France’s real estate prices for old properties surged by 3.1% this summer (September 2025), especially for houses. See why prices are rising, which cities lead, where sales are slowing, and what buyers and sellers need to know.
Despite economic anxiety and tighter lending policies, France’s real estate market is heating up once again. According to the September 2025 LPI-iad barometer, old (second-hand) property prices surged 3.1% over the last three months—a dramatic momentum not seen since early 2020. Let’s break down what’s fueling this seasonal spike, which cities and property types are leading the trend, and what it means for buyers, sellers, and investors navigating the ever-evolving French property market.
Old Properties Heat Up: National and Local Price Spikes
- National posted price increase (last 3 months): +3.1%
- Apartments: +2.6%
- Houses: +4.0%
- Annual increase (as of August 2025): +1.7% nationwide
- 66% of cities with 40,000+ people saw prices rise
The price spike in summer 2025 is broad-based but has been particularly fierce for houses, still driven by strong demand and a persistent preference for single-family living. Apartments have also rebounded, with their annual price uptick now nearly catching up to houses.
Tracking the Price Dynamics by Region and City
Ile-de-France: Leading the Upswing
After a brief cool-off this spring, Ile-de-France saw renewed price gains:
- 63% of larger cities had apartment price rises (up from 51% in May)
- House prices grew in 57% of cities (from 53% in May)
- Larger urban centers (100,000+ residents): Apartment prices up in 75% (vs. 63% in May)
Other Regions See Mixed Fortunes
- Provinces: Price momentum slowing, though still positive (68% of cities see increases)
- Sales Surge: In Aquitaine, Nord-Pas de Calais, and PACA, transactions were up 25%—driven by limited new supply and resilient demand.
- Slowdown: Regions like Alsace, Lorraine, Burgundy, and Limousin are lagging as tight economic conditions bite, especially for buyers without large deposits.
Where Prices Are Rising (and Falling) Fastest
Apartments:
- Biggest annual price jumps: Brest & Montpellier (+5% to +6%)
- Continued declines: Bordeaux, Lille, Lyon, Nantes, Rennes, Le Havre, Amiens, Saint-Etienne
- Urban centers here are losing appeal as homebuyers head towards more affordable or suburban alternatives.
Houses:
- Top gainer: Brest Métropole (+6.0%)
- Also rising: Nancy, Nice, Rennes, Rouen metropolises
- Declines: Lyon, Nantes, Strasbourg (Eurometropole at –6.4% YoY), and Toulouse
The urban demand shift is clear: buyers with the means are targeting outlying municipalities (where individual houses are seen as safer and more future-proof), while the supply in city centers struggles to match demand or is simply too pricey.
Negotiation Margins and Market Outlook
Rising prices haven’t cooled seller ambitions; this summer, negotiation margins hit new highs:
- Overall: 8.9% (up 34% YoY)
- Houses: 9.4% (up 35%)
- For large houses (6 rooms+), margins approach 10%
- For smaller homes (4 rooms or less), 8% (up 25%)
- Apartments: 8.4% (up 32%)
- For 3 rooms or less: below 8%
- For 5 rooms or more: nearly 10% (up 45%)
This is driven by both high expectations from sellers and a widening gap between asking prices and what buyers—many constrained by tighter credit policies—can actually pay.
What’s Driving These Trends?
Several factors explain the summer’s surging prices:
- Strong demand for houses and larger apartments, especially from wealthier and dual-income households.
- Tight supply in city centers and most popular regions.
- Credit rationing by Banque de France, impacting first-time buyers but less so for those with larger down payments.
- Seasonal trends typically show a summer pause, but this year posted prices bucked the pattern.
- Resale chains unlocking: As sellers become buyers elsewhere, the market shows more liquidity.
Not All Sunshine: Slow Sales and Cautious Demand
While prices rose, transactions tell another story:
- August sales down 34.6% month-on-month (normal summer drops are ~25%)
- Causes: Political uncertainty, rising unemployment, sluggish growth, restricted purchasing power, and creeping mortgage rates (though rate hikes may slow, if the ECB cuts rates as expected this autumn)
Year-to-date (January–August):
- Sales increased 17.2% compared to 2024
- If autumn follows last year’s slow pace, total annual growth might end at just 7.7%—still positive, but underwhelming for many.
What Does This Mean for Buyers & Sellers in France?
For Sellers:
Seller ambition is high—if you’ve got a desirable house or large apartment, you can command top prices, but expect to negotiate more unless you’re in a hot region like Ile-de-France, Aquitaine, or PACA.
For Buyers:
You’ll face stiff prices in most of France, especially for houses and in big cities’ outer suburbs. However, negotiation margins are growing, giving room for discounts—especially if you’re flexible about location or size.
For Investors:
With prices rebounding after a sluggish 2024, the French real estate market remains robust—but the focus is on established buyers with strong financial profiles.
The French real estate market in summer 2025 is marked by strong price gains in the old property sector, particularly for houses. But a two-speed market is emerging: sales are surging in dynamic regions with resilient demand, while more affordable provinces slow down. As mortgage rules clamp down and economic uncertainty weighs on demand, both buyers and sellers must be nimble—negotiation is key, and regional trends matter more than ever.
