Discover how France’s real estate market is booming in 2025, with property sales up 31% in just three months. Second-hand home prices soar by 2.5%, reaching January 2023 levels, driven by high demand in Paris and major cities. Get the latest market analysis and trends.
The French real estate market is experiencing a strong revival in 2025, with sales of second-hand homes up 31% over the last three months, fueling a sharp rise in property prices across the country. Despite challenges in the mortgage market and tighter requirements on personal contributions, buyer activity is surging in most regions, marking a remarkable market recovery after years of stagnation.
Second-hand Home Prices Back to 2023 Levels
The rebound in sales is matched by a notable increase in the prices of older properties. Across France, prices for existing (non-new) apartments and houses jumped 2.5% over the past three months, bringing them back to levels seen in January 2023. The trend covers 75% of French cities with over 100,000 inhabitants, and has notably spread to 50% of cities in the Paris region. Even Paris, after three years of price decline, has seen a slight price uptick (+0.1% year-on-year).
What’s Driving the Price Increase?
Several factors underpin this sharp recovery:
- Reseller Activity: The market is being energized by homeowners capitalizing on gains from previous sales to secure new purchases, particularly in large cities.
- Low Supply: A shortage of available second-hand homes is putting upward pressure on prices in most metropolitan areas.
- Periphery Preference: Buyers are increasingly looking to suburban and peripheral areas for better value and lifestyle, except in core cities like Paris, Nice, and Lyon where central prices remain competitive.
- Strong Demand for Houses: Annual house prices have increased by 1.7% compared to 1.2% for apartments, highlighting families’ enduring appetite for more space.
Regional Highlights
- Champagne-Ardenne, PACA, and Picardy: These three regions saw activity soar by 45% on average over the past three months, thanks to affordable prices and high demand in hot markets like PACA.
- Île-de-France (Paris Region): Sales rose nearly 30%, boosted by buyers with strong personal contributions and proceeds from resale.
- Other Regions: Areas like Alsace, Auvergne, Midi-Pyrénées, Pays de la Loire, and Rhône-Alpes display slower growth (up 15%), mainly hampered by high prices and economic factors.
Market Pressure and Negotiation Margins
Due to intense demand and limited supply, negotiation margins (the difference between asking price and final sale price) are widening:
- Marketwide Margins: Averaged 9.3% in July 2025 (+47% year-on-year), reaching 10.3% for houses and 8.1% for apartments.
- High Margins for Certain Properties: Inexpensive regions offer the highest margins, while high-price regions like Paris, PACA, and Rhône-Alpes see tighter negotiations due to limited supply.
Contrasts with New-Build Homes
While the second-hand market is booming, new-home sales are more subdued. Mortgage rates have stabilized, but increased deposit requirements and the end of tax incentives (e.g., Pinel scheme) have made new apartments less attractive, especially for first-time buyers and investors. New house sales are up, but price growth is leveling off (+1.1% over three months).
Outlook: Growth Slows Amid Economic Uncertainty
Despite the bumper sales so far in 2025, there are emerging clouds on the horizon:
- Economic Environment: Rising unemployment, slowing economic growth, and ongoing purchasing power losses could start to weigh on demand.
- Loan Market: The growth in mortgage approvals and real estate loan requests is beginning to slow, signaling a potential “landing” for the surging market.
The French real estate market is in the midst of a robust recovery, driven mainly by strong demand for second-hand homes and persistent supply shortages. Prices have bounced back to 2023 levels, especially in larger cities and the Paris region. As summer 2025 continues, buyers and sellers alike should be aware of region-specific dynamics and the tightening credit environment, which could shape the real estate landscape in the months ahead.
Looking to buy or sell in France? Stay tuned for more updates on French real estate trends and market insights.
