The French real estate market, which has struggled for the past two years, is beginning to show clear signs of recovery due to falling interest rates and price stabilization.
Buyer Confidence Returns: Sales Are Rising Again
According to the National Federation of Real Estate (FNAIM), sales of housing increased by 2.5% year-on-year by April 2025, totaling 892,000 transactions. This increase is linked to improved financing conditions. The average mortgage rate in April 2025 was 3.13%, down one percentage point compared to the previous year. Amidst this, €12.6 billion in housing loans were issued in April 2025, indicating a return of buyer confidence.
A Still Fragile and Segmented Market
Despite the increase in transaction volumes, property prices have not shown sharp changes. Prices for older properties have decreased by 0.6% year-on-year. However, there are significant local differences: prices in Nantes have fallen by 13%, and in Lyon by 12%. Professionals note that while demand has increased by 15%, the market remains segmented, and sellers are becoming more demanding, leading to a decrease in the share of properties sold after negotiation to 86%.
Uncertainties and Emerging Trends
Some investors are beginning to consider cryptocurrencies like Bitcoin as a means of purchasing real estate, although this practice is gradually integrating. The partial suspension of the MaPrimeRénov’ scheme raises concerns about the renovation of older housing, and geopolitical tensions could quickly impact current trends. If the current situation continues, the market may move toward a new balance, but it is too early to make definitive conclusions.
The French real estate market, despite signs of recovery, remains in a state of uncertainty. It is crucial to closely monitor changes in the economic environment and their potential impact on the sector.
