The French real estate market is experiencing dynamic shifts in 2025, according to the latest LPI-IAD real estate barometer. While the market for second-hand (old) properties was rebounding earlier in the year, recent data shows that momentum is slowing—though prices continue to edge upward. Here’s a closer look at what’s driving these trends, and how they differ depending on region and property type.
Mixed Signals: Sales Slowing, But Prices Still Rising
After a strong recovery throughout the beginning of 2025, the second-hand property market is now losing steam. The traditional post-summer rebound in sales was less robust than usual, with sales pace slowing markedly in September and even more so in October. Experts point to rising mortgage interest rates and political uncertainty as major factors dampening market activity.
However, in spite of the fewer transactions, prices in the old property market keep climbing. Year-on-year, prices for old homes rose 1.9% in October 2025—apartments saw a 2.1% increase, while houses were up by 1.7%. This resilience is largely because of the tight supply: with so few properties available, sellers are not feeling pressure to lower their asking prices.
Regional Differences: Not All Markets Are Equal
It’s important to recognize that this slowdown isn’t uniform across France. A quarter of the regions are feeling the chill most sharply:
- Rhône-Alpes, Alsace, and Midi-Pyrénées: Real estate activity dropped by about 10%.
- Pays-de-la-Loire and Nord-Pas-de-Calais: Sales declined slightly.
- Auvergne, Centre, and Upper Normandy: The market is stagnating, holding steady with little movement.
On the other hand, some regions are bucking the slowdown:
- Aquitaine, Champagne-Ardenne, and Franche-Comté: Here, sales continue to grow, thanks to high demand and persisting buyer interest.
Rising Prices: A Challenge for Buyers
Despite fewer sales, the ongoing rise in prices continues to impact buyers—especially first-timers and lower-income households. Sellers, aware of the scarcity of available properties, remain confident they can achieve high prices. This trend affects both urban and rural areas, making it tough for many to enter the property market.
New Properties: Houses Up, Apartments Down
When it comes to new real estate, the market tells two stories:
- New Houses: Both sales and prices are on the rise, with prices jumping 2.2% year-on-year.
- New Apartments: The market remains sluggish, continuing a two-year downward trend. High prices appear to be discouraging buyers, causing volumes to fall.
What’s Next for French Real Estate?
Rising credit rates and ongoing political uncertainties are likely to shape the market in the coming months. For now, the high prices—fueled by limited supply—show no sign of abating, even as sales slow in many areas. Buyers will need to keep a close eye on both regional trends and borrowing conditions as 2026 progresses.
Stay tuned for the latest updates and expert insights on the French real estate market.
