Engel & Völkers’ Jan 2026 update: French luxury property rebounded 20% in 2025, with price stabilization, wider gaps for exceptional homes, and nearly 40% off‑market deals in prime areas.
France’s high-end property market returned to growth in 2025 after two difficult years, driven by renewed activity, stronger professional advice and a surge in discreet transactions, according to an Engel & Völkers market update published on 13 January 2026.
The headline figure: Engel & Völkers France reported over 20% growth in activity nationally in 2025, with the group recording “a record increase in our market share,” said Christophe Michel, President of Engel & Völkers France. At the same time, overall domestic sales are expected to approach roughly 940,000 transactions — a bounce from 2024 but still short of the 2022 peak.
Market patterns and price dynamics
• Prices broadly stopped falling in 2025, but territorial disparities are widening. Exceptional properties and prime locations are outperforming more standard stock, widening the price gap between the very best and the rest.
• Energy performance increasingly matters: apartments classified G (the most energy‑inefficient “thermal sieves”) can suffer discounts of up to about 12% versus similar properties rated D.
• Buyers are selective: renovated apartments and homes in top micro‑locations command priority, while the quality of renovation and location are decisive in negotiations (typically 7–15% off the asking price).Paris: micro‑markets tell different stories
Paris shows contrasting dynamics across arrondissements:
• The Marais remains sought after — the Engel & Völkers Paris Marais team closed more than 30 deals in Q4 2025 with an average basket around €1.3M; international buyers make up 35–40% of demand.
• The Latin Quarter and Saint‑Germain (5th and 6th) remain reference neighbourhoods. In the 6th, average baskets exceed €3M; a 50 m² apartment can trade between €14,000 and €17,000/m².
• The 7th has seen transaction volumes jump by more than 50%, with prices from €14,000–€15,000/m² near Gros‑Caillou to as high as €30,000/m² for Champ‑de‑Mars views; roughly 40% of deals are handled off‑market.
• The north of the 16th recorded a 59% rise in mandates versus 2024. About 40% of buyers are foreign and roughly half of acquisitions there occur without mortgage financing.Côte d’Azur: second‑home stronghold with international buyers
The Riviera remains a premier luxury destination:
• Around 65% of sales are second homes and the average transaction basket exceeds €2M along the coast.
• Foreign buyers account for more than 70% of purchases, particularly from the U.S., Scandinavia and German‑speaking countries.
• Markets differ: Nice holds value (≈€5,800/m²), Cannes reaches over €30,000/m² for exceptional offers, and Saint‑Tropez posts a median near €12,100/m² — climbing to €50,000/m² for extraordinary villas.Lyon and other trends
Lyon’s market is stabilizing, with apartment prices near €4,450/m² and houses around €5,080/m². Emerging investment pockets include Gerland and Confluence.
Off‑market growth and the rising role of advisers
Nearly 40% of significant luxury transactions are now concluded off‑market in certain Parisian areas, reflecting a client preference for discretion. Professionals report that the sector is becoming more sophisticated: “It is no longer enough to publish an ad, we must know how to orchestrate the transaction, advise, adjust, support,” said Guillaume Elvira, Director of the Paris 8th agency.
Macro context and prospects for 2026
Broader economic signals remain mixed. Loan activity for rental investment has fallen sharply (a 40% drop in loans for rental investment between 2022 and 2024) even as household savings rose above 18% of income in mid‑2025 — a level not seen in four decades. For 2026, the outlook points to a more selective, quality‑driven luxury market: sellers need realistic pricing, buyers seek turnkey, renovated homes, and professional advisory services are central to closing deals.
Key takeaways
• Engel & Völkers France grew over 20% in 2025.
• Energy‑inefficient properties (class G) can be penalized by up to ~12%.
• The Côte d’Azur: >70% foreign buyers; ~65% of sales are second homes.
• Renovated apartments and prime locations are prioritized.
• Nearly 40% of high‑end transactions are off‑market in some Paris areas.
• Negotiation ranges commonly 7–15% off asking prices.
