Discover how stabilizing interest rates and property prices in 2025 are helping French homebuyers gain 3 m² more purchasing power for €1,000/month. Learn what this means for France’s real estate trends and outlook for 2026.
France’s Real Estate Trends: French Homebuyers Recover 3 m² in Purchasing Power in 2025
After several challenging years in the housing market, new data brings a glimmer of hope for aspiring homeowners across France. According to a recent Meilleurtaux study, the average property a French household can buy with a €1,000 monthly payment (over 20 years) has grown by 3 m² in the past year. This means French buyers can now afford approximately 60 m² in the country’s biggest cities—a significant increase after years of shrinking purchasing power.
A Market Regaining Its Footing
The end of 2023 marked a low point for real estate in France, defined by rapid increases in mortgage rates and sustained high property prices. These factors limited access to homeownership for many families. However, 2024 and 2025 have seen a gentle reverse in this trend as mortgage rates dropped and property values stabilized in most major markets.
The average 20-year mortgage rate has eased by 15 basis points, now sitting around 3.22%. Meanwhile, the pace of property sales has cooled, causing prices per square meter to level out. Combined, these changes are helping buyers stretch their euros further—though the improvement is fragile and could turn quickly due to political uncertainties and fluctuations in French public debt.
Recouping Lost Ground, Cautiously
This uptick in purchasing power is welcome news, but it comes after years of struggle. Over the past five years, the average size of homes affordable to French buyers dropped by 12 m²—more than 20 m² in certain medium-sized cities like Le Mans, Nîmes, Toulon, and Angers. For many, the modest gains in 2024 and 2025 are a much-needed relief, but they don’t fully counteract the losses from previous boom-bust market cycles.
What’s Holding Back Greater Gains?
One of the factors putting a cap on further improvements is the tension in financial markets, particularly the ongoing rise in the 10-year OAT (Obligation Assimilable du Trésor) rate, which serves as a “cost of money” benchmark for banks. Political uncertainty and concerns about France’s debt mean that banks are cautious, and further decreases in borrowing rates may be limited for now.
Nevertheless, French banks are still eager to issue home loans. Many are rolling out competitive offers to attract new customers, and this competition helps keep rates in check, giving an extra edge to homebuyers—every tenth of a percent still makes a difference in what families can afford.
Outlook for 2026: Act with Optimism, but Stay Vigilant
As France heads into 2026, real estate experts advise would-be buyers to seize the opportunity created by stable rates and prices. However, caution is also warranted. The broader economic and political climate could shift quickly, impacting both property prices and borrowing costs.
Key Takeaways:
- In 2025, French buyers gained back 3 m² of purchasing power, now affording about 60 m² for €1,000/month over 20 years in major cities.
- Mortgage rates have inched down to 3.22%, and property price drops have stabilized, restoring some confidence.
- The long-term trend is still negative, with an average 12 m² lost over the last five years.
- Market volatility and political uncertainty remain, so buyers should act strategically and stay informed.
If you’re considering a real estate purchase in France, 2025 presents a cautiously positive landscape—an opportunity to regain ground, but one where vigilance remains key.
