The French real estate market is showing signs of recovery as we move into 2026, but experts caution that the rebound remains fragile, with notable differences emerging between regions and cities. According to the latest INSEE-Notaires indices, the drop in transactions seen over the last two years is reversing, with projections pointing toward around 945,000 sales for 2025. House prices are stabilizing, increasing slightly by 0.2% year-on-year, while apartment prices are rising by 1.3% nationally.
Multi-Speed Real Estate Markets: A New Reality
France’s real estate scene has become a patchwork of multi-speed markets. Paris stands out as the priciest city, with apartments averaging €9,600 per square meter. Following the capital, Nice, Bordeaux, and Lyon offer apartments near €4,000/m², while cities like Lille, Rennes, Nantes, Strasbourg, Montpellier, Toulouse, and Marseille hover around €3,000/m². Even more affordable are Toulon, Dijon, Reims, Orléans, Grenoble, and Le Havre, where prices are around €2,000/m². These median figures mask neighborhood-level disparities, but they offer a snapshot of France’s housing landscape.
Purchasing Power: What Can You Afford in 2026?
With mortgage rates stabilizing near 3%, many French households have returned to the real estate market. Despite this, purchasing power varies greatly by location. For example, with a €800/month mortgage payment over 20 years, you could buy a 42m² two-room apartment in Toulouse, a 61m² three-room apartment in Le Havre, or just a 12m² studio in Paris.
Homeownership remains stable, with 57% of households owning their home, and over a third have paid off their mortgages. The average French homeowner has kept their property for around 12 years.
Notably, energy performance labels are increasingly affecting old property prices: homes with a poor DPE rating (F or G) are often sold at a discount, as buyers are wary of future renovation costs.
2026 Outlook: Fragile Confidence in Uncertain Times
Looking ahead, both home prices and borrowing rates are expected to climb slightly in 2026, but several factors could influence the market’s direction. Experts highlight the importance of monitoring inflation, ECB decisions, credit conditions, and overall economic and geopolitical stability. Banking policies and buyers’ confidence remain crucial: with lasting uncertainty, trust in the market will be key for anyone considering a real estate project.
In summary, France’s real estate market in 2026 is defined by more regional disparities than ever before, modest price increases, and a buying public coping with new financial and environmental considerations. If you’re weighing a property purchase, now more than ever, informed decisions and local market knowledge will be essential.
