According to figures compiled by the state statistics agency Insee in partnership with the notaires trade body, property transactions have also risen, reaching 906,000 for the 12-month period ending in June.
Notaires in the Paris region suggest the official figures may be understating the actual market growth, noting that their experience indicates price increases closer to 2 per cent, according to Connexion.
These official figures – which include completions of sales agreed at the end of 2024 – trail behind the price increases they have experienced, which are nearer 2 per cent.
The statistics show that house prices in provincial France, which excludes Paris and its suburbs, Auvergne-Rhône-Alpes, Nord de France, and Provence-Alpes-Côte d’Azur, rose by 0.4 per cent in the second quarter compared to the previous year.
However, the Insee-Notaires index primarily focuses on large towns and cities, with rural properties receiving less specific attention in the data.
The statistics do not distinguish between urban and rural prices within the provincial classification.
Data from Safer, an official agency responsible for monitoring rural land sales, presents a different picture for rural properties.
Their latest figures revealed that prices for rural houses actually fell by 3.4 per cent in 2024 compared to 2023, with the average price settling at €195,000.
This contrast between urban and rural markets highlights the uneven nature of France’s property recovery, with city properties appearing to lead the rebound while rural areas continue to experience price adjustments.
Market observers are also closely monitoring interest rates following the European Central Bank’s decision to pause its rate-cutting cycle.
This development, coupled with rising prices for French sovereign bonds as investors respond to political uncertainty, could impact mortgage availability and affordability in the coming months.
