French real estate market sees apartment prices climb in 80% of large cities, but overall sales are slowing. Discover the latest trends for buyers and sellers as negotiation margins reach record highs.
At the close of 2025, France’s real estate market presents a nuanced picture: apartment prices continue to rise in most large cities, even as overall sales and buyer demand start to flag. According to the latest LPI-IAD Barometer, the national slowdown in activity is offset by price growth, especially in the apartment market—a dynamic that is making homeownership even more challenging for many French households.
Apartment Prices: Up in 80% of Big Cities
Apartment prices are posting annual growth of 2.3%—steady since last month—with increases now observed in 80% of cities with more than 100,000 residents. The trend is even stronger in the provinces (outside Ile-de-France), where prices are up 6% on average in cities with populations over 40,000, and have surged by double digits in 16 cities such as Béziers, Caen, Laval, Metz, and Thionville. In Ile-de-France, 68% of major cities are also seeing prices rise, albeit at a slightly slower average of 3%.
Conversely, some cities such as Amiens, Le Havre, Le Mans, Lille, Nantes, Orléans, and Saint-Etienne are bucking the trend, with apartment prices remaining flat or falling. Overall, about one-third of cities in the provinces are experiencing price drops, averaging a 3.6% decline.
Houses: Growth, But More Modest
The market for second-hand houses has softened since summer, with year-on-year price increases slowing to 1.4% in November (down from 2% in June). Nevertheless, this remains notable given the shortage of properties on the market, which continues to support prices. In metropolitan areas, house price increases are rising more rapidly—over 5% in Nancy and Nice, and around 3% in Bordeaux, Brest, Grenoble, and Lille. However, a few cities, such as Montpellier, Rouen, and Strasbourg, are seeing house prices fall or stagnate.
Shift to the Outskirts
Many buyers are seeking greater value and calmer environments outside central city zones. The price discount for apartments in the outskirts compared to city centres is growing in cities like Brest, Grenoble, Marseille, Montpellier, and Rennes, as buyers prioritize living space and quality of life—when their budget allows. This trend, however, is less apparent in Bordeaux, Lyon, and Paris, where central city demand still holds strong.
New Homes: Diverging Trends
The new home market tells its own story. Eased credit conditions and longer loan terms since September have spurred first-time buyer interest in new-build homes, leading to rapid price growth of 2.8% year-on-year. But new apartment sales continue to struggle, hampered by high prices and unfavorable policies for private landlords. As a result, new apartment prices have stabilized after previous declines.
Record-High Negotiation Margins
With demand hesitating and transactions taking longer, negotiation margins between buyers and sellers have soared to historic levels. In November 2025, the average discount stood at 10%, double the long-term average. Margins are especially high for large houses (up to 12.5%) and multi-room apartments (over 10%) as only well-financed buyers or those selling a previous property can afford to negotiate effectively.
Sales Activity: A Gloomy Autumn
After a brisk rebound in sales this spring—when transactions surged 31% year-on-year—activity slowed through the autumn. November saw sales rise just 8.8% over a three-month period, compared to 13.1% at the same time last year. In the provinces, growth lagged at just 7.7%, with many regions seeing either stagnation or further declines, particularly where large personal deposits and uncertain economic conditions keep buyers cautious. Only a handful of regions (Aquitaine, Champagne-Ardenne, Franche Comté, Lorraine, and Picardy) reported growth of 20% or more, driven by acute shortages of available housing.
Looking Forward
The end of 2025 finds France’s real estate market split: prices, especially for apartments, are up almost everywhere, while buyers and sellers face prolonged negotiations and mounting uncertainty. Demand may continue to slow as credit access remains tough and policy changes impact investors and landlords, but a fundamental shortage of properties is keeping prices on the rise for now.
Whether you’re a buyer searching for value in the suburbs, a seller hoping to capitalize on high negotiation margins, or a first-time buyer frustrated by deposit demands, the months ahead promise continued tension and fierce competition in the French property market.
