Uncover The Hidden Gems Of The French Property Market For Next Year

Published on December 27, 2025

The French property market is on the path to a sustained recovery after a difficult couple of years, with some modest recovery observed at the start of 2025. The value of property transactions in the market increased by 11% year on year. The majority of the regions in France recorded a stable property price, although the market is still observed to be cautious, owing to the prevailing economic context. The second quarter of 2025 recorded a very slight 0.3% in the prices of previously owned apartments, while older houses still managed to maintain their prices with little capital appreciation. The overall sentiment remains cautiously optimistic, although the market is showing a slight recovery.

In 2025, one major trend was the winter season’s lack of property sales. Would-be sellers refrained from listing their winter properties because they were waiting for the economy to stabilize. This created a supply bottleneck for the market, making the buying of properties more competitive. The experts indicate that this trend will dissipate in 2026 when properties are expected to become more available in the early months of the new year.

Market Variations By Region In France

The property market in France has always been very local, and this practice continued into 2025. The main urban areas, like Paris and Lyon, had a steady market. In Paris, the prices went up by about 1.5%, and the real estate market there was active even with other negative economic conditions. In contrast, more rural areas were a little behind in response to the real estate market, with some even at a lower demand.

Nonetheless, there were developing regions that displayed positive tendencies. Brittany, for one, recorded a 25% growth in foreign interest, an indication of the area’s increasing popularity. Moreover, the property market in the French Alps recorded a 7% uplift in prices, particularly for ski properties. It is anticipated that these areas will continue to witness strong demand in 2026 as buyers, both foreign and local, seek vacation rentals or investment properties.

Luxury and Historic Properties: Zooming in on a Niche Sector

In 2025, luxury and historic properties in the Loire Valley and Provence also displayed some form of stability. Châteaux and historic home prices appreciated in the 2–4% range, which is relatively strong compared to other areas within the sector. Nevertheless, the introduction of new energy efficiency rules, which came into effect in January 2025, banning G-rated rentals, adversely affected these properties. In light of the new energy efficiency legislation, numerous property developers in these areas were compelled to either undertake renovations or lower their target prices.

Energy-efficient homes will remain a priority in 2026 as energy efficiency will continue to shape the real estate market, as it is a key property value determinant. Homes that satisfy the demand for energy efficiency will witness higher appreciation over time. Buyers and sellers will continue to prioritize homes that meet the desired energy efficiency standards.

Economic Situation: Caution

2025 in France is characterized by cautious optimism and stable conditions that provide support to the property market. One of the key conditions has been the stability of the interest rates, which has been stagnant at around 3%. This has improved the ability of buyers to 45ea mortgage, as lenders offer loans at more favorable rates, at lower levels of risk. This has improved borrowers’ ability to assess and repay the mortgage as interest rates stabilize. However, Banks remain cautious, and the mortgage approval processes remain stringent.

The impact of the new energy efficiency regulations has also been felt in interest rates. Properties failing to meet the standards will need to reduce their asking price or renovate to meet the desired levels of energy efficiency. This is reshaping the market to favor sellers of such properties, as buyers are more eco-conscious.

The Expected Future of The French Property Market In 2026

As of 2026, the French Property Market remains stable and selective, whereby buyers looking for homes and buyers looking for prime-located homes remain valued, but there will still be offers for buyers looking for energy-efficient homes. The prevailing economic atmosphere will influence interest rate determinations to be the chief determinant of future market expectations.

The ability of buyers to act quickly will be of help while competing. The limited availability of houses offers buyers opportunities, but only if there is no delay. The more stable the market becomes, the more houses are expected to be included in the market for houses available for people who can buy.

Concluding Remarks: Hopeful for 2025

2025 seems to be the year of hope for the French real estate sector as it continues on the positive path of recovery, gaining and maintaining buyers’ confidence while showing growth potential as well. Though challenges exist, such as the squeezed supply of properties, the forecast for 2026 is positive as well. There is and will be demand for energy-efficient, historical, and well-located properties. As the year comes to a close, the French real estate sector maintains anticipation as buyers must be prepared to seize the potential opportunities the new year is looking to offer.