Explore the latest trends in France’s real estate market for August 2025. Property prices have surged 2.5% in just three months, reaching January 2023 levels. Learn about the sharp sales recovery and rising negotiation margins reported by the LPI-iad Barometer.
France Real Estate Trends 2025: Prices Climb and Sales Surge Across the Country
After a turbulent couple of years, the French real estate market is officially back on the upswing. According to the LPI-iad Barometer (August 2025), property prices have surged 2.5% over the past three months, returning to their January 2023 levels and marking a robust recovery in both sales volume and values.
Key Highlights from the LPI-iad Barometer:
- Property prices rose by 2.5% in three months through July, up 1.4% year-on-year.
This climb reverses a 3.7% annual decrease just a year ago. - 75% of cities with over 100,000 residents reported price increases—a massive jump from just 10% a year prior.
- Second-hand home purchases by individuals skyrocketed: up 19.1% over 7 months, and 14.2% year-on-year.
- Houses remain in higher demand than apartments: house prices climbed 1.7% in a year, compared to 1.2% for apartments.
Second-hand Property Market Powers Ahead
Much of the price growth is driven by the robust second-hand (old) property market. The return of property owners reselling and buying up, particularly in larger cities, has fueled demand—counterbalancing persistent hurdles like the Banque de France’s strict mortgage requirements for first-time buyers.
Notably, the growth is now widespread:
- 75% of large cities registering price rises (compared to only 10% last summer). Last year, nine out of ten big cities saw falling prices; this year, those same locations average a 2.8% price increase.
- Announced sales prices for second-hand homes have risen 3% in just three months, with houses (+3.5%) outpacing apartments (+2.7%).
New Builds: Mixed Fortunes
Buyers of new homes continue to benefit from extended zero-rate loans (PTZ), but mortgage conditions remain tight, and banks now require higher personal contributions.
- House sales are growing thanks to a wider builder supply, but price increases are slowing: just 1.1% over the last three months and 0.2% over the year.
- New apartment sales still struggle, weighed down by high prices and limited investor incentives following the end of the Pinel scheme. Over one year, new apartment prices are actually down 0.8%.
Regional Differences and the Power of Periphery
While metropolitan hotspots like Paris and the Ile-de-France region are seeing apartment prices rebound—up 2.8% year-on-year in big cities, and 1.1% in the Paris area—growth isn’t universal. Cities like Amiens, Saint-Etienne, Nantes, and Rennes face ongoing price stagnation or decline, often due to weaker local economies or shrinking demand.
A clear trend is emerging:
- Urban buyers increasingly prefer the suburbs or peripheral towns, where quality of life may be better, and property is more affordable.
- In big cities such as Grenoble, Marseille, and Strasbourg, the price advantage is shifting away from the city centre to the suburbs.
Growing Negotiation Margins
Despite the overall surge, negotiation margins (the difference between asking and selling price) have also increased, indicating buyers still have some leverage, especially in lower-demand regions:
- Average margin was 9.3% overall in July 2025—10.3% for houses, 8.1% for apartments.
- Margins are highest in less expensive regions (Burgundy, Limousin, Picardy), where buyer affordability remains strained.
In contrast, regions like Ile-de-France and PACA have the lowest negotiation margins, reflecting a shortage of available homes and sellers holding out for higher prices.
Surge in Sales Across the Country
With sales up 31% over three months nationwide, nearly all regions of France are experiencing a boost in activity. The sharpest increases are found in Champagne-Ardenne, PACA, and Picardy, with affordable prices or rising demand in supply-limited markets fueling growth.
In the premium areas of Ile-de-France, sales have jumped nearly 30%, powered by affluent buyers with high personal contributions who are less impacted by loan constraints.
Outlook: Price Growth and Market Hesitation
- The overall recovery in France’s property market, powered largely by the second-hand homes segment, looks set to continue—though the pace is moderating.
- Price gains are now the norm in most cities, with 2025 marking the return to pre-slump levels for property values.
- However, rising prices and stricter lending are starting to strain overall affordability and could slow growth as borrowing becomes more difficult and economic conditions remain challenging.
France’s real estate market in 2025 is in a period of strong recovery, with prices and sales rebounding across most regions and sectors. The demand for second-hand homes is helping drive much of the activity, while new builds experience more mixed dynamics. With affordability now under pressure, all eyes will be on whether the current upward trend can hold in the face of economic headwinds later this year.
