Monday November 3, 2025
esnews-admin
Real Estate After two choppy years, France is edging out of a price correction. The national picture is mixed, but 2025 has brought the first signs of stabilization, tiny rebounds in some segments, after a long slide through 2023–24. In short: the panic is over, but the market is still negotiable.
Financing has become friendlier, for the time being, which matters more than any headline index. Average new mortgage rates have eased back toward the low 3s in 2025, and banks are competing again—great news if you were priced out last year. For context, Banque de France reported 3.32% in January; by Q3 the sector average hovered around ~3.1%. That shift alone can restore tens of thousands of euros of borrowing power on a typical family budget.
Policy also tilts the table. The Prêt à Taux Zéro (PTZ)—the state-backed, zero-interest top-up for eligible buyers—has been extended through 31 December 2027, which can meaningfully reduce monthly outlay for first-time purchasers in qualifying areas. If you meet the income and property criteria, it’s worth running the numbers before you compromise on location or size.
For investors, energy rules are reshaping pricing. Since 1 January 2025, homes rated G on the DPE cannot be newly rented (or have tenancies extended), with F-rated homes following in 2028. Result: a clear two-speed market. If you’re renovation-minded, you’ll often find bigger discounts on energy-hungry stock—provided you budget properly for upgrades to lift the rating. Done well, that creates yield and future-proofs the asset.
New-build dynamics are changing too. The Pinel tax break for buy-to-let ended on 31 December 2024, removing a driver of investor demand in some schemes. That doesn’t kill the case for new build—especially where energy performance and running costs shine—but it does mean you should underwrite projects on fundamentals, not fiscal sweeteners.
So—is this a window? For many, yes. Owner-occupiers can use today’s calmer conditions to buy the right home rather than the only home, locking a rate before the next cycle turns. Cash and strong-dossier buyers have leverage: clean offers, realistic timelines, and proof of funds still win deals at fair (sometimes improved) prices. Investors should think like operators: target micro-locations with durable rental demand, stress-test yields at conservative rates, and treat DPE works as capex that protects value rather than a nuisance to dodge.
My playbook with clients is simple: get pre-approved, focus on streets not postcodes, and price in energy upgrades with quotes—not guesses. If you want a second pair of eyes on a shortlist—or a renovation plan to unlock a “G to D” jump—send me the brief and I’ll map the options. The dip hasn’t slammed shut; for prepared buyers, it’s still a very workable opening.
