Authored by the expert who managed and guided the team behind the France Property Pack
Yes, the analysis of Lyon's property market is included in our pack
As we reach mid-2025, Lyon's residential property market presents a complex picture after experiencing significant corrections over the past year. This comprehensive analysis examines current market conditions through 12 time-specific questions to help potential buyers and investors make informed decisions about entering the Lyon property market.
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.
Lyon property prices have declined 4.1% year-over-year as of June 2025, with average prices at €4,576 per m².
Despite recent corrections, the market shows signs of stabilization with improved mortgage rates and strong fundamentals supporting a recovery by 2026.
| Key Metric | Current Status | Year-over-Year Change |
|---|---|---|
| Average Price per m² | €4,576 | -4.1% |
| Apartment Price per m² | €4,854 | -3.8% |
| House Price per m² | €4,660 | -4.5% |
| Most Expensive District | 6th arr. (€5,886/m²) | -2.1% |
| Mortgage Rates (20-year) | 3.15% average | -0.85% |
| Rental Yields | 3-6% | +0.3% |
| Market Forecast 2025-2026 | Stabilization | 0 to +2% |
| Supply vs Demand | Severe shortage | Worsening |
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.
What is the current average price per square meter in Lyon as of June 2025?
As of June 2025, the average price per square meter for residential properties in Lyon stands at €4,576.
This figure represents a consolidated average across all property types and districts, with actual prices ranging from €4,362 to €4,819 per square meter depending on the specific area and property characteristics.
Apartments command a median price of €4,854 per square meter, while houses are slightly more affordable at €4,660 per square meter, reflecting the typical premium for apartment living in urban centers.
The prestigious 6th arrondissement continues to lead the market with prices approaching €6,000 per square meter, while more affordable districts like the 9th arrondissement offer opportunities around €3,720 per square meter.
These price variations create diverse opportunities for buyers with different budgets and investment strategies across Lyon's varied neighborhoods.
How much have Lyon property prices decreased in the last 12 months?
Lyon's property market has experienced a notable correction with prices falling by 4.1% year-over-year as of March 2025.
This recent decline follows an even more dramatic drop in 2024, when prices plummeted by 10.2%, marking the steepest decrease among all major French cities during that period.
The cumulative effect of these corrections means that property prices in Lyon are now approximately 14% lower than their 2022 peak, creating significant opportunities for buyers who were previously priced out of the market.
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This price adjustment represents one of the most substantial market corrections in Lyon's recent history, offering a rare window for strategic property acquisition.
Which Lyon districts are experiencing the biggest price drops in 2025?
The property price corrections vary significantly across Lyon's arrondissements, with some areas experiencing much steeper declines than others.
The 3rd arrondissement has witnessed the most dramatic correction with a 9.7% year-over-year decline, bringing average prices down to €4,215 per square meter.
| District | Year-over-Year Price Change | Current Average Price/m² |
|---|---|---|
| 3rd arrondissement | -9.7% | €4,215 |
| 7th arrondissement | -5.2% | €4,380 |
| 8th arrondissement | -4.9% | €3,950 |
| 9th arrondissement | -4.6% | €3,720 |
| 6th arrondissement | -2.1% | €5,886 |
What are the current mortgage rates for property buyers in June 2025?
Mortgage conditions have improved significantly in 2025, with current rates offering much better terms than the previous year.
For 20-year loans, the average rate stands at 3.15%, with the best rates available at 2.95% for borrowers with strong profiles and substantial down payments.
These rates represent a substantial decrease from the peak of over 4% in 2024, making property purchases approximately €150-200 per month more affordable for a typical €300,000 loan.
The European Central Bank's monetary easing has facilitated this improvement, though banks maintain strict lending criteria with debt-to-income ratios capped at 35% and down payment requirements typically ranging from 10-20%.
15-year loans offer slightly better rates at 3.12% average, while 25-year loans average 3.16%, providing flexibility for different buyer profiles and investment strategies.
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How does Lyon's property market compare to other major French cities in 2025?
Lyon maintains its position as France's third most expensive property market, significantly more affordable than Paris but commanding premium prices compared to most other major cities.
With average prices ranging from €4,362 to €4,819 per square meter, Lyon remains approximately 50% cheaper than Paris, where prices reach €9,355 to €9,468 per square meter.
| City | Average Price per m² (June 2025) | National Ranking |
|---|---|---|
| Paris | €9,355 - €9,468 | 1st |
| Nice | €5,200 - €5,500 | 2nd |
| Lyon | €4,362 - €4,819 | 3rd |
| Bordeaux | €4,401 - €4,934 | 4th |
| Marseille | €3,320 - €3,524 | 5th |
What is the current supply and demand situation for new housing in Lyon?
Lyon faces a severe housing shortage that continues to worsen in 2025, creating fundamental support for property values despite recent price corrections.
New housing starts have declined by 35% compared to 2023, as developers struggle with high land costs and building materials that make new projects economically unviable.
Over 42,000 households currently wait on social housing lists, illustrating the depth of the housing crisis, while available properties for sale have decreased by 22% year-over-year.
Properties in desirable areas typically sell within 45-60 days, indicating continued strong demand despite the price corrections, particularly for well-located and energy-efficient homes.
The government has launched emergency plans to subsidize social housing construction, but the supply deficit continues to provide fundamental support for price stability in the medium term.
Which property types are showing the strongest price resilience in 2025?
Certain property categories demonstrate remarkable price stability or even growth despite the general market correction.
Energy-efficient apartments with A-C ratings command a premium of 15-20% over comparable F-G rated properties, reflecting new regulatory requirements and buyer preferences for lower energy costs.
Modern studios near universities maintain strong values due to consistent rental demand from Lyon's 150,000+ student population, while family apartments with balconies achieve an 8% premium over similar units without outdoor space.
Renovated properties in central districts, particularly in the 1st, 2nd, and 6th arrondissements, continue to attract premium prices as buyers seek turnkey solutions in prime locations.
Smart home-enabled new builds with integrated technology systems represent the cutting edge of the market, appealing to tech-savvy buyers willing to pay premiums for modern conveniences.
What are the latest government regulations affecting Lyon's property market in 2025?
Several new policies implemented in 2025 are reshaping Lyon's real estate landscape and affecting both buyers and investors.
Rent control zones have been strengthened as of January 2025, with annual increases now capped at 3.5%, limiting investor returns but providing stability for tenants.
| Regulation | Implementation Date | Impact on Market |
|---|---|---|
| Rent Control Zones | Strengthened Jan 2025 | Annual increases capped at 3.5% |
| Energy Performance Rules | Feb 2025 | F/G properties banned from new rentals |
| Short-Term Rental Restrictions | March 2025 | Registration required, 120-day annual limit |
| Property Tax Reform | April 2025 | 8% increase for second homes |
| First-Time Buyer Support | May 2025 | Zero-interest loans up to €50,000 |
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.
What are the current rental yields for investment properties in Lyon?
Lyon's rental market offers varied yields depending on location and property type, with student housing providing the highest returns.
Student studios near universities generate gross rental yields of 5.5-6.0%, benefiting from consistent demand and minimal vacancy rates throughout the academic year.
Young professional apartments targeting the 1-2 bedroom market achieve yields of 4.5-5.0%, particularly in areas with good transport links and proximity to business districts.
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Family apartments offer more modest yields of 3.5-4.0%, but provide stability and lower management intensity, while luxury properties in premium districts like the 6th arrondissement typically yield 3.0-3.5%.
What is the property price forecast for Lyon through 2026?
Market analysts project a stabilization phase followed by modest growth as Lyon's property market finds its equilibrium.
For the remainder of 2025, prices are expected to stabilize with growth between 0 to +1%, marking the end of the correction phase that began in 2023.
Looking ahead to 2026, modest recovery is anticipated with price growth of +2% to +4%, supported by improved mortgage accessibility and the chronic housing shortage.
The longer-term outlook for 2027-2030 suggests sustained growth of +3% to +5% annually, driven by Lyon's strong economic fundamentals, population growth of 1.2% annually, and major infrastructure projects including new metro lines.
The consensus among experts indicates that Lyon's property market has found its floor and will begin recovering gradually through 2026.
How are recent interest rate changes affecting buyer activity in June 2025?
The mortgage rate reduction from over 4% to approximately 3.15% has reinvigorated buyer activity across Lyon's property market.
Mortgage applications have surged by 34% compared to Q4 2024, with first-time buyers representing 42% of new applications as improved affordability brings previously sidelined buyers back to the market.
Average loan amounts have increased by €25,000, reflecting buyers' enhanced purchasing power, while properties under €400,000 are now seeing multiple offers in desirable locations.
Negotiation margins have narrowed from 8% to just 3%, indicating a shift in market dynamics as buyer competition increases for quality properties.
Banks report that qualified buyers with 20% deposits can secure rates as low as 2.95%, making homeownership significantly more accessible than during the 2024 peak.
Which neighborhoods offer the best value for property investment in mid-2025?
Based on price-to-growth potential analysis, several Lyon neighborhoods present optimal investment opportunities in the current market.
The 9th arrondissement (Vaise) offers exceptional value at €3,720 per square meter with projected growth of 8-12% over two years, driven by metro expansion and tech hub development.
| Neighborhood | Current Price/m² | 2-Year Growth Potential | Key Advantages |
|---|---|---|---|
| 9th arr. (Vaise) | €3,720 | +8-12% | Metro expansion, tech hub development |
| 7th arr. (Gerland) | €4,380 | +6-10% | Biotech district, university proximity |
| 8th arr. (Monplaisir) | €3,950 | +5-8% | Family-friendly, good schools |
| 3rd arr. (Part-Dieu) | €4,215 | +7-11% | Business district, transport hub |
| Villeurbanne (borders) | €3,450 | +10-15% | Affordable, improving infrastructure |
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.
No, property prices in Lyon are going down - but the decline is moderating, and the market shows clear signs of approaching stabilization.
After a sharp 14% correction from 2022 peaks, Lyon's residential property market in June 2025 presents a compelling opportunity for buyers. With improved mortgage rates, government support for first-time buyers, and a severe housing shortage supporting long-term value, the current market conditions favor those ready to purchase. While prices continue their gradual descent, the pace has slowed significantly, and most experts anticipate a return to growth by 2026. For both investors and owner-occupiers, mid-2025 represents an optimal entry point before the anticipated market recovery.
Sources
- Investropa - Lyon Real Estate Market Analysis
- Global Property Guide - France Price History
- Statista - Lyon Property Prices by District
- Properstar - Lyon House Prices
- Le Bonbon Lyon - Property Price Analysis
- Tanit Immobilier - 2025 Market Outlook
- Capifrance - Mortgage Rates June 2025
- Green European Journal - Lyon Housing Crisis
- Cabinet Roche - Lyon Rent Control Rules
- GuestReady - French Rental Yields Analysis