After three challenging years for France’s real estate market, a glimmer of optimism is finally emerging. The 2025 Real Estate Report from FNAIM (the National Federation of Real Estate Agents) highlights a turnaround in second-hand property transactions, with both activity and prices stabilizing after a period of steep decline and uncertainty.
Key 2025 Real Estate Highlights
- 940,000 second-hand home sales in 2025, a strong increase from the low point of 2024 (845,000 sales)
- Prices rise modestly by +0.8% year-on-year, closely tracking inflation
- Mortgage rates stabilizing around 3%
- Outlook for 2026: Sales could reach between 960,000 and 980,000 transactions
A Fragile but Real Recovery
The market’s early signs of revival were visible as early as January 2025. Following the downturn of the previous years, buyers have cautiously returned, pushing sales of existing homes up by over 11% compared to 2024. In fact, this is the first marked upturn since 2021, indicating fresh demand.
Still, the recovery is fragile. Economic and political uncertainty remain, dampening household confidence. Changes to transfer taxes (DMTO) in most regions and a rental housing shortage are also slowing momentum, causing the rebound to lose some steam in recent months.
Home Prices: A Gentle Rise
After a sharp price dip of -3.5% in 2023 and stabilization in 2024, 2025 saw prices across France’s second-hand home market increase by 0.8%, almost perfectly in line with inflation. The market is also seeing fewer wild regional price swings than in past years.
- Strongest price growth: Île-de-France (+1.6%), suburbs of top 10 provincial cities and medium-sized towns (both +2.1%)
- Small decreases: Paris (-0.5%) and rural communes (-0.1%)
- City-by-city contrast: Some urban areas experienced declines (e.g., Saint-Étienne -2.8%; Grenoble -2.4%; Brest -2.1%). Others, such as Strasbourg (+8.1%), Mulhouse (+7.1%), Caen (+7.4%), and Reims (+7.4%), outperformed the national average.
Long-term price growth endures outside Paris: Over the past decade, values have increased nationwide, except for Paris (-10.4%) and Île-de-France (-5%).
What’s Next for 2026?
FNAIM forecasts continued—but slower—growth. They expect transaction volumes to rise to 960,000–980,000 and prices to climb modestly, by 1–2%. However, enduring political uncertainty and a lack of robust housing policies could temper ongoing recovery.
Bottom Line
France’s second-hand real estate market is on the mend in 2025, with more buyers returning and prices edging up across much of the country. While the recovery remains tentative, these early signs suggest renewed opportunity for home seekers, sellers, and investors keeping a close watch on shifting market conditions.
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