After two years of slowdown, the Paris real estate market is finally showing early signs of recovery in 2025. According to the latest PAP Observatory report, the number of buyers in the capital has increased by 3.2% year-on-year, a modest uptick compared to the national surge of 11.3%. Despite a 10% drop in prices since 2022, Paris remains a highly selective and segmented market, with only some neighborhoods managing to attract buyers.
Where Are Paris Buyers Looking?
Historic Center is in High Demand
The 2nd, 3rd, and 4th arrondissements—Paris’s historic heart—are leading the recovery, with buyer interest rising by up to 12.8%. Prices here remain well above average, with the 3rd at €12,590/m² and the 4th at €12,740/m². These neighborhoods are coveted for their charm, central location, and a limited supply of available properties, making them a perceived safe bet for investment.
Residential Southern Districts Are Family Favorites
The 13th and 15th arrondissements have also seen rising interest (+7.1% and +8.3%, respectively) due to their relatively lower prices (around €8,600–8,800/m²), spacious housing, quality schools, and convenient transport. First-time buyers and families are particularly drawn to these areas.
Outer Arrondissements Show Gradual Improvement
The 20th, 9th, and 18th arrondissements have experienced moderate gains. The 20th offers the lowest prices among them at €7,980/m², while the 9th and 18th maintain strong appeal as affordable, evolving neighborhoods benefitting from urban development.
Arrondissements Losing Attractiveness
Prestigious and Intermediate Districts See Buyer Drop-Off
Iconic neighborhoods like the 6th and 7th have witnessed a sharp decline in buyers (-7.2% and -8.1%). High prices—over €12,700/m²—limit access even for wealthy buyers, making the market more selective.
The 17th arrondissement stands out with the steepest drop: a staggering -23.6% fewer buyers in 2025. Contributors include changing perceptions, supply mismatches, and rising competition from more dynamic and affordable areas.
Edge Arrondissements Face Suburban Competition
Despite affordable prices, the 19th sees a 9.1% decline in buyers, partly due to competition from nearby metro-served suburbs that offer even lower prices and modern amenities.
Why Are Paris Prices Still So High?
Though prices have fallen 10% since 2022, they remain the highest in France—median €9,611/m² in 2025. Buying a 100m² family home now demands over €1 million (including notary fees). To purchase such a property with a standard 20-year loan at current 3.2% rates, a couple must earn over €17,750 monthly—keeping Parisian property firmly out of reach for most households.
What Comes Next?
A Cautious but Stable Market
While some arrondissements are stabilizing or even seeing modest price increases—most notably the 8th (+13.5%) and 3rd (+7.9%)—others are still correcting, with the 1st arrondissement posting a significant -12.5% decline.
2026 Outlook: A Gradual Return of Buyers
Most experts agree the subdued activity isn’t due to waning interest in Paris, but rather high entry costs and strict loan conditions. With mortgage rates stabilizing and pent-up demand growing, a stronger recovery could arrive as early as 2026. PAP Observatory predicts a 2–3% price increase in the coming year as conditions ease.
Bottom Line: Paris remains a life goal for many buyers, sustained by its rich culture, top jobs, and world-class amenities. While 2025’s recovery is tentative and unequal, the City of Light’s real estate market appears ready for a gradual rebound—especially if financing becomes more accessible.
If you’re eyeing Paris real estate, watch these trending neighborhoods and keep an eye on the evolving lending environment for buying opportunities in 2026 and beyond.
For more Paris property news and insights, stay tuned.
