In Q1 2025, France’s second-hand property prices rise 0.5% after a prolonged decline, with transaction numbers also increasing significantly.
The French real estate market has long been a subject of interest for both domestic and international investors. After a prolonged period of decline, the second-hand property sector is showing signs of recovery, with prices experiencing a slight uptick in early 2025.
A Year and a Half of Decline
For over a year and a half, the French second-hand property market faced a downward trajectory, with prices consistently falling. The Notaires-INSEE reference index, released on May 27, 2025, indicates that this trend has finally reversed, albeit modestly. In the first quarter of 2025, prices rose by 0.5% year-on-year, marking the end of six consecutive quarters of decline. This slight increase is significant, as it reflects a broader stabilization in the market.
Transaction Volume on the Rise
In addition to the price recovery, the number of transactions in the French second-hand property market has also seen an upward trend. As of March 2025, an estimated 880,000 sales were recorded, a notable increase from 845,000 in December 2024 and 832,000 in September 2024. This resurgence in transaction volume is particularly encouraging, as it suggests renewed confidence among buyers and sellers.
The annual volume of transactions has been on the rise since October 2024, following a decline that began in April 2022. This resurgence is indicative of a market that is beginning to stabilize and regain its footing after a challenging period.
Regional Variations in Price Trends
Prices Outside Mayotte
The recovery in second-hand housing prices is not uniform across France. Outside of Mayotte, prices increased by 1% in the first quarter of 2025, following two quarters of relative stability. Year-on-year, prices have risen by 0.5%, a welcome change from the declines of -2.1% and -3.9% recorded in the previous two quarters of 2024.
Breaking it down further, apartments saw a year-on-year price increase of 0.7%, while houses experienced a more modest rise of 0.3%. This differentiation between property types highlights the varying dynamics at play within the market.
Île-de-France: A Mixed Bag
In the Île-de-France region, which includes Paris and its surrounding suburbs, the French second-hand property market has shown signs of recovery as well. Prices for both houses and apartments rebounded by 0.9% in the first quarter of 2025, ending a streak of nine consecutive quarters of decline. However, year-on-year comparisons still reflect a decrease of -0.3%, albeit at a significantly slower pace than the previous year, which saw declines of -3.7% and -5.3% in the fourth and third quarters of 2024, respectively.
Interestingly, the price increases in Paris outpaced those in the inner and outer suburbs. In the first quarter of 2025, second-hand apartment prices in Paris rose by 1.1%, compared to 0.5% in the inner suburbs and 0.4% in the outer suburbs. This trend underscores the ongoing desirability of Paris as a prime location for property investment.
Provincial Markets
In the provinces, the trend is similarly positive. The prices of second-hand homes increased by 1% in the first quarter of 2025, following two quarters of stability. Year-on-year, the provinces recorded a price increase of 0.7% in the first quarter, a significant improvement from the -1.7% recorded in the fourth quarter of 2024. This upward momentum in provincial markets indicates a growing interest in areas outside the capital, as buyers seek more affordable options.
Factors Driving the Recovery
Several factors contribute to the recent recovery in the French second-hand property market.
Economic Stability
One of the primary drivers is the overall economic stability in France. As the economy shows signs of resilience, consumer confidence has improved, leading to increased demand for housing. This renewed confidence is crucial for a market that had been struggling for an extended period.
Low Interest Rates
Another significant factor is the continued low-interest-rate environment. With borrowing costs remaining relatively low, more buyers are entering the market, which has helped to stimulate demand. This influx of buyers is essential for driving prices upward, even if only slightly.
Changing Buyer Preferences
The pandemic has also shifted buyer preferences, with many individuals seeking larger homes or properties in less densely populated areas. This trend has led to increased demand in provincial markets, contributing to the overall price recovery.
The French second-hand property market is gradually emerging from a prolonged period of decline, with prices showing a slight increase in the first quarter of 2025. The rise in transaction volume and the stabilization of prices are encouraging signs for both buyers and sellers. While challenges remain, particularly in specific regions like Île-de-France, the overall trend suggests a market that is beginning to recover.
As the economy stabilizes and buyer confidence returns, it is likely that the French second-hand property market will continue to improve. For potential buyers, this may present an opportune moment to invest in property, while sellers may find renewed interest in their listings. The coming months will be crucial in determining whether this upward trend can be sustained, but for now, the signs are promising.
