French Property Market Rebounds: Signs of a Stronger 2025 Ahead
After a period of uncertainty, the French property market is showing clear signs of recovery. The first half of 2025 has brought renewed energy to the market, with both prices and transaction volumes ticking upward across many parts of the country.
According to the latest data from PAP.fr and a recent market update from Bati Today, sales of existing homes (l’immobilier ancien) rebounded in the first half of the year, hinting at a turning point for the French property market. This momentum is being driven by falling interest rates, increased buyer confidence, and more realistic pricing strategies from sellers.
“We’ve definitely seen a shift this year,” says Tim Swannie, Director of Home Hunts. “After a quieter period in 2023 and early 2024, international and domestic buyers alike are returning to the market. Lending conditions have improved, and there are still some really good deals to be done, but there’s a general feeling that now is a good time to buy before prices climb further.”
Key Cities Leading the Way
The recent data from PAP.fr’s Observatory shows modest but consistent price increases in several major French cities over the past three months, signaling early signs of recovery:
City | 3-Month Price Change
Nice | +1.9 %
Marseille | +1.7 %
Toulouse | +1.5 %
Lille | +1.1 %
Montpellier | +1.0 %
This uptick is most notable in southern cities, where warmer climates and lifestyle appeal continue to attract both domestic and international buyers.
Paris: Stabilization After a Two-Year Decline
Even Paris, which had seen slowly declining prices since 2022, is beginning to show signs of stabilization. Over the past six months, average prices in the capital have edged up by +0.4 %. Buyer interest is returning, and properties are selling faster in many central districts.
– The 6th arrondissement remains the most expensive at approximately EUR13,270/m².
Why the Market Is Bouncing Back
Three key factors seem to be fueling this recovery:
1. Rebound in Transactions
According to Bati Today, transactions in the existing property market increased notably in the first half of 2025, thanks to stabilized borrowing conditions and renewed buyer interest. Analysts predict over 900,000 sales for the full year if current trends continue.
2. Falling Mortgage Rates
After peaking in 2023, interest rates have gradually decreased, improving affordability and prompting many postponed purchase plans to move forward. Mortgage accessibility is now much better than a year ago.
3. Improved Buyer Sentiment
Despite ongoing geopolitical uncertainties globally, French consumers remain relatively optimistic about property as a safe and stable investment.
“We’re seeing more serious buyers who are ready to move,” adds Tim Swannie. “France doesn’t have a ‘boom and bust’ property market, so even when there is a decline, we never see a crash in prices but the market can slow, as we have seen over the past 18 months or so. The mood has certainly shifted in 2025, from ‘wait-and-see’ to proactive searching. Many of our recent sales were with clients who have been watching the market with us for the past couple of years, they have felt that now is the time for them to buy. That’s encouraging for both buyers and sellers’
Geopolitical Factors: So Far, Limited Impact
While conflicts in Ukraine, the Middle East, and other regions are ongoing, France’s property market remains largely unaffected. Inflation is under control, mortgage offers are competitive, and the eurozone economy has held steady.
Advice for Sellers: Realistic Pricing is Crucial
With buyers returning, but still cautious, correct pricing is essential to attract attention and secure a sale. Overpricing remains the biggest barrier in today’s climate.
Here are some quick tips for sellers:
– Price accurately using local experts, DVF data (Demande de Valeurs Foncières) and recent local comparables.
– Avoid inflated listings: Pricing too high can place your property in the wrong search bracket.
– Stay flexible: The market is improving, but competition remains strong.
What to Expect of the French Property Market for the Rest of 2025
Experts predict a continued uptrend through the second half of the year. PAP.fr forecasts average national price growth of around +2 %, and if mortgage rates continue to fall, transaction volumes could return to pre-2020 levels.
Home Hunts Key Takeaways:
– Buyers: Now is a good time to act. Lower borrowing costs and increasing buyer demand mean competition will only grow in the coming months.
– Sellers: Be realistic, properties priced correctly are moving quickly, especially in southern markets and lifestyle destinations.
– Investors: Take advantage of stabilised prices and growing rental demand, especially in hotspots.
“We’re confident that the worst is behind us,” concludes Tim Swannie. “France remains a dream destination for many, and the current conditions make it a particularly attractive time to buy or sell.”
Home Hunts are buyer’s agents, we are here to help you to find luxury property in France, Spain, Monaco or Switzerland. If you would like to speak to one of the team to discuss your needs or just to have a chat about the French property market, you can call us on +33 970 44 66 43 or send us a mail to info@home-hunts.com.
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