After two years of turbulence, France’s real estate market is officially bouncing back—albeit with some important caveats. The third quarter of 2025 saw significant growth and a marked return of first-time buyers, supported by stable interest rates and improved lending conditions. However, the recovery is playing out unevenly across the country, with some regions posting double-digit gains while others are still catching their breath.
Key Figures:
- The real estate market saw sales volume rise 11% by September and a 14% jump since the beginning of the year.
- Average property prices are up 3% year-on-year, showing slow but steady appreciation.
- The surge is mainly led by first-time buyers, who have found a renewed window of opportunity due to friendlier banks and stabilized loan rates.
- Regional growth is highly varied: Marseille (+15%) and Toulouse (+13%) are leading the recovery, Lyon is up 5%, and Nice—after a sharp drop in 2024—is limiting its fall to -3%. Paris remains stable with a minor decrease of -2%.
First-Time Buyers Signal Market Health
The renewed activity among first-time buyers is particularly noteworthy. As a bellwether group, their return typically signals increased market confidence and broadens the base for future growth. This trend has been highlighted by industry cooperative Orpi, which regards first-time buyers as a key engine for sector momentum.
A Recovery of Contrasts
France’s property rebound is not a one-size-fits-all story. Southern cities are thriving: Marseille and Toulouse, in particular, stand out with robust gains. Even cities that struggled in 2024, such as Nice, are showing signs of stabilization and modest recovery. In contrast, Paris, traditionally a real estate powerhouse, has seen sales stabilize amid a minor dip and a cooling of the high-end market—partially tied to political uncertainty and newer regulations.
Rental Investment Falters Amid Political and Regulatory Instability
Investor caution is the flip side of the recovery story. Rental investment, once a stalwart of the French market, has slowed as political shake-ups (government changes, regulatory shifts) and fiscal unpredictability prompt many landlords to wait and see. In Paris, where investors make up a significant slice of buyers, compromise agreements have dropped by 2%. This hesitation only tightens already strained rental supply, a concern exacerbated by prices in the capital finally dipping below €10,000/m2.
Despite these headwinds, private landlords remain central: according to INSEE, they now house over half of all tenants, highlighting their indispensable role in the rental ecosystem.
The Safe Haven Appeal of French Real Estate
Even against a backdrop of uncertainty, French real estate maintains its reputation as a safe investment. Recent opinion polling by Orpi and OpinionWay reveals over a quarter of respondents still plan to buy property in the coming months—a testament to the market’s enduring appeal.
France’s property market is on a stronger footing in 2025 thanks mainly to first-time buyers and stabilizing conditions. While challenges persist, especially for rental investors and in certain regions, overall sentiment is improving, with stakeholders keeping a close eye on government actions in the months ahead.
