
| Montauban | +6.2% | Quality of life appeal |
| Metz | +3.4% | Economic development |
| Caen | +3.2% | University city dynamics |
| Orléans | +3.1% | Paris proximity benefits |
| Limoges | +2.8% | Affordable entry prices |
| Brest | +2.5% | Coastal lifestyle demand |
Where are property prices still declining in France?
Despite the overall recovery trend, several areas continue experiencing significant price declines.
Châteauroux leads with a substantial -16.2% drop, followed by Corse-du-Sud at -14.0% and Reims at -11.0%. Tours and Amiens round out the list with declines of -9.9% and -9.6% respectively.
Even in Paris, central arrondissements are still seeing modest price drops, while outer districts show stabilization or slight increases. These declining markets typically face challenges such as economic stagnation, population decline, or oversupply issues that prevent them from participating in the broader recovery.
The divergence between growing and declining markets highlights the importance of location selection for property investors. Areas with structural economic challenges or demographic headwinds continue to struggle despite improving national conditions.
Understanding these local dynamics is crucial for making informed investment decisions in the current market environment.
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What are the current mortgage rates in France?
As of June 2025, average mortgage rates in France have stabilized at historically reasonable levels.
Ten-year loans average 2.97%, while 15-year loans sit at 3.08%. The most popular 20-year mortgages carry an average rate of 3.16%, with 25-year loans at 3.26%. The best borrower profiles can secure rates just below 3%, representing a significant improvement from the peaks of 2023-2024.
These rates result from multiple European Central Bank rate cuts since mid-2024, which have helped restore buyer purchasing power and market confidence. The stabilization of rates has been a key factor in the market's recovery, making property purchases more accessible for both domestic and international buyers.
Competitive mortgage conditions combined with stabilizing prices create favorable financing opportunities for qualified borrowers.
How does the 2025 transaction volume compare to previous years?
Transaction volumes have shown remarkable recovery from their 2024 lows.
The market hit bottom with 777,000 transactions in late 2024, but has since rebounded to 880,000 sales in the 12 months to March 2025, representing a 13% increase. This recovery from the 2023 annual volume of 780,000-822,000 transactions indicates renewed market confidence.
February 2025 data showed 803,000 transactions, confirming the steady recovery trend. The increase in transaction volume signals improved conditions for both buyers and sellers, with more properties changing hands as market participants regain confidence.
This rebound in activity levels suggests the market has moved past its correction phase and entered a period of sustainable growth.
It's something we develop in our France property pack.
Which property types are seeing the strongest price performance in 2025?
Apartments are outperforming houses in the current market recovery.
Urban apartments lead with +0.7% annual growth, particularly strong in medium-sized cities where lifestyle changes and remote work trends drive demand. Coastal properties maintain premium pricing at an average of €4,514/m², reflecting sustained interest in lifestyle locations.
Second-hand properties are driving the recovery, especially in provincial areas where buyers seek value. Rural houses benefit from the continuation of pandemic-era lifestyle shifts, attracting buyers seeking space and quality of life. New builds remain stable but face constraints from construction slowdowns and higher material costs.
The apartment sector's stronger performance reflects urban demand recovery and the return of investor interest in rental properties, particularly in university towns and employment centers.
What are the property price forecasts for France in 2026 and beyond?
Expert predictions for the French property market show cautious optimism across different time horizons.
Short-term forecasts for 2025-2026 predict national average growth of 1% to 2.5%, with high-demand areas potentially seeing up to 4% increases. Paris and major cities are expected to grow 1% to 2%, while medium-sized cities could see 2% to 5% gains.
Medium-term projections over 5-10 years anticipate moderate annual growth of 2-3%, with regional hubs and secondary cities expected to outperform. Paris will likely maintain its premium status with steady but unspectacular growth.
Long-term outlooks over 20 years remain positive, supported by demographic trends and continued urbanization. While cyclical downturns remain possible, the overall trajectory points to sustained demand driven by population growth and evolving lifestyle preferences.
Sustainability requirements and energy efficiency standards will increasingly influence property values in the coming decades.
We made this infographic to show you how property prices in France compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It's an easy way to spot where you might get the best value for your money. We hope you like it.
How does France's property market compare to other European countries in 2025?
France's property market shows relative stability compared to European neighbors.
| Country | 2025 Price Trend | Average Mortgage Rates | Market Status |
|---|---|---|---|
| France | +1-2.5% | 3.0-3.5% | Stabilizing, attractive rates |
| Germany | +2-3% | 3.5-4.5% | Berlin cooling, regions stable |
| Spain/Portugal | +4-6% in hotspots | 3.5-4.5% | Strong recovery |
| UK | Flat/modest growth | 4.0-5.0% | Uncertain, regional divergence |
| Eastern Europe | +4-6% | 4.0-5.0% | Strong urban growth |
What factors are driving the property market recovery in France?
Five key factors support the current market stabilization and growth.
Lower mortgage rates, down from 2024 peaks, have significantly improved affordability for buyers. Government incentives supporting first-time buyers and energy-efficient renovations provide additional market stimulus. Pent-up demand from buyers who waited during the 2023-2024 downturn is now returning to the market.
International buyer interest has increased due to currency advantages for non-euro investors and France's stable legal framework. The continuation of remote work trends drives demand in regional cities, as buyers seek better quality of life outside major metropolitan areas.
These combined factors create a supportive environment for sustained market recovery through 2025 and beyond, with different regions benefiting to varying degrees based on their specific characteristics.
It's something we develop in our France property pack.
What risks could cause French property prices to decline again?
Despite positive trends, several risks warrant consideration for potential buyers and investors.
Interest rate spikes from sudden ECB policy changes could dampen demand and reduce buyer purchasing power. Political instability stemming from ongoing fiscal challenges and government uncertainty poses risks to market confidence. Economic downturn leading to rising unemployment would directly impact buyer confidence and transaction volumes.
Overvaluation concerns in premium markets may lead to corrections, particularly in areas that have seen rapid price growth. Changes in global investment patterns could reverse international demand, especially if alternative markets become more attractive.
While these risks exist, current market fundamentals suggest they are manageable rather than imminent threats to the recovery trajectory.
Should international buyers consider French property investments in mid-2025?
International buyers find several advantages in the current French market.
Favorable conditions include mortgage rates below 3% for strong profiles and currency advantages for many non-euro buyers. France offers a stable legal framework with strong property rights protection and growing rental demand in tourist and urban areas. The market remains less overheated than Spanish or Portuguese hotspots.
Key opportunities exist in medium-sized cities offering value and growth potential. Coastal properties maintain long-term appeal for lifestyle and investment purposes. Paris outer arrondissements show recovery signs with more accessible price points. Rural properties benefit from lifestyle trends and remote work adoption.
The combination of market stabilization, reasonable financing, and diverse opportunities makes France an attractive option for international property investment in 2025.
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.
Yes, property prices in France are going up, marking a clear reversal from the decline period of 2023-2024.
While the growth is modest at 0.5% annually in early 2025, with forecasts of 1-2.5% for the full year, the trend is decidedly positive. The recovery is led by medium-sized cities, apartments, and coastal areas, while some regional markets continue to adjust. With stabilized mortgage rates around 3%, improved transaction volumes, and strong fundamentals, the French property market offers a balanced opportunity for both investors and those seeking relocation. The market has moved from correction to recovery phase, making it an opportune time for buyers who have been waiting on the sidelines.
Sources
- Global Property Guide
- INSEE (National Institute of Statistics)
- Adrian Leeds Property Insider
- Adrian Leeds Property Insider Archives
- BlueSky France Finance
- International Investment
- Cointribune
- Esales International
- Cointribune Transactions Report
- Realting Market Analysis
- Capifrance Mortgage Report
- Paris Property Group
- France Home Finance
- Tanit Immobilier
- Amundi Research Center
- Varso Invest
- Capifrance June Report
- Beaux Villages
- Batinfo Notaries Report
- Worldwide Property