Tuesday July 29, 2025
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Real Estate
By Eleanor Moore, French Property Consultant
As someone who has spent over two decades helping clients navigate the intricacies of the French property market, I’ve seen many cycles—booms, busts, and everything in between. But 2025 presents a particularly nuanced landscape. Between shifting interest rates, evolving energy regulations, and changing buyer expectations, France’s real estate market is at a fascinating crossroads. Whether you’re an international buyer, a relocating family, or a second-home dreamer, understanding today’s dynamics is key to making informed decisions.
A Market in Slow Transition
Let’s start with the basics. After years of rising prices—particularly in urban centres and tourist-driven regions—the market has entered a phase of stabilisation. National figures from Notaires de France suggest a slight year-on-year decrease in transaction volumes, especially in areas that experienced pandemic-era price inflation.
That said, France is not a monolith. While Paris has cooled (with prices down by approximately 3–4% in some arrondissements), regional hubs like Bordeaux, Montpellier, and Lyon are holding steady, with occasional upticks in suburban areas benefiting from improved transport links and lifestyle shifts post-Covid.
In rural areas, demand remains surprisingly resilient. There’s still a strong appetite—particularly among international buyers—for character properties in southwest France, Provence, and parts of Normandy. The golden rule remains: well-maintained homes in desirable locations will always attract attention.
Interest Rates: Still a Key Driver
The ECB’s recent signal of stabilising rates has brought some relief to borrowers. As of mid-2025, average mortgage rates in France hover around 3.8–4.2%, depending on the borrower profile. While that’s a far cry from the ultra-low rates of the 2010s, French lenders remain relatively conservative and consistent, which can be reassuring for foreign buyers.
If you’re purchasing with financing, it’s more important than ever to present a clean, comprehensive dossier. For non-residents, this means proving income stability, providing a strong deposit (typically 20–30%), and ideally working with a broker who understands international lending.
DPE Reforms and the Energy Factor
One of the most talked-about changes this year—and rightly so—is the 2026 reform of the DPE (Diagnostic de Performance Énergétique). The upcoming recalibration of the electricity coefficient will mean many electrically heated homes jump up a classification, especially small apartments and village houses.
For buyers and sellers alike, this has real implications. A property that would have been labelled “G” (and thus unrentable from 2025) could be reclassified as “F” or even “E” after January 1, 2026. That’s great news for landlords, but I always advise my clients not to rely solely on the label. Bills don’t lie. A house with poor insulation is still going to be expensive to heat, no matter what the certificate says.
If you’re looking to renovate, look into MaPrimeRénov’ subsidies—but do so quickly. The government has tightened eligibility criteria, and further restrictions are likely.
Buyers Are More Selective
Today’s buyer is more cautious, better informed, and—frankly—more demanding. Sustainability, broadband quality, walkability, and long-term energy costs now feature heavily in purchase decisions. That charming old stone farmhouse with single-glazed windows may still tug on the heartstrings, but if it can’t deliver on efficiency, connectivity, and comfort, it’ll sit longer on the market.
As a consultant, I encourage my sellers to anticipate this shift. Think beyond staging—invest in small, smart upgrades (like attic insulation or a heat pump) that can boost both value and buyer confidence.
The International Buyer’s Edge
Despite fluctuating exchange rates, Americans, Brits, Dutch, and increasingly Germans remain active players in the French market. France still offers exceptional lifestyle value—world-class healthcare, culture, food, and an enviable pace of life.
And let’s not forget: for non-EU buyers, owning a property can often bolster visa applications or provide a foothold for future relocation.
If you’re thinking of buying in France, my best advice remains the same: do your homework, work with a bilingual professional who understands the local notarial system, and don’t be afraid to walk away if something doesn’t feel right.
2025 isn’t a seller’s market—or a buyer’s one either. It’s a thinking person’s market.
Whether you’re looking for a pied-à-terre in Aix, a long-term rental investment in Occitanie, or your dream retirement home in the Dordogne, success lies in preparation, strategy, and clarity. The days of impulsive buying are (for now) behind us. But for those who come prepared, France still offers incredible opportunities—and an unparalleled quality of life.
If you’re considering entering the market and would like tailored guidance, feel free to reach out. Helping clients make smart, confident decisions in France is what I do best.
Eleanor Moore
www.eleanormoore.com
