French Property Market: Old Homes Lead the Charge in 2025 – What’s Next?
The French property market is showing signs of recovery, but it’s a nuanced picture. Recent data indicates that existing homes are currently the driving force, with sales up 11% year-on-year, reaching an estimated 921,000 transactions by the end of September 2025. This resurgence isn’t uniform, however, and understanding the trends within different property types is crucial for both buyers and sellers.
Existing Homes: The Sweet Spot
Prices for existing apartments have seen a modest increase of 1.3% in the third quarter of 2025, while existing houses edged up by 0.2%. Projections suggest this upward trend will continue into early 2026, with apartments potentially rising by 2% across both the Île-de-France region (Paris and surrounding areas) and the rest of the country. Houses are expected to see a 1% increase nationally, but a more significant 2.1% jump in Île-de-France.
This preference for existing properties is likely due to a combination of factors. Many buyers appreciate the character and established neighborhoods that older homes offer. Furthermore, the immediate availability of existing homes contrasts with the longer timelines associated with new builds.
New Builds: A Slow Recovery
The new-build apartment market is experiencing a slight rebound, starting in the second quarter of 2025. Sales are up a moderate 2% over the past 12 months. However, this remains 35% lower than sales figures from two years ago. Developers are facing challenges with rising construction costs and supply chain issues, impacting both pricing and delivery times.
Pro Tip: If considering a new build, thoroughly research the developer’s track record and financial stability. Delays and incomplete projects are unfortunately common in the current climate.
Land Sales: A Continuing Decline
The market for building land continues to contract. Transactions have fallen by a third in a year, from 70,000 in the third quarter of 2023 to 45,000 in the same period of 2024. While the rate of decline is slowing – down 18% in the second quarter of 2025 and 10% in the third – the trend remains firmly downward. This scarcity of land is contributing to the higher prices of existing homes.
This decline is linked to stricter land-use regulations and a growing emphasis on preserving green spaces. It also reflects the increased cost of land, making self-build projects less viable for many.
Energy Efficiency: A Growing Priority
A significant shift is occurring in buyer preferences regarding energy efficiency. The proportion of highly energy-inefficient homes (those with poor energy performance certificates – DPE) being sold has stopped increasing and even decreased by 2% since 2024. Currently, these properties represent 15% of sales in the second quarter of 2025 – 10% of houses and 17% of apartments.
Conversely, the number of older apartments with a C or D energy rating is rising, reaching 28% of sales in the second quarter of 2025 (up from 24% in 2024). This indicates that government incentives for energy renovations are having a positive impact, encouraging homeowners to improve the energy performance of their properties.
Did you know? France is actively phasing out the most energy-inefficient properties, making energy performance a critical factor in property value.
The Notaries’ Perspective
According to Maître Priscille Caignault, a leading notary and real estate expert, “After two years of significant decline, the property market began to recover in the final quarter of 2024, a trend that continued throughout 2025. However, our optimism remains cautious, given the political, economic, and geopolitical uncertainties that continue to weigh on the market. French people have a strong affinity for property ownership, but they require a stable economic and political environment to feel confident.”
What Does This Mean for Buyers and Sellers?
For sellers, now may be a good time to list an existing property, particularly in areas with high demand. Focus on highlighting the property’s energy efficiency and any recent renovations. For buyers, be prepared for competition, especially for well-maintained existing homes. Consider prioritizing properties with good energy performance to avoid future renovation costs.
FAQ
- Is now a good time to buy property in France? It depends on your individual circumstances and risk tolerance. The market is recovering, but uncertainties remain.
- What is a DPE? A DPE (Diagnostic de Performance Énergétique) is an energy performance certificate that rates a property’s energy efficiency.
- Are new builds a good investment? New builds can be attractive, but consider the potential for delays and the current price premium.
- What is driving the increase in existing home prices? Limited supply, coupled with continued demand, is the primary driver.
Want to learn more about navigating the French property market? Explore our guide to property taxes in France or read our article on securing a French mortgage.
Share your thoughts! What are your biggest concerns about the French property market? Leave a comment below.
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