According to the National Federation of Real Estate (FNAIM), sales of existing homes increased by 2.5 per cent year-on-year at the end of April 2025, with 892,000 notarised deeds recorded.
While still below the 1.2 million sales peak of 2021, FNAIM now forecasts an 11 per cent rebound by year-end, with 940,000 transactions expected in December.
This renewed activity coincides with falling interest rates, with the average mortgage rate dropping to 3.13 per cent in April 2025, down one point over a year and a half.
Mortgage lending has seen a significant uptick, with €12.6 billion in housing loans granted in April 2025, compared to just €7 billion in January 2024.
“The market is regaining colour,” Loïc Cantin President of FNAIM said.
The recovery is being driven primarily by second-time buyers, who account for 50 per cent of transactions, followed by first-time buyers (33 per cent) and investors (17 per cent). Overall demand has increased by 15 per cent year-on-year.
Despite the positive transaction volume, property prices remain relatively stable.
Year-on-year, prices for older properties show a moderate decrease of 0.6 per cent, compared to a 3.2 per cent decline in 2024.
“The rate of increase in property prices matches that of inflation,” Mr Cantin said.
However, the market recovery is not uniform across France.
Cities like Nantes, Lyon, and Bordeaux have seen significant value drops over three years, with declines of 13 per cent, 12 per cent, and 8 per cent respectively.
The market is also experiencing a shift in negotiation dynamics.
The share of properties sold after negotiation dropped from 91 per cent to 86 per cent in one year and could fall to 75 per cent by the end of this year, indicating sellers are becoming more demanding as buyers return to the market.
A new trend is quietly emerging with some investors, particularly international ones, using cryptocurrencies like Bitcoin for real estate transactions.
Although still marginal in France, this approach is gaining traction in regions with high tourist appeal or favourable tax systems.
Several factors could impact the sustainability of this recovery, including the partial suspension of the MaPrimeRénov’ renovation scheme, ongoing geopolitical tensions, and the political environment in France.
The supply-demand balance remains delicate, with professionals warning that while buyers are returning, the limited housing stock could create new market tensions if not addressed.
“If the current trajectory is confirmed, the market may move toward a new balance, but it is too early to declare victory,” Mr Cantin said.
