The French real estate market shows cautious signs of recovery, with second-hand home prices climbing 0.7% year-on-year in the third quarter of 2024. This positive shift follows ten straight quarters of falling prices, particularly in the sought-after Ile-de-France region.
Apartments Lead the Growth
According to the latest Notaires-INSEE reference index released Thursday, apartment prices saw the most significant increase—up 1.3% in a year. House prices crept up by a modest 0.2%. In greater Paris (Ile-de-France), prices nudged up by 0.2% over the previous quarter, marking the first positive shift after a long period of decline. Parisian apartments stood out with a 1.1% rise.
Markets Stabilize, Transactions Increase
France’s property market is showing more activity: an estimated 921,000 existing home transactions were recorded in the 12 months to September, compared to 907,000 just three months prior. Nationwide, prices for second-hand homes remained stable between April and June.
Outside the capital region, prices were nearly flat quarter-over-quarter (-0.1%) but up 0.7% over the year. Second quarter price changes were also revised upwards, reflecting unexpected resilience.
Buyers Return as Interest Rates Fall
Driving this turnaround is the recent drop in mortgage rates, which now average 3.24% over 20 years—down from 3.37% at the end of 2024 (according to Capfi). Lower borrowing costs are boosting the purchasing power of households and encouraging both first-time and returning buyers.
This rate relaxation, combined with sellers adjusting prices, is increasing market stability and confidence. Industry association FNAIM projects 940,000 annual transactions in 2025, up 11% from this year—a clear sign of renewed momentum.
Recovery Not Uniform Across France
Despite this renewed activity, not all regions are experiencing the same uptick. Certain areas are driving price growth, while others remain subdued. Negotiation is regaining importance, indicating that while the market is picking up, dramatic price surges are not expected in the immediate future.
Rental and Renovation Challenges Remain
Despite more transactions, France’s rental market continues to face pressure, particularly due to new regulations targeting energy-inefficient properties. Renovation constraints also challenge landlords and may affect long-term supply.
In summary, the French second-hand real estate market is turning a corner as falling interest rates revive buyer confidence and transaction activity. While moderate price gains suggest a measured recovery, uncertainties remain—but for now, the outlook is notably brighter than it has been in years.
Find the latest updates on the France real estate market and discover what these trends could mean for buyers, sellers, and investors in 2026 and beyond.
