The French real estate market is surprising experts in July 2025, as property prices in the old market climb by 2.7% over three months, according to the LPI-iad Barometer. Learn what’s behind this unexpected growth and what it means for buyers and sellers nationwide.
France Real Estate Prices July 2025: Market Defies Seasonality with Strong Growth
The French real estate market is turning heads in July 2025. Unlike the typical summer lull, property prices are showing sustained growth, catching both buyers and sellers by surprise. According to the LPI-iad Barometer, prices in the old property market have increased by +2.7% over the past three months. This rise is not just limited to Paris—it stretches across 73% of French cities with more than 100,000 inhabitants, signaling a nationwide upward trend.
Key Takeaways for July 2025
- Old property market prices: +2.7% over three months
- Cities with 100,000+ residents seeing increases: 73%
- Paris average signed price: €10,538/m²; average listed price: €11,158/m²
- Old houses: +2.6% in three months
- New apartments: -1.0% over one year
- Average negotiation margin: 9.0%
Robust Growth in the Old Property Market
The renewed dynamism in France’s old property segment is particularly striking. The national average price now stands at €3,346/m² (+2.7% over three months), a marked change from the same period last year when prices fell by -4.3%.
Old apartments saw a +2.9% increase over the quarter, with old houses up by +2.5%. Displayed prices climbed as high as +3.9%—a sign of mounting market confidence and activity.
The Return of Reseller Investors
A notable factor behind this surge is the comeback of existing homeowners entering the market for higher-value properties. With more confidence in property values, upmarket resellers are stepping back in. In June 2025, 61% of cities with more than 40,000 inhabitants saw property price increases, averaging +6.0% over one year. This sharply contrasts with June 2024, which saw a -7.5% average decline in 80% of these cities.
Paris: Symbolic Thresholds and Intracity Variations
Paris remains at the center of attention. Despite a slight annual decrease (-0.5%), prices in the capital ticked up +1.3% over the last quarter, reaching an average signed price of €10,538/m² and breaking above €11,000/m² for displayed prices.
However, not all Paris arrondissements move in lockstep:
- 1st arrondissement: €9,482/m² (-4.2% over three months)
- 6th arrondissement (most expensive): €14,581/m² (-4.3%)
- 4th arrondissement: €13,351/m² (+8.1% over three months)
Some sectors are surging, while others stabilize or correct.
Major Regional Cities Ride the Wave
Metropolitan areas outside Paris also show a strong upswing:
- Lyon: +5.2% in three months (€4,821/m²)
- Marseille: +4.3% (€3,436/m²)
- Lille: +2.3% (€3,807/m²)
Lesser growth or declines feature in places like Strasbourg (-3.7% year-on-year) and Bordeaux (-1.1% year-on-year), but the broader trend points up. Supply constraints and increased buyer competition are driving price rises, especially in France’s largest cities.
New Build Market: Mixed Signals
While old homes soar, the new property market is more nuanced. The average price for all new homes rose to €4,638/m² (+1.5% over three months). Single-family homes saw a robust +2.6% jump, but new apartments dropped -1.0% year-on-year (though +0.8% over three months), reflecting varied demand across buyer profiles.
Recent government initiatives, such as the expansion of the PTZ (zero-interest loan) scheme, provide support for first-time buyers, but strict credit conditions persist. The end of the Pinel scheme further dampens investor appetite, resulting in two distinct buyer pools—new homeowners and investors.
Negotiation Margins Widen Despite Rising Prices
Despite upward price pressure, average negotiation margins have expanded significantly, reaching 9.0% in June 2025 (+39% YoY).
- Houses: 10.2% (+46%)
- Apartments: 7.5% (+29%)
- Large houses (6+ rooms): 10.9%
This paradox shows a market where many buyers are able to negotiate, especially on higher-end or unique properties stymied by tighter lending criteria.
Regional Disparities Highlight Fragmented Market
Margins vary dramatically:
- Île-de-France: 9.0% for houses, 6.9% for apartments
- Rhône-Alpes: 7.7% for houses, 5.9% for apartments
- Burgundy: 12.1% for houses, 9.2% for apartments
- Limousin: 11.1% for houses
- Lorraine: 10.7% for houses
In highly sought-after areas, seller discounts are minimal due to supply shortages, while more affordable regions see wider negotiations due to excess supply and fewer qualified buyers.
Is July 2025 the New Normal for French Real Estate Prices?
The French real estate market in July 2025 is characterized by rising prices, renewed activity among upmarket sellers, widening negotiation margins, and sharp regional variations. While it’s too soon to declare this upward trend a “new normal,” the resilience shown by France’s old property market, even in the face of stringent borrowing requirements, is noteworthy.
Stay tuned for further updates on France real estate prices and market trends as we monitor whether this summer surge marks a longer-term shift or a post-pandemic rebound.
