Explore the February 2025 rise in France real estate prices across 50 largest cities, marking a significant shift in the real estate market.
In a remarkable turn of events, the France’s real estate market has experienced a resurgence, with property prices witnessing a notable uptick for the first time in five years. According to data from SeLoger, February 2025 marked a pivotal moment, as prices for both houses and apartments rose by a modest 0.1% at the national level, with metropolises reflecting the same increase and rural areas slightly outperforming at 0.3%.
This resurgence is particularly pronounced across the 50 largest cities in France, where a majority are experiencing price hikes. Noteworthy examples include Besançon, where apartment prices surged by 1.4%, alongside Brest and Clermont-Ferrand, both recording increases of 1.4% and 0.7%, respectively. Le Mans also joined the fray with a commendable 1% rise. The metropolises are not lagging behind either; Lyon and Montpellier reported increases of 0.6% and 0.9%, respectively. Even the capital, Paris, which has been on a downward trajectory for several months, saw a slight rebound with a 0.2% increase, bringing the average price of apartments to a staggering 9,385 euros per square meter.
However, it is worth noting that Nantes stands as an outlier among the ten largest cities, experiencing a decline of 1% in January 2025. This price fluctuation is particularly striking given that January is typically characterized by a lull in real estate transactions, akin to a post-holiday hangover.
The resurgence in demand can be attributed to a significant decline in mortgage rates since the summer of 2024, which has catalyzed buyers to translate their aspirations into tangible purchases, thereby impacting prices. This upward trend is expected to persist into the first half of 2025, as the inventory of available properties for sale diminishes after a prolonged period of growth. The strong demand signals a robust return of buyers to the market, suggesting that prices are poised for further increases.
Moreover, financial institutions have re-engaged with the market, reopening the credit floodgates in response to falling mortgage rates. They are actively courting new clients to meet their credit production targets, which is likely to further stimulate demand and, consequently, prices.
The trajectory of this price increase hinges significantly on the forthcoming decisions of the European Central Bank regarding its key interest rates. Should the bank opt to continue its trend of lowering rates, the demand is expected to escalate, propelling prices even higher. Thus, the France’s real estate market is poised for an intriguing chapter, one that may well redefine the market dynamics in the months to come.
