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What will happen in the real estate market of South West France? Will property values rise or fall? Is Bordeaux still a prime location for international buyers? How are local government policies and taxes shaping the real estate landscape in 2025?
We’re frequently asked these questions because of our deep involvement in this market. Through our collaborations with notaries, real estate agents, and clients purchasing properties in South West France, we’ve gathered firsthand insights.
That’s why we crafted this article: to deliver clear answers, insightful analysis, and a comprehensive perspective on market predictions and forecasts.
Our aim is straightforward: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.
1) Investment property profits in tourist areas will drop due to stricter short-term rental rules
Stricter regulations on short-term rentals are shaking up the property market in tourist hotspots like South West France.
In places such as Villefranche-sur-Mer, new rules limit short-term lets to one property per tax household for six years, non-renewable. This change means property owners can't rent out multiple homes for short stays, which could seriously dent their rental income.
France has also introduced a national registration system to keep tabs on all short-term rental listings. This system makes it easier for authorities to ensure compliance, potentially leading to hefty fines for rule-breakers. In Paris, for instance, non-compliance can result in fines of up to 50,000 euros per dwelling and a penalty of up to 1,000 euros per day per square meter until resolved.
These financial penalties are a big deal for property investors, as they can significantly cut into profits. With fewer short-term rental listings expected, especially in urban centers, prices for tourists might rise, but property owners will have fewer chances to earn from short-term stays.
Some owners might switch to long-term leases, which could ease the housing market pressure but might not be as lucrative as short-term rentals. This shift could change the landscape for investors looking to maximize their returns.
Sources: Connexion France, Rental Scale-Up, French Entree
2) Property prices in the Basque Country will rise due to cultural appeal and better transport links
The Basque Country has been experiencing a steady rise in property prices, largely due to its cultural appeal and improved transport links. In 2023, the house price index for new and existing homes reached a 10-year record, indicating a strong demand for properties in the region. This trend is expected to continue as more people are drawn to the area's unique cultural offerings and improved accessibility.
Tourism in the Basque Country saw significant growth in 2023, with tourism expenditure increasing by 29.6% compared to 2022. This surge in tourism highlights the region's growing appeal as a travel destination, which in turn boosts the demand for property. The influx of tourists and new residents contributes to the local economy, further driving up property prices.
Media coverage has played a crucial role in promoting the Basque Country as a top cultural destination. Bilbao, in particular, is gaining recognition for its modern art and authentic Basque culture, attracting both tourists and potential residents. This increased interest from international buyers is reflected in the robust demand for properties, with median prices for apartments and houses indicating a healthy real estate market.
Sources: Statista, Eustat, Travel and Tour World
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) Older property values in South West France will rise due to new tax incentives for eco-friendly renovations
In 2023, the French government boosted eco-friendly home renovations by adding €300 million to the MaPrimeRénov’ scheme.
With this extra funding, homeowners in South West France are seeing a surge in property value as they make their homes more energy-efficient. The region is buzzing with activity, with up to 100,000 properties being renovated annually, making it a hotspot for eco-conscious buyers.
Buyers are increasingly drawn to homes with sustainable features like improved insulation and energy-efficient systems. These upgrades not only cut down on utility bills but also increase the property's market value, making them a smart investment.
Eco-friendly renovations are not just about saving money on utilities; they also make homes more appealing to potential buyers. This trend is particularly strong in South West France, where the demand for sustainable homes is on the rise.
Investors are taking note of the long-term financial benefits of these renovations. As more homes become energy-efficient, their attractiveness to buyers and investors grows, leading to higher sales prices.
With new tax incentives in place, older properties in South West France are set to see a boost in value. These incentives make it easier for homeowners to invest in eco-friendly upgrades, enhancing the overall appeal of their properties.
Sources: Connexion France, Danijela Quenzler, French Entree, French Property
4) More foreign buyers will invest in South West France because of good exchange rates and lifestyle attractions
Foreign buyers are increasingly targeting South West France for property investments, and there are a few key reasons for this trend. In 2023, the Creuse Department saw over 8% of its property sales made by non-resident foreign buyers, drawn by the low property prices and the beautiful countryside. This shows a clear interest from international investors in the region.
Favorable exchange rates have also played a significant role in making South West France more attractive to foreign buyers. When the Euro is strong against other major currencies, it makes French property more affordable for international investors, encouraging them to invest in the region.
The lifestyle appeal of South West France cannot be overlooked. The region's tourism growth, with international visitors contributing significantly to the economy, highlights its attractiveness. Additionally, ongoing infrastructure improvements, such as high-speed rail connections, enhance accessibility, making it even more appealing to foreign buyers.
Sources: French Property Market Report 2023, Notaires.fr, WTTC Report, World Travel & Tourism Council, Real Estate Market Insights, ASEAN UP
5) Inheritance tax law changes will affect property transfer and ownership in South West France
In 2023 and 2024, changes in French inheritance tax laws have had a noticeable impact on property transfer and ownership patterns, particularly in regions like South West France. The increase in the tax-free allowance for children from €100,000 to €150,000, along with a new allowance for grandchildren, has made it more appealing for families to pass on their properties to the next generation. This means that more families are likely to transfer property ownership to their children and grandchildren, reducing the tax burden significantly.
Additionally, the tax-free allowance for non-residents was increased from €1,594 to €100,000 in 2020, making France a more attractive destination for foreign property buyers, especially from the UK. This change has likely led to an increase in property transfers and ownership in South West France, as more non-residents consider purchasing property in the region. The combination of these tax incentives has encouraged both local and foreign families to invest in property, potentially altering the demographic and ownership landscape.
Furthermore, the changes in inheritance tax laws have prompted property owners to review their estate planning strategies. The introduction of new laws affecting forced heirship rules has required property owners in South West France to adapt their planning to avoid these rules, influencing how properties are retained and transferred. Legal and financial advisors have noted an increase in the use of strategies like French marriage contracts or SCI (société civile immobilière) to navigate these changes, further impacting property transfer patterns.
Real estate economists have forecasted that these tax law changes will continue to influence property markets by making it easier for families to pass on their assets. This could lead to an increase in property transfers and ownership in South West France, as families take advantage of the more favorable tax conditions. The shift in ownership patterns may also be reflected in demographic studies, which show a widening gap in wealth held by different generations, with older generations retaining more wealth.
Sources: Inheritance Tax France - Ultimate Guide, Is a France where privilege trumps merit inevitable?, Important update for owners of French property
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6) Asian investors will explore South West France’s property market due to its growth potential and tourism appeal
Asian investors are eyeing South West France for its booming tourism and growth potential.
Tourism in France is on the upswing, with a 12.1% annual growth rate from 2022 to 2025. South West France is a key player in this surge, making it a hot spot for those wanting to tap into the tourism wave.
The region is also seeing a boost in infrastructure, which is set to attract more visitors and investors. While specifics are scarce, the overall trend in tourism infrastructure investment is positive, making South West France more accessible and appealing for property buyers.
South West France is gaining traction among Asian tourists, especially from China. The main travel routes between Paris and the South are bustling with activity, hinting that Asian tourists are already exploring this charming region.
With its picturesque landscapes and cultural allure, South West France is becoming a favorite among Asian travelers. This growing interest could soon translate into increased investment from Asia, as investors look to capitalize on the region's appeal.
As the region continues to develop, the combination of tourism growth and improved infrastructure makes South West France a prime target for property investment from Asia.
Sources: Nexus DMC, Atlantis Press
7) Demand for modern apartments and co-living spaces will grow as young professionals move to South West France
In recent years, we've seen a noticeable shift in where young professionals choose to live in France. Rising property prices in major cities like Paris and Lyon have made these areas less affordable, prompting many to look for alternatives. Cities in South West France, such as Bordeaux and Nice, have become attractive options due to their lower costs and better quality of life.
The increase in remote work opportunities has also played a significant role in this trend. With more companies offering remote positions, professionals are no longer tied to urban centers and can choose to live in more scenic and relaxed areas like South West France. This flexibility has made the region even more appealing.
Moreover, the French government has been actively encouraging young professionals to move to less populated areas through various incentives. These initiatives aim to attract young talent and entrepreneurs, leading to the development of modern apartments and co-living spaces in the region. Improved transportation links have further facilitated this movement, making it easier for professionals to commute or travel for work.
Co-living spaces have gained popularity among young professionals, offering a social and affordable lifestyle with modern amenities. Companies are investing in these projects, recognizing the demand for shared accommodations. Surveys have shown that young professionals prioritize lifestyle quality and work-life balance, and South West France offers the perfect blend of beautiful landscapes and a relaxed atmosphere.
Investment in infrastructure and amenities in the region has been on the rise, attracting those seeking a modern and vibrant lifestyle. Media coverage and social media trends have highlighted the region's appeal, showcasing the opportunities and lifestyle available. Demographic studies confirm an influx of younger populations, with cities like Bordeaux and Nice becoming hubs for remote work and entrepreneurship.
Real estate market reports indicate a growing demand for modern apartments, driven by young professionals seeking affordable and stylish living spaces. Testimonials from those who have relocated to the region often emphasize the improved work-life balance and quality of life. Local government initiatives continue to attract young talent and entrepreneurs, further boosting the region's appeal.
Sources: ETIAS France, Connexion France, French Entree, Onefinestay, Coliving.com
8) Demand for larger homes with flexible layouts will grow in South West France as multi-generational living becomes more popular
In recent years, particularly in 2023 and 2024, there has been a noticeable increase in multi-generational households in France. According to EUROSTAT, 5.50% of households now consist of three or more adults, highlighting a growing trend towards families living together under one roof.
This shift is reflected in the real estate market in South West France, where there is a rising demand for larger homes with flexible layouts. Families are increasingly seeking homes that can accommodate extended family members, as noted in various market reports.
Consumer surveys have shown a preference for adaptable living spaces, such as open floor plans or bonus rooms, which can be reconfigured to meet the diverse needs of multi-generational families. This trend is further supported by demographic studies indicating an aging population, which necessitates homes that can comfortably house elderly family members alongside younger generations.
Sources: EUROSTAT, NW Bank, Sutter and Nugent
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) Urban property prices in South West France will drop slightly as people relocate to suburbs and rural areas
In recent years, particularly in 2023 and 2024, there has been a noticeable shift in population movement from urban centers to suburban and rural areas in South West France. This trend is largely driven by the aftermath of the COVID-19 pandemic, where many French homeowners have opted for properties that offer more space and gardens, which are more readily available outside the city.
Surveys have shown a growing preference for larger living spaces and a desire to be closer to nature. This has made suburban and rural areas more attractive compared to the smaller apartments typically found in urban centers. Additionally, the rise in remote working opportunities has allowed more people to live further from their workplaces, encouraging relocations to less crowded and more scenic areas.
Economic reports have highlighted the affordability of properties in suburban and rural areas compared to urban centers. The cost of living, including rising energy prices, has put a strain on household budgets, making it more challenging for local buyers to afford properties in urban areas. Furthermore, the urban rental market has become saturated, reducing the incentive for people to purchase properties in cities when renting is a viable option.
Sources: Long Term Rentals in France, Adrian Leeds Group
10) Property prices in South West France will grow moderately as demand for homes with outdoor spaces increases
The residential real estate market in South West France is on the rise as more people crave properties with outdoor spaces.
In recent years, there's been a noticeable uptick in the sales of homes with gardens, terraces, and even vineyards. This isn't just a random trend; it's driven by folks looking for a quieter, more spacious lifestyle, especially those escaping the hustle and bustle of city life. People are increasingly drawn to the tranquility and charm of the countryside, making South West France a hot spot for such seekers.
Surveys show that city dwellers have a strong preference for homes with outdoor areas. The shift to remote work has made this even more appealing, as many are relocating to regions like South West France. The picturesque landscapes and improved work-life balance are big draws for these new residents.
Tourism growth in the area has also sparked interest in property investment, adding to the demand. Local governments are jumping on this trend, promoting rural living and enhancing infrastructure, which makes these areas even more attractive. These initiatives are making a noticeable impact on the real estate market.
Historical data backs up this trend, showing that property values in the region have been stable or on the rise. This stability reflects the enduring appeal of South West France. Buyers see it as a solid investment, whether for personal use or as a rental property.
With all these factors at play, it's no wonder that the real estate market in South West France is experiencing moderate price growth. The combination of lifestyle changes and strategic local initiatives is creating a perfect storm for property demand.
Sources: Beaux Villages, Foothills of France
11) Property prices in Lot-et-Garonne will fall as fewer young people move there
The Lot-et-Garonne region is facing a challenge with its aging population. From 2010 to 2021, the percentage of people aged 60-74 increased significantly, while the younger population, particularly those aged 0-14, has been declining. This shift in demographics suggests that fewer young families are settling in the area, which can impact the demand for housing.
Moreover, the region struggles with limited job opportunities, which is a crucial factor for younger professionals when choosing where to live. While there are job openings in the broader Nouvelle-Aquitaine area, many are specialized and may not appeal to a wide range of young workers. This lack of diverse job prospects can lead to a net outflow of younger residents seeking better opportunities elsewhere.
Additionally, Lot-et-Garonne's rural nature might not align with the preferences of younger generations, who often favor urban living for its cultural amenities, educational institutions, and connectivity. The region's limited transportation infrastructure and amenities make it less attractive to younger people, further contributing to the challenge of attracting and retaining them.
Neighboring regions like Nouvelle-Aquitaine and Occitanie are drawing in younger residents, which is reflected in their stable or increasing property prices. In contrast, Lot-et-Garonne might see a decrease in property prices due to its struggle to attract younger demographics. The lack of local government initiatives to address these issues could exacerbate the situation, leading to a surplus of properties on the market and a subsequent drop in prices.
Sources: INSEE, English Jobs, eSales International
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12) Property price growth in Bordeaux will slow as more people choose suburban areas
The city of Bordeaux is expected to see a slowdown in property price growth as more people choose to live in suburban areas. This trend is supported by several factors that have been observed over the past few years.
Firstly, the population in the suburbs around Bordeaux has been increasing significantly. The urban agglomeration, which includes these suburban areas, is projected to reach over a million people by 2025. This indicates a growing preference for living outside the city center, where there is more space and potentially a better quality of life.
Additionally, there has been a noticeable increase in the sales and development of suburban housing projects. This suggests that more people are being drawn to these areas, likely due to the appeal of larger living spaces and a more relaxed environment. Improved transportation links between Bordeaux and its suburbs have also made these areas more accessible, further encouraging this shift.
Moreover, the trend of remote work has allowed people to live further from city centers, making suburban living more feasible and attractive. This, combined with reports of congestion and high living costs in Bordeaux's city center, has contributed to the growing appeal of the suburbs.
Sources: Macrotrends, Global Property Guide, World Population Review
13) Property prices in rural South West France will rise as remote work grows and people seek quieter living
In recent years, particularly in 2023 and 2024, we've seen a significant shift towards remote work, which has led to an increased demand for rural properties. This trend is expected to continue as more people seek quieter, more sustainable living environments. The southwest region of France, with its beautiful countryside and historic villages, is particularly attractive to those looking for a better quality of life.
Unlike urban centers, which experienced sharp falls in property prices in 2024, rural areas in the southwest of France have shown price stability and even slight increases. This resilience indicates a stronger underlying demand and less market volatility. The affordability and lifestyle appeal of the region make it an attractive option for buyers, contributing to its resilience in the property market.
Surveys have shown a growing preference for quieter, rural lifestyles, aligning with the appeal of rural areas in South West France. Additionally, improvements in internet connectivity, such as efforts to enhance fibre optic connections, have made these areas more attractive to potential buyers. The French government has also introduced incentives like zero-interest loans for first-time buyers, supporting rural development and making home buying more accessible.
Sources: Banque de France, Connexion France, Foothills of France, Esales International
14) Rental yields in South West France will rise as more young people and expats seek rentals
Rental yields in South West France are on the rise as more young people and expatriates seek homes there.
In cities like Toulouse and Montpellier, rental demand has surged due to large student populations and expanding job markets. These cities are buzzing with energy, making them attractive for long-term leases, which in turn boosts rental yields.
The region is becoming a magnet for younger families and remote workers, leading to a population boom and a greater need for rental properties. Expatriates are also drawn to the area, lured by its appealing lifestyle and economic prospects, further driving up rental demand.
With housing shortages in popular cities like Toulouse and Montpellier, landlords are seizing the opportunity to raise rental prices. Surveys show that younger populations prefer renting over buying, especially in urban settings where renting is more flexible and affordable.
This combination of factors suggests a strong upward trend in rental yields in South West France. The influx of expatriates is a key driver, pushing rental prices and yields higher.
As demand continues to grow, landlords are likely to see increased returns on their investments, making this region a hot spot for property investors.
Sources: ASEAN UP, Long Term Rentals in France
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) Rental yields in coastal South West France will stay steady because of ongoing demand from tourists and seasonal workers
Rental yields in coastal areas of South West France have stayed stable thanks to a steady stream of tourists and seasonal workers.
South West France is a magnet for visitors, thanks to its beautiful landscapes and rich culture. This makes it a hot spot for short-term holiday rentals, keeping the rental market buzzing. The region's charm ensures that tourists keep coming back, year after year.
Seasonal workers, especially in agriculture and tourism, also play a big role in the rental market. They need places to stay during their work periods, which boosts demand for rentals. Back in 2018, two departments in the region were major hosts for third-country national seasonal workers, showing how crucial this workforce is.
Tourism is a big deal for the local economy, and it helps keep rental demand steady. The money brought in by tourists supports the region and ensures that rental properties remain in demand. The hospitality industry is thriving here, thanks to the area's popularity, which further fuels the need for rentals.
With its consistent tourist influx and seasonal workforce, South West France's rental market is a reliable choice for property investors. The region's appeal isn't just about its scenery; it's also about the economic stability it offers to those looking to invest in property.
Sources: ASEAN UP, Home Affairs
16) Property prices in South West France will level out as the market adapts to economic changes and shifting buyer preferences
In 2025, property prices in South West France are expected to stabilize as the market adjusts to changing economic conditions and buyer preferences. This region has always been attractive due to its beautiful countryside, historic villages, and vibrant towns, drawing both domestic and international buyers. Despite the challenges faced in 2023 and 2024, there is growing optimism for the property market's performance in 2025.
The number of property transactions is anticipated to increase as economic confidence improves and financing becomes more accessible. This is expected to bring transaction numbers closer to pre-slump levels, indicating a healthier market. Additionally, the reduction in interest rates below 3% will make mortgage financing more accessible, further boosting demand in the property market.
Moreover, the southwest region is experiencing an increase in new housing developments, particularly in rural areas. This increase in supply is helping to meet the growing demand for properties, especially those with character like traditional farmhouses or estates with vineyards. The trend towards rural living, driven by demand for space and a higher quality environment, continues to support the market's stability.
Sources: Foothills of France, European Commission
17) Property prices in South West France will keep rising due to low supply and high demand from local and international buyers
In South West France, property prices are climbing due to limited supply and growing demand.
Take Bordeaux, for example, where prices have been on a steady rise, with a +10% increase each year since 2015. Although the pace slowed a bit in early 2023, the scarcity of new housing means prices are unlikely to fall and might even bounce back by 2025.
Geographical and planning restrictions are keeping the supply of houses tight. Many who moved to rural areas are staying put, and current homeowners are holding onto their properties because of the significant price hikes since 2018. This limited supply is a major reason why prices remain high.
On the flip side, South West France is a magnet for international buyers, especially from Northern Europe, thanks to its cultural charm and pleasant climate. The favorable exchange rates add to the allure, making it an attractive investment.
Remote working trends have also spurred domestic migration to the region, further fueling the demand for homes. People are drawn to the idea of living in a picturesque setting while working from home, which has boosted the local property market.
Overall, the combination of limited supply and increasing demand from both domestic and international buyers suggests that property prices in South West France will keep rising.
Sources: Esales International, Long Term Rentals in France
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.