The French real estate market continues to defy expectations, with second-hand property prices reaching historic highs in October 2025—even as demand shows signs of hesitation amid ongoing economic and political instability. According to the latest LPI-iad Barometer, the average price for existing homes has risen by 1.7% year-on-year, hitting €3,377 per square meter nationwide. This surge—remarkable given current uncertainties—highlights deep supply shortages and significant regional disparities across France.
Prices Rise Despite Uncertain Market Conditions
Despite rising mortgage rates and stricter lending policies from the Banque de France, the shortage of properties available for sale is pushing prices higher. Sellers, emboldened by low competition, are holding firm, with apartments averaging €4,045/m² and houses €2,754/m². Some urban markets are experiencing bidding wars, especially in high-demand neighborhoods.
Significant Regional and City Differences
Paradigmatic contrasts remain between French cities and even within urban areas. Paris tops the list at €10,840/m² (+1.6% year-on-year), followed by Nice (€5,625/m², +3.1%) and Lyon (€4,798/m², -0.2%). More affordable options remain in cities like Saint-Étienne (€1,543/m², -5.3%) and Le Havre (€2,310/m², -2.6%). Within Paris, the 6th arrondissement commands the highest prices, exceeding €14,400/m², while outer districts like the 19th and 20th remain more accessible but are rising quickly.
Step outside city borders and the difference is stark: crossing from Paris to its nearby suburbs can lower prices by up to 55%. Similar trends are observed in major cities like Bordeaux, Lyon, and Lille, with price drops between city centers and neighboring towns ranging from 20% to 35%.
Negotiation Margins Reach New Highs
Large negotiation margins have become a hallmark of today’s market. The gap between listed and signed prices sits at €100/m², with an average national negotiation margin of 8.9%—a figure that’s more than doubled since 2021. Margin size varies regionally, peaking in Limousin (over 12%) and tightening in high-demand areas like Rhône-Alpes (just over 5%).
Resale Market Sees Stronger Activity—But Will It Last?
Despite the price surge, trading volumes have rebounded: resale home transactions climbed 16.1% in the first nine months of 2025, and 13.7% in the last quarter alone. This marks a sharp reversal from the downturns of 2022 and 2023. Île-de-France saw the most significant jump in activity, though provincial markets are also on the rise.
New Build Market Lags Behind
In contrast, the new property market remains sluggish. New apartment prices are actually down by 0.9% over the last quarter, and houses by 1%. The average price of new flats is €5,260/m²—a full €1,215 more than their second-hand counterparts—pricing out many first-time buyers.
Looking Ahead: Will the Market Defy Gravity?
The French real estate market is under pressure from both ends: supply shortages are sustaining high prices, even as higher borrowing costs and political instability dampen demand. Regional disparities continue to offer opportunities for buyers willing to look beyond the most sought-after metro areas.
While some experts suggest the fall surge may level off, for now, France’s property prices appear resistant to the challenges that would typically slow a housing market. Buyers and sellers alike will be watching closely in the months ahead to see if these historic highs can be sustained.
Key Takeaways:
- Second-hand property prices up 1.7% year-on-year, average €3,377/m² nationally
- Acute supply shortages and wide regional disparities underpin price growth
- Negotiation margins have ballooned to 8.9%, more than doubling since 2021
- Trading volumes rebounded 16.1% over nine months, but new build market stagnates
- Price gaps between city centers and suburbs/provincial towns remain vast
Stay tuned for further updates as the market continues to astonish buyers, sellers, and analysts across France.
