Actualité - The Real Estate Market in France

In August 2025, the French real estate market confirms a moderate yet tangible recovery, driven by a notable increase in transactions since the beginning of the year. Despite stable national prices, significant regional disparities remain. In this context, both sellers and buyers have a strategic window to seize in order to carry out a real estate project under optimal conditions. Contact your Optimhome real estate advisor for support with your purchase or sale.

Trends in the French Market: Real Estate Volumes and Prices in August 2025

Summer 2025 marks a pivotal moment for the French real estate market, with concrete signs of a recovery that began in the spring. After several months of hesitation and temporary slowdowns, the market shows significant improvement: according to the latest consolidated figures, the first half of 2025 saw a notable +12% increase in real estate transactions compared to 2024. This positive trend is fueled by renewed buyer confidence, supported by stabilized interest rates and extended tax incentives.

However, this recovery remains moderate and varies depending on the region and type of property. In August 2025, real estate prices show relative national stability, with a slight average increase of +0.4% across the country, notably driven by major cities. This trend reflects both caution and price resilience in the face of ongoing economic uncertainty.

Surge in Signed Agreements in the First Half of 2025

The latest figures from real estate networks, confirmed by notaries, indicate a marked rebound: preliminary sale agreements recorded in the first half of 2025 are up around 20% compared to the same period in 2024. This surge is notably due to the gradual easing of inflationary pressures and a slight drop in interest rates, making mortgage access easier.

However, some experts consider this improvement fragile, describing a “zigzag market” sensitive to interest rate fluctuations and the macroeconomic situation. Summer 2025 therefore represents a strategic window for savvy buyers, as well as for sellers eager to close their deals quickly.

Regional Disparities and Real Estate Price Evolution in August 2025

The French real estate market remains heavily marked by significant regional disparities. While major cities such as Bordeaux, Lyon, and Toulouse see moderate price increases per square meter, some rural and suburban areas are experiencing stagnation or slight declines.

In Paris, prices are rising again (+2.7% on average), supported by sustained demand and a still limited supply. Conversely, in regions like Grand Est or Bourgogne-Franche-Comté, the market remains stable or slightly declining, offering potential buyers attractive opportunities with greater room for negotiation. This diversity highlights the importance of a local approach in any real estate purchase or investment strategy in August 2025.

Mortgages & Purchasing Power in August 2025

Mortgage Rates in July and August 2025

As of July 29, 2025, CAFPI reports continued stability in average mortgage rates:

3.09% over 15 years (+0.05 points),
3.16% over 20 years (+0.01),
3.28% over 25 years (stable).

The best profiles still access even better conditions, with negotiated rates as low as 2.79% over 10 years, 2.77% over 15 years, 3.00% over 20 years, or 3.05% over 25 years. According to the Journal de l’Agence, this environment creates a strategic window for borrowers in the summer, with banks potentially moving toward further rate cuts in the fall, as long as the 10-year OAT hovers around 3.2%.

Real Estate Statistics: The Concrete Impact of Rates on Borrowing Capacity and Financed Surface Area

This rate stability generally preserves real estate purchasing power, but disparities are beginning to appear across cities:

In Paris, the financed surface area drops by -0.11 m² per month,
-0.08 m² in Nice,
-0.81 m² in Bordeaux,
More sharply, -3.03 m² in Lyon and -3.67 m² in Lille.

Nevertheless, mortgage activity remains strong, with CAFPI processing 40% more applications in the first half of 2025 compared to 2024. Thus, even in major cities where the financed surface area slightly decreases, buyers are still able to secure real estate projects under favorable conditions, notably through rate negotiations and financing schemes like the PTZ.

In summary, as of summer 2025, mortgage rates remain relatively stable, offering a favorable environment for purchasing or investing—provided the application is well-prepared. Regional disparities in financed surface area are moderate, but a smart financing strategy can make the difference between a viable project and a delay.

Summer Opportunities: Negotiation and Buying Timing in France’s Real Estate Market

Summer 2025 offers a particularly strategic window to carry out a real estate project. The overall trend observed since the first half of the year is confirmed: a slight recovery initiated in spring is now taking hold across much of the country. This recovery is strengthened by a drop in interest rates, creating an ideal time for many buyers to move forward with their plans.

However, depending on the situation and geographic sectors—especially large metropolitan areas—conditions may vary significantly. Buyers must therefore adopt a strategy tailored to both the types of properties they seek and their borrowing capacity. Looking to buy your main residence or invest in property? Check out our real estate listings in France to find the perfect match!

Why Summer 2025 Is Strategic for Buyers

Summer traditionally offers more leverage for buyers, mainly due to reduced competition. With household confidence boosted by the European Central Bank's rate stabilization, more buyers are moving forward, especially in areas where supply remains abundant.

This seasonality combines with a unique situation this year: the recovery in sales since the first half of the year has increased market attractiveness while avoiding price surges. Despite ongoing declines in regions like Rhône-Alpes or mixed trends in Île-de-France, this period is generally favorable for effective negotiation. Sellers—especially those facing job relocations or economic constraints—are often more open to price discussions.

Winning Habits: Application, Financing, and Anticipation

To take advantage of these opportunities, buyers need a clear strategy. While some may consider direct purchases from owners, going through a real estate agency remains a key safety net, facilitating negotiation and swift completion.

In this context, preparing your financing file in advance is essential, particularly with established banks that are regaining positive momentum thanks to interest rate stability. This favorable environment should be leveraged quickly before a potential rate hike due to monetary policy changes or international events such as the war in Ukraine, which could impact the European economy in the medium term.

Additionally, it's wise to consider the evolving regulatory framework—particularly rent controls in some major cities—to best secure rental investments. First-time buyers should also consider the medium-term potential of selected properties, especially single-family homes, which currently show strong value growth in various regions.

Finally, using this strategic summer window to complete a real estate project helps avoid uncertainty in the coming months, benefiting from attractive borrowing conditions and a stabilized market across France.

Rental Investment and Energy Regulations in August 2025

Summer 2025 highlights two major challenges for real estate investment: on the one hand, energy regulations linked to new Energy Performance Diagnostic (DPE) standards; on the other, evolving profitability conditions for rental properties. Investors must adapt their strategy accordingly, taking into account both increased regulatory constraints and specific market opportunities.

DPE, Energy Sieves, and a Struggling Rental Market

Since the beginning of 2025, energy regulations have become stricter: properties rated G by the DPE can no longer be rented. Starting in 2028, this ban will extend to F-rated properties, prompting an immediate uptick in energy renovations.

This regulatory shift is gradually reducing the rental supply, especially in regions dominated by older housing stock. As a result, pressure is rising on the rental market, creating imbalances between supply and demand in high-demand cities like Lyon, Toulouse, or Bordeaux. For investors, the signal is clear: compliant or renovated properties must now be prioritized to ensure better value and long-term rental stability.

Promising Areas and Current Rental Yields

Given these regulatory constraints, rental investors must now carefully target areas where returns remain favorable.

In this regard, some suburban cities—especially near large metropolitan areas—are standing out, offering net rental yields between 3% and 5% on average. Notably, areas like Meyzieu near Lyon, Pessac near Bordeaux, or Blagnac near Toulouse benefit from high rental demand combined with relatively affordable property prices. These cities show promising trends thanks to student demand and stable job markets.

Additionally, diversified REITs (SCPI) remain a credible alternative for investors looking to secure their investment while avoiding the direct constraints of energy renovations. This channel offers easy access to residential and commercial real estate while spreading risk on a national or even European scale.

Finally, renovation opportunities remain attractive, particularly when targeting older properties in rapidly evolving urban areas where local authorities actively promote energy upgrades with specific subsidies.

These high-value strategies require advanced expertise and professional support, once again highlighting the importance of guidance from specialists in older, new, residential, or commercial real estate. Contact your local Optimhome real estate advisor.

Real Estate Advice for Property Sellers in August 2025

During this summer of 2025, the real estate context is particularly favorable for property sellers. However, to make the most of this opportunity, it’s essential to adopt an effective strategy to enhance your property and close the sale quickly. Here are the key recommendations for a successful sale this summer.

Taking Advantage of a Favorable Market for Selling

The activity rebound since spring 2025 presents a real opportunity for sellers. The market is experiencing a significant sales recovery in most regions, notably in Île-de-France and Rhône-Alpes. Buyers are back thanks to stabilized interest rates, and demand is especially strong in attractive urban areas.

To fully benefit from this dynamic market, it’s advisable not to postpone your sale until after the summer. Traditionally quieter, the summer period now attracts serious and motivated buyers determined to finalize their project before any possible rate increase or less favorable market developments in the fall.

How to Properly Showcase Your Property in August 2025

To sell effectively in August 2025, showcasing your property is crucial. In this competitive environment, presenting a spotless home is essential. Minor renovations or refreshes—such as a fresh coat of paint or home-staging—can significantly boost the appeal of your property, whether it’s a detached home or a main residence apartment.

The DPE also plays a key role: good energy performance reassures buyers, especially during regulatory crackdowns on energy-inefficient homes. Conducting a detailed assessment and anticipating necessary renovations will greatly ease the sale process. Finally, set a realistic price in line with local market trends. Relying on a professional, such as an Optimhome advisor, ensures precise positioning and optimal marketing.

Opportunities Across Real Estate Sectors in Summer 2025

Summer 2025 also brings developments and opportunities specific to each real estate sector. Here’s an overview of the key segments to watch and tailor your real estate strategy accordingly.

New Property: A Favorable Time for Tax Incentives

The new-build market remains attractive thanks to active tax relief programs like the Zero Interest Loan (PTZ). Property developers are launching new projects regularly—particularly in regions like Occitanie or around major cities—offering great opportunities for investors seeking tax advantages and long-term value from new properties.

Life Annuities: A Secure and Growing Alternative

The life annuity market is booming. Amid economic uncertainty, it appeals both to seniors seeking extra income and to buyers looking for secure investments with low initial costs. This segment is especially dynamic in retiree-friendly regions such as the Alpes-Côte d’Azur and western France.

Luxury Real Estate: A Resilient and Selective Market

Luxury real estate continues to show resilience in the face of economic fluctuations. In Paris, the Côte d’Azur, or the French Alps, high-end properties continue to attract wealthy international clients. Despite some caution due to geopolitical tensions, demand remains strong, and prices for exceptional properties are reassuringly stable for sellers.

Rental Investment: Strategy and Profitability During the Summer

Summer is ideal for rental investments: purchasing before September allows for a quick rental at the start of the academic or work year. High-demand zones in large cities—especially Lyon, Toulouse, Montpellier, and Bordeaux—remain the most attractive for rental yields. Smart investors are already anticipating the impact of upcoming rent control policies to refine their investment strategies.

Commercial and Business Real Estate: Summer Momentum Returns

Finally, commercial real estate is regaining momentum after months of caution driven by economic uncertainty. Retail spaces and offices in prime downtown locations or dynamic business districts are attracting investors again. Coworking spaces, in particular, remain popular due to their flexibility and rising demand from companies seeking agile solutions.

Conclusion: Key Takeaways on the Real Estate Sector in August 2025

Confirmed recovery: +12% in real estate transactions in the first half of 2025 compared to 2024.
Price stability: a moderate national increase of +0.4% on average, with strong regional contrasts.
Attractive and stable mortgage rates: under 3% over 20 years for buyers with the best applications.
Stricter energy regulations: ban on renting G-rated properties starting in 2025.
Strategic summer window for negotiation: favorable balance of power for well-prepared buyers.
Varied opportunities across segments: new-build, life annuity, luxury, rental, and commercial real estate.
Essential property enhancement: importance of the Energy Performance Certificate (DPE), home staging, and setting a realistic price based on a reliable valuation.
Positive medium-term outlook: structurally resilient market despite economic uncertainties.
Professional support recommended: secure and ensure the success of your real estate project—buying or selling—with your local Optimhome advisor.

FAQ – The Real Estate Market in August 2025 in France

How is the real estate market doing right now?

The real estate market has shown a moderate recovery since spring 2025, with transaction volumes up 12% in the first half of the year and generally stable prices.

When will the real estate market decline?

In the short term, no significant downward trend is expected by the end of 2025, but a prolonged price stabilization is likely due to ongoing economic uncertainties.

Will real estate prices increase in 2025?

In 2025, a slight price increase is observed (+0.4% on a national average), but it is very moderate and mainly driven by major cities such as Paris, Bordeaux, or Lyon.

What is the future of the real estate market?

Looking ahead 10 years, the outlook for the real estate market remains positive, supported by structural housing demand and interest rates expected to stay reasonable despite potential economic fluctuations.

Why is the real estate market slowing down across Europe?

The generalized slowdown in Europe does not reflect the French real estate market, which is currently in recovery mode, with stabilized interest rates and preserved purchasing power supported by measures such as the 2025 PTZ (Zero Interest Loan).

When will the real estate market recover?

The French real estate market has already entered a recovery phase since spring 2025, and this trend could strengthen by the end of 2025 or early 2026 if interest rates remain stable or decrease slightly.

What is the average price per m² in France in August 2025?

The average price per m² in France in August 2025 is around €3,100, with significant variations depending on the region, major cities, neighborhoods, and characteristics of each property.

How can I find out the sale prices of nearby properties?

To find out the exact sale prices of nearby properties, consult official databases such as “Demande de Valeur Foncière” (DVF), or reach out to an Optimhome real estate advisor for an accurate valuation of your property's potential selling price.