The French real estate market faces a new landscape this autumn, as shifting buyer demand and tighter lending are reshaping sales activity and pricing from Paris to the provinces. Here’s what buyers, sellers, and investors need to know.
Demand Cools, Sales Slow in Many Regions
After a brisk early 2025, real estate activity across France is now slowing. The spring brought a strong rebound, with sales of second-hand homes at one point up a striking 31% year-on-year. But since the summer, the momentum has faded: November saw sales volumes increase by only 8.8% over three months, down from 13.1% in 2024.
The reasons? Hesitant demand, tougher lending rules, and persistent political and economic uncertainty. First-time buyers struggle with raised borrowing requirements, and investors are turning away amid new regulation, like rent controls and softened tax incentives.
While the Ile-de-France market remains one of the strongest (+11.4% sales since the start of summer), many regions—including Limousin, Midi-Pyrénées, and Rhône-Alpes—see sales slipping 8% year-on-year. The only exceptions are select areas (Aquitaine, Champagne-Ardenne, Lorraine, and Picardy) where particularly tight supply keeps demand and sales robust, sometimes up 20% or more.
Price Increases Slow, But Most Big Cities Still See Gains
Despite the slowdown in sales, France remains a country of rising property values—mainly due to a lack of available homes. Nationally, average property prices in November 2025 are up 1.9% year-on-year (down slightly from 2.1% in October).
- Houses: The pace of increase here is weakening; annual price growth dropped from 2% in June to 1.4% in November. Yet, because supply remains limited and sellers are holding firm, prices of newly-signed deals are up 2.5% year-on-year.
- Apartments: Urban scarcity, compounded by restrictive local policies, keeps apartment prices rising: up 2.3% on average in France for the third straight month. Notably, in cities with over 100,000 residents, 80% report rising apartment prices—6% on average in the provinces (with double-digit jumps in cities like Béziers, Caen, and Metz) and 3% in Greater Paris.
Where apartment prices are falling (about one-third of France’s sizeable towns), drops average 3.6%. Cities currently bucking the upward trend include Amiens, Nantes, Lille, and Orléans.
New Housing: A Tale of Two Segments
- New Single-Family Homes: Improved mortgage conditions (lower rates, longer terms) have fueled a mini-boom in new house sales—prices soared 2.8% year-on-year. But banks require higher deposits, locking out many first-time buyers.
- New Apartments: This market is stagnant. High prices, lack of suitable locations, and wary investors (concerned about regulation) leave new apartment sales sluggish. After two years of declines, prices are now stable but not climbing.
The Rise of Negotiation: Margins Hit Record Levels
Challenging credit, economic fears, and longer selling times have made tough negotiations the norm in 2025. The average “negotiation margin”—the difference between asking and final price—stood at 10% in November (up from a 5% long-term average).
- Houses: Margins are highest—10.9%—especially for large homes with 7+ rooms (12.5%).
- Apartments: Margins are lower for small units (under 8.5% for 3 rooms or less) but rise above 10% for larger ones.
This trend reflects both buyer caution and sellers’ unwillingness to budge, especially in a climate of few available properties.
Exodus to the Outskirts?
In most major cities, buyers are showing a growing preference for apartments outside the city center, driven by a demand for calmer, more affordable living environments. Price gaps between centers and outer districts are growing notably in Brest, Grenoble, Marseille, and beyond, though not yet in super-charged markets like Paris or Lyon.
Looking Ahead: Mixed Prospects for 2026
End-of-year market mood is subdued. While overall demand stutters and buyers hesitate, the scarcity of quality properties—especially for houses—means prices are unlikely to drop sharply in most regions. However, unless there is a shift in lending criteria, investor confidence, or new supply, the market is expected to remain tight with modest price growth, high negotiation, and uneven activity into the new year.
Key Takeaways for Buyers and Sellers in France:
- Expect slower price growth nationally, but continued rises in most major cities.
- Prepare for more negotiation—especially for larger homes or apartments.
- Buyers in the provinces may find better deals as some territories experience falling or flat prices.
- First-time buyers face an uphill battle due to high deposit requirements and still-tight credit.
Whether you’re looking to buy your next home in Lyon or sell your apartment in Paris, staying informed remains key in navigating France’s evolving real estate landscape.
