Century 21 forecasts a rebound in old property sales this year, while rentals and new construction face decline in France’s recovering market.
France’s real estate market is experiencing a notable resurgence, particularly in the realm of older properties, as evidenced by the latest data released by the Century 21 group. Following a tumultuous year in 2024, the outlook for 2025 appears increasingly optimistic, heralding a potential recovery for the sector.
According to Century 21’s recent figures, sales have been on an upward trajectory since the summer of 2024, culminating in a remarkable 20% increase in transactions since the year’s end. This surge is projected to bring the total number of transactions for the year close to 800,000, a slight decline from the 900,000 recorded in 2023. However, this optimistic forecast is tempered by concerns regarding the rental and new construction markets, which are anticipated to “eventually dry up.”
The data reveals a clear trend: transactions involving older buildings—both houses and apartments—are on the rise. This phenomenon can be attributed, in part, to a deceleration in inflation rates. Borrowing costs have stabilized around 3.5%, a welcome relief after surpassing the 4% mark. Furthermore, financial institutions have resumed lending practices that had been curtailed in 2023, contributing to a favorable environment for buyers. Consequently, property prices have experienced a decline, with an average drop of nearly 4% for houses and approximately 5.5% for apartments since 2022. In Paris, the price trajectory is particularly striking, with a 5% decrease in 2024 and a cumulative decline of 10% since 2022, bringing the average price per square meter down to €9,320 from €10,500 three years prior.
However, it is crucial to note that this real estate renaissance is not uniformly distributed across the country. The Provence-Alpes-Côte d’Azur region, for instance, has witnessed stable prices, although sales volumes increased by 3.5% in 2024. New Aquitaine has emerged as a frontrunner in transaction growth, boasting an impressive increase of over 14%, while Occitanie follows closely with a 10% rise. Conversely, two regions—Brittany and Pays de la Loire—have experienced declines in transaction volumes, with decreases of 12% and 5%, respectively. Notably, a reduction in transactions does not necessarily correlate with a decrease in prices; for example, Normandy has seen a slight uptick in sales volume following a significant downturn in 2023, despite homeowners enjoying a remarkable 30% increase in price per square meter over the past five years.
While the prospects for sales in 2025 appear promising, the outlook for the rental and new construction markets remains decidedly less favorable. The sector is now advocating for the establishment of a “private landlord status” to address the challenges faced in these areas. As the France’s real estate market continues to evolve, stakeholders will undoubtedly be keeping a close watch on these developments, navigating the complexities of a market that is as unpredictable as it is dynamic.
