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
What is happening in France’s real estate market? Are prices climbing or stabilizing? Is Paris still the go-to destination for international buyers? How are France’s government policies shaping real estate taxes and regulations in 2025?
These are the questions we hear daily from industry experts, potential buyers, and sellers across the country, from Lyon to Nice and everywhere in between. You might be curious about these trends too.
We understand this because we maintain close connections with local professionals and individuals like you, exploring the French real estate landscape every day. That’s why we’ve crafted this article: to deliver clear insights, thorough analysis, and a comprehensive view of market trends and dynamics.
Our mission is straightforward: to make sure you feel well-informed and confident about the market without needing to search elsewhere. If you think we’ve missed something or could improve, we’d love to hear your feedback. Feel free to reach out with your thoughts, and we’ll strive to enhance this content for you.
How this content was created 🔎📝
Fact-checked and reviewed by our local expert
Maxence Toulouse 🇫🇷
General Manager of Iddyl Property
1) Investors will keep targeting the French Alps for year-round tourism opportunities
The French Alps are a magnet for investors, thanks to rising tourist numbers.
In winter 2024, the region saw 18.3 million overnight stays, a slight uptick from the previous year. This is part of a larger trend across France, where overnight stays have increased by 1.3 million from 2019 to 2024. The Alps are not just about skiing; they offer a year-round playground for tourists.
Property prices in the French Alps are climbing, especially in the Northern Alps. Over the past three years, prices have jumped by 20%, with costs ranging from €3,574/m² to €4,265/m². In hotspots like Val d'Isère, prices have soared to €16,100/m², showing strong demand and investment potential.
The allure of the French Alps extends beyond winter sports. The region offers activities like hiking, mountain biking, and paragliding, drawing visitors all year. This makes the Alps a prime spot for those eyeing year-round tourism opportunities.
Investors are keen on the French Alps not just for the snow but for the diverse experiences available throughout the year. The region's ability to attract tourists in all seasons is a key factor in its investment appeal.
With its stunning landscapes and variety of activities, the French Alps continue to be a top choice for investors looking to capitalize on year-round tourism. The combination of natural beauty and diverse attractions ensures a steady flow of visitors.
Sources: Statista, Collection Chalet
2) American buyers will increasingly target French properties to diversify their real estate portfolios
American buyers are increasingly interested in French properties, driven by several key factors.
One major reason is the favorable exchange rate between the US dollar and the euro, which in 2024 averaged 0.9232 EUR. This makes French real estate more affordable for Americans. Additionally, the number of Americans moving to France has surged. In 2023, residency cards issued to Americans tripled compared to pre-pandemic years, showing a strong interest in both living and investing in France.
French destinations are becoming more popular among American tourists, which could lead to more real estate investments. The French real estate market is also appealing due to its stability and growth, with an expected increase of 3% in 2025. This stable environment, along with France's renowned healthcare system, makes it an attractive option for Americans looking to diversify their real estate portfolios.
Media coverage and social media have played a role in highlighting the benefits of owning property in France, further driving interest among American buyers. The French lifestyle, with its rich culture and cuisine, is another draw for those considering a move or investment. Moreover, the French countryside offers a serene escape, which is increasingly appealing to those seeking a change from urban life.
In addition to the lifestyle benefits, the French property market offers a variety of options, from charming rural homes to chic city apartments. This diversity allows American buyers to find properties that suit their preferences and investment goals. The French government also provides incentives for property renovations, making it easier for buyers to invest in older properties and increase their value.
With these factors in play, it's no surprise that American interest in French real estate is on the rise. The combination of economic advantages, lifestyle appeal, and market stability makes France a compelling choice for American investors.
Sources: Home Hunts, Exchange Rates, Connexion France, Vendome Property
We have made this infographic to give you a quick and clear snapshot of the property market in France. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
3) New environmental rules will boost the development of energy-efficient homes in France
France is making a big push for energy-efficient homes thanks to new environmental regulations.
These regulations aim to renovate 1 million homes by 2050, a clear sign of France's commitment to cutting energy use and promoting sustainable living. The government is serious about this, offering incentives like the "MaPrimeRénov" programme, which started in 2020. This programme provides grants to help cover the costs of making homes more energy-efficient.
So far, "MaPrimeRénov" has supported over 500,000 projects and plans to retrofit up to 800,000 homes each year. This shows just how dedicated the government is to making energy-efficient homes a reality. If you're thinking about buying property in France, this is something to keep in mind.
New building codes are also in place to ensure that both new constructions and renovations meet high energy efficiency standards. Starting in 2025, properties with a G energy rating will be banned from being rented. This change is expected to increase the demand for energy-efficient homes as property owners rush to meet the new standards.
For potential buyers, this means that investing in energy-efficient homes could be a smart move. Not only will it help you comply with future regulations, but it could also make your property more attractive to renters and buyers who are increasingly looking for sustainable living options.
With these changes, France is setting the stage for a more sustainable future, and buying a property that aligns with these goals could be a wise investment. Energy efficiency is becoming a key factor in the housing market, and staying ahead of the curve could pay off in the long run.
Sources: Schneider Electric Blog, International Energy Agency, Knight Frank
4) Rents in university towns will increase with growing student populations and higher housing demand
The number of students in France has skyrocketed, with over 2.9 million enrolled in 2023/2024.
With this surge in student numbers, university towns are feeling the heat as more students hunt for housing. In July 2024, preleasing rates for Yardi 200 schools hit 89.2%, and some schools even exceeded the 94.6% occupancy level from Fall 2023. This demand is intense, especially in bustling cities like Paris and Lyon, where there's a shortage of about a quarter of a million student housing units.
Even though efforts are underway to build more accommodations, like the 41,432 beds added to Yardi 200 schools in 2024, the supply just can't keep up. The situation is even more challenging with the rise in international students, which jumped by 4.5% in 2023–2024, further squeezing the housing market.
For those considering buying property in these areas, the rental market is buzzing. The influx of students means a steady stream of potential tenants, making it a promising investment opportunity. However, the competition is fierce, and prices are likely to climb as demand continues to outstrip supply.
Investors should keep an eye on these trends, as the student housing market shows no signs of slowing down. The combination of a growing student population and limited housing options creates a dynamic environment for property owners.
In short, if you're looking to invest in property, university towns in France are a hot spot. With student numbers on the rise, the demand for housing is only going to increase, making it a potentially lucrative venture.
Sources: Statista, BDC Network, Businesscoot, Upgrad GSP
5) Middle Eastern buyers will target high-end properties in Paris and the French Riviera
Middle Eastern buyers are zeroing in on luxury properties in Paris and the French Riviera.
In the past two years, transactions for homes over €5 million on Cap d’Antibes have doubled, driven by international interest, especially from the Middle East. This surge highlights the allure of these exclusive areas.
On the French Riviera, 70% of buyers for homes priced over €10 million are international, with many hailing from the Middle East. This is part of a broader trend where ultra-high-net-worth individuals are increasingly choosing the Riviera for second homes.
The luxury goods market in the Middle East, valued at €15 billion in 2023, is booming, and this economic growth is mirrored in real estate investments. The influx of high-net-worth individuals is reshaping the property landscape.
Events like the Paris 2024 Olympic Games and the Tour de France in Nice are further boosting demand. Investors are eager to capitalize on the region’s economic boom and the increased global visibility these events bring.
Sources: The National News, Savills, French Riviera Property
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6) Stricter rental rules will affect the profitability of short-term rental investments
Stricter rental regulations in France are shaking up the short-term rental market.
Since 2023, tax benefits for short-term rentals have been slashed. For unclassified rentals, tax deductions dropped from 50% to 30%, and for classified ones, from 71% to 50%. This change hits casual hosts hard, making short-term rentals less attractive.
Another big shift is the rental day limit for primary residences, now capped at 90 days per year instead of 120. This rule is designed to prioritize long-term housing over tourist stays. Fewer short-term rentals could mean higher prices for tourists, but it also squeezes investor profits.
Looking ahead, energy efficiency rules are tightening. By 2025, properties with a G energy rating can't be rented out. Stricter bans will follow for F-rated homes in 2028 and E-rated homes in 2034. Property owners face hefty renovation costs to comply, which eats into their profits.
These regulations are reshaping the landscape for short-term rental investors. The combination of reduced tax benefits, rental day limits, and energy efficiency requirements is making it tougher to turn a profit.
Sources: Hostaway, Beago.ai, Rental Scale-Up
7) Urban apartments with modern amenities will see increased demand from young professionals
Young professionals are flocking to urban areas in France for better job prospects and modern living.
In recent years, over half of young adults who moved out before 25 chose big cities. They're leaving behind rural areas and small towns, drawn by opportunities for education and work. This shift is reshaping the housing market, with a noticeable uptick in demand for city rentals.
Urban living is becoming more appealing, with rental properties in cities seeing a surge in demand. The French market for condos and apartments is on the rise, thanks to urbanization and the young professionals' preference for compact, convenient homes. This trend is a clear sign of the growing urbanization wave.
When it comes to choosing a place to live, modern amenities top the list for young professionals. Cities like Paris and Lyon are hotspots for digital nomads, offering fast internet and work-friendly spaces. The tech and startup boom in these areas is a magnet for young talent, promising a flexible lifestyle and all the modern comforts.
Paris and Lyon, in particular, have become magnets for digital nomads, thanks to their high-speed internet and conducive work environments. The rise of tech and startup companies in these cities is drawing in young professionals, offering them a modern lifestyle with a good work-life balance.
Sources: Insee, Spherical Insights, Citizen Remote
8) Co-living arrangements will become more popular as people look for community-focused living spaces
The popularity of co-living arrangements is growing as people seek community-oriented living environments.
In France, the demand for co-living spaces is expected to reach 150,000 units by 2025. This surge is driven by the need for flexible and affordable housing as the rental market expands annually by 3-4%. Cities like Angers and Lyon are feeling the heat with intense competition for rentals, making co-living a smart choice for many.
Urbanization is another key factor. As more people flock to cities, the efficient use of space becomes crucial. Co-living maximizes space and offers affordable options in crowded urban areas. In these bustling cities, co-living is not just a trend but a practical solution.
There's also a shift towards sustainable and community-focused living. In 2023, the co-living sector in France attracted €430 million in investments, showing its appeal. Companies like Colonies are at the forefront, creating spaces that emphasize community and sustainability, which resonate with younger generations.
Surveys indicate that over 50% of adults aged 18 to 34 in France plan to move within the next two years. This demographic is particularly drawn to co-living for its sense of community, addressing the loneliness many face. A Meta-Gallup survey found that nearly a quarter of the world feels lonely, and co-living offers a chance for meaningful social connections.
Sources: Businesscoot, Creti, The City Lifer
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.
9) Green spaces and parks will significantly boost property desirability in urban areas
In urban France, green spaces are becoming a top priority for city dwellers.
With over 80% of the population now living in cities, the demand for a better quality of life is on the rise. People are increasingly looking for homes near parks and gardens, which are seen as essential for well-being. In Angers, for instance, the city dedicates 14% of its area to parkland and invests 67€ per resident annually in green initiatives, boosting property values.
It's not just about aesthetics; 80% of French people believe parks are crucial for a good life. This sentiment is driving real estate trends, with more buyers seeking homes close to nature. Nantes, famous for its green projects, is experiencing a surge in property demand, reflecting this shift in preferences.
Health benefits are another reason why green spaces are in demand. In Strasbourg, the city has been managing parks ecologically, enhancing residents' quality of life. Such initiatives are part of a broader movement, with cities like Paris implementing "bioclimatic" plans to create more green areas, addressing both climate issues and housing needs.
These changes are not just local but part of a national trend. As urban areas expand, the value of green spaces is becoming more apparent. Cities are recognizing that parks and gardens are not just nice-to-haves but essential components of urban living.
For potential property buyers, this means that homes near green spaces are likely to be more desirable and valuable. As cities continue to grow, the importance of these areas will only increase, making them a key factor in real estate decisions.
Sources: France24, Paysalia, BCG
10) Occitanie will see rising demand for its sunny climate and lower property prices compared to southern France
The Occitanie region is gaining popularity thanks to its sunny climate and affordable property prices.
In 2023 and 2024, the median price for an apartment in Occitanie was €3,483/m², a stark contrast to the Côte d'Azur, where prices can soar to €6,400/m². This makes Occitanie a smart choice for those seeking more bang for their buck.
With its Mediterranean climate, Occitanie enjoys plenty of sunny days, attracting those who crave a pleasant and warm environment. Many have moved from northern France and beyond, drawn by the region's inviting weather and lifestyle.
The area is also a hit with tourists, logging 27.9 million nights in outdoor accommodations. This tourism boom often leads to increased property interest, as visitors look to buy in places they love.
The rise of remote work has further fueled interest in Occitanie, as people seek out scenic and peaceful spots to call home. This trend is boosting demand for residential properties in the region.
Occitanie's combination of affordability, climate, and lifestyle makes it a compelling option for potential buyers. Its appeal is only set to grow as more people discover its charms.
Sources: Properstar, Tourism Occitanie
11) Lyon’s real estate market will attract young professionals due to its expanding tech industry
Lyon is quickly becoming a tech startup hotspot.
By 2023, the city boasted 135 startups that collectively raised $1.2 billion, creating a thriving ecosystem for innovation. This influx of capital has made Lyon a magnet for tech companies, with over 8,690 firms setting up shop, including big names like Orange. The presence of competitiveness clusters further fuels the growth of tech businesses, making Lyon a prime destination for young professionals eager to dive into a booming industry.
The job market in Lyon's digital sector is buzzing, having seen a 23% growth in jobs from 2015 to 2019. Despite this impressive growth, there's still a hiring shortage, signaling a high demand for skilled professionals. This demand is a beacon for young talent, promising to boost both the local economy and the real estate market.
Lyon isn't just about jobs; it's about lifestyle too. The city has invested heavily in infrastructure to support tech businesses, with tech hubs like Lyon Confluence and Lyon Part-Dieu offering cutting-edge facilities. These areas are not only attractive to companies but also to professionals looking for a vibrant place to work and live.
The rise of coworking spaces in Lyon provides flexible working environments, perfectly catering to the needs of tech professionals. This flexibility is a huge draw for those who value work-life balance and modern workspaces.
Sources: ONLYLYON Business, Seedtable
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12) Virtual reality tours will become more prevalent in France’s real estate market, improving the buying experience
In France, virtual reality tours are transforming the real estate market, making the buying process much more engaging.
Back in 2023 and 2024, over half of French adults had experienced a virtual tour, and a whopping 67% of home buyers wanted this feature when checking out listings. This shift in what buyers want has pushed the real estate industry to embrace virtual reality more than ever.
Homes with virtual tours are a hot commodity, getting 87% more views than those without. Buyers linger 5-10 times longer on these listings, which is a big win for sellers. Properties with virtual tours not only sell for 9% more on average but also close 31% faster. It's no wonder that nearly half of potential buyers are ready to make an offer just from a virtual tour.
The AR & VR market in France is booming, thanks to tech advancements and lower costs of these devices. By 2024, the market was expected to hit $1,425.0 million. The French government is also chipping in with funding and incentives, giving the industry a nice boost.
Real estate agencies across France are jumping on the virtual reality bandwagon, and buyers love it for the convenience and time savings. Tech companies are teaming up with real estate firms to create even better VR solutions, making the whole process smoother and more appealing.
With these developments, virtual reality tours are set to become a staple in the French real estate scene, offering a richer, more immersive experience for buyers.
Sources: Business Wire, A1 Real Estate, PhotoUp, Statista, Beverly Boy
13) Property purchases on the Brittany coast will increase as people seek affordable coastal living
The Brittany coast is becoming a hot spot for property buyers due to its affordable prices.
In 2023 and 2024, Brittany stood out as one of the more budget-friendly regions in France, with property prices averaging €2,050 per square meter, much lower than the national average of €3,302. This affordability is a key factor drawing people to the area.
Over the past two years, the property market in Brittany has seen a 13.5% increase in prices, with a 7.2% rise just last year, bringing the average to €2,996 per square meter. This growth reflects a growing interest in the region, largely due to its cost-effectiveness and charm.
The lifestyle in Brittany's coastal areas is another major attraction. The region offers a unique blend of coastal beauty and rural tranquility, making it an appealing choice for those looking to escape the hustle and bustle of city life. Media reports have even dubbed it an emerging property hotspot.
The shift towards remote work post-COVID-19 has further fueled this trend, as more people seek a better quality of life by moving to these picturesque coastal areas. The ability to work from home has made it easier for people to choose locations based on lifestyle rather than proximity to the office.
With its combination of affordability, natural beauty, and a lifestyle that supports remote work, Brittany is poised to see a continued rise in property purchases. The region's appeal is only expected to grow as more people discover its unique offerings.
Sources: Property Guides, eSales International, French Entree
14) Demand for rental properties in university towns will rise with more international students arriving
France is seeing a surge in international students, especially in its university towns.
In the 2023/24 academic year, France hosted 430,466 international students, which is a 4.6% increase from the previous year. This influx is creating a buzz in the housing market, as these students need places to live.
University towns like Paris and Lyon are feeling the pinch with housing shortages. International students often choose to rent because their stay is temporary, which means rental properties are in high demand.
Real estate investors are catching on to this trend. They're putting more money into rental properties tailored for international students. This is a smart move given the growing need for student housing.
Media reports and market analyses are highlighting this shift. Investors are responding to the demand, and it's becoming a hot topic in real estate circles.
For anyone considering buying property in these areas, the demand for rentals is a key factor to keep in mind. The student influx is reshaping the market landscape.
Sources: The PIE News, ICEF Monitor, ApplyBoard
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.
15) Bordeaux's suburbs will see rising demand with better transport links to the city center
Bordeaux's suburbs are becoming increasingly attractive due to improved transportation links to the city center.
In 2023 and 2024, Bordeaux Métropole renewed its contract with Keolis, leading to the creation of two new tram connections and seven Express bus lines. This expansion increased the network's reach by 13%, making it much easier for suburban residents to commute to the city center. Imagine hopping on a tram and being in the heart of Bordeaux in no time.
The government didn't stop there. They poured resources into transportation infrastructure, boosting cycling provisions by 20% and developing Transport on Demand (ToD) and river shuttles. These enhancements mean that living in the suburbs no longer means long, tedious commutes. Instead, it's about enjoying a more relaxed lifestyle with easy access to the city.
As Bordeaux's city center becomes pricier, more people are eyeing the suburbs for affordable housing. This isn't just a Bordeaux thing; it's a trend seen in many cities where better transport links make suburban living a smart choice. With the city's charm still within reach, the suburbs offer a perfect blend of affordability and convenience.
Locals know that these changes are not just about getting from point A to B. It's about transforming the suburbs into vibrant communities where people want to live. The improved transport links are a game-changer, making suburban life more appealing than ever.
So, if you're considering buying property, keep an eye on Bordeaux's suburbs. With these transportation upgrades, they're set to become even more desirable. The ease of commuting and the promise of a balanced lifestyle are hard to resist.
Sources: Keolis News, Keolis PR, World's Best Cities
16) Demand for properties with sustainable features will grow due to climate change initiatives
In France, climate change initiatives are reshaping the real estate market.
The French government is pushing for eco-friendly home upgrades with incentives like the Climate and Resilience Law and RE2020 regulation. These efforts aim to cut down energy use in buildings, making sustainable properties more appealing to buyers. If you're considering buying a home, these features might not just be a bonus—they could be a necessity.
People are increasingly leaning towards sustainable living, and this is evident in the rising demand for homes with eco-friendly features. In France, energy-efficient homes are selling at a premium, showing that buyers are willing to pay more for sustainability. Green mortgages are also on the rise, offering financial perks for those choosing energy-efficient homes, which further nudges buyers towards these options.
Media coverage on climate change and sustainable living is ramping up, which is boosting awareness and interest in eco-friendly homes. Social media is also playing its part, with trends highlighting sustainable housing as a must-have. This buzz is making sustainable features a hot topic in modern home buying.
Green building certifications like the Sustainable Building Passport and HQE are becoming more common, emphasizing the environmental impact of buildings throughout their life cycle. These certifications are not just badges of honor; they are becoming essential in the real estate market, underscoring the importance of sustainable features in property value.
As climate change initiatives continue to evolve, the demand for properties with sustainable features is likely to grow. This shift is not just about being eco-friendly; it's about future-proofing your investment. If you're in the market for a new home, considering sustainability could be a smart move.
Sources: Economy Finance, EDF HAL, BCG Publications
17) The Alsace region will draw more buyers for its closeness to Germany and cross-border living appeal
The Alsace region is drawing more buyers thanks to its closeness to Germany and the charm of cross-border living.
With property prices soaring in Germany, Alsace stands out as a more budget-friendly option for those wanting to enjoy a culturally rich lifestyle while working across the border. Many Germans are on the hunt for cheaper housing, and Alsace fits the bill perfectly. The region's appeal is further boosted by improved transportation links that make commuting to major German cities a breeze.
People are increasingly drawn to areas with a mix of cultures, and Alsace offers just that. Its unique cultural blend, coupled with its proximity to Germany, provides a diverse living experience that many find irresistible. The presence of international schools, like the International School Strasbourg, highlights the region's attractiveness, catering to global families with bilingual education options.
Alsace's strategic location not only offers a rich cultural tapestry but also practical benefits for those working in Germany. The ease of commuting and the availability of affordable housing make it a prime choice for cross-border living. This trend is supported by market analyses and surveys that show a preference for culturally diverse regions.
Families looking for a balanced lifestyle find Alsace appealing, thanks to its educational offerings and vibrant community life. The growth of international schools is a testament to the region's increasing popularity among expatriates and locals alike. This makes Alsace not just a place to live, but a community to thrive in.
As more people discover the benefits of living in Alsace, its reputation as a desirable location continues to grow. The combination of affordability, cultural diversity, and proximity to Germany makes it an attractive option for many. The region's development is a clear indicator of its potential to become a hotspot for cross-border living.
Sources: Insee, Relocate Magazine, Knight Frank
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.