France’s property market is now entering a ‘stabilisation phase’ say notaires, with buoyant demand and rising prices.
Overt optimism should be avoided however, as the market’s bounce back from the post-Covid slump remains slow.
Price drops are possible in the coming months, and geopolitical tensions may stunt further growth.
These are the main takeaways from the latest report on the property market released earlier this week by Notaires de France, the national body representing notaries in France.
This report covers the sale of all flats and houses across the country, including existing housing stock.
Due to the time it takes to compile this information, data sets cover the period two quarters behind publication – in this case, up to December 31, 2025.
However, notaires also look at current trends to predict upcoming changes in the market.
Below are five main points from the report.
1: Sales have restarted but not rebounded
Property sales are returning to pre-Covid levels, albeit slowly.
Between February 2025 and February 2026, 958,000 property sales were recorded by notaires in all French regions (excluding Mayotte).
This is well above the peak of the slump (832,000 sales between September 2023 - 2024), with steady growth between September 2024 and February 2026.
However, it remains below the pre-Covid figures (1,093,000 between January 2019 and January 2020).
“Growth remains limited, with an increase of approximately 2% between 2023 and 2025, illustrating a gradual restart without a significant rebound,” notaires said in the report.
At the same time, “households appear relatively resilient in their purchasing decisions. Real estate retains its status as a safe haven, perceived as a secure investment and a long-term commitment.”
“Doubt remains, but at this stage, it has not translated into distrust of the property market.”
Notaires de France are set to release information about fluctuating sales figures on a departmental basis between 2022 and 2025, showing the drastic change in figures from the post-Covid slump and the ensuing recovery.
2: Property prices increased across 2025…
Year-on-year property prices are finally on the rise in almost all areas, leading to national increases.
Prices for resale properties across the entire country rose by +1.1% between October/December 2024 - October/December 2025.
This was higher outside of Île-de-France, with the provinces (‘en province’) seeing a rise of +1.2% compared to a +0.7% rise in the capital region.
Indeed, the only subsection of property to see prices fall across the period were houses in Île-de-France (a relative minority as many buildings in the region are flats), which fell by -0.4% across the above dates.
Cities in the north saw strong growth in flat prices – you can read more about them in our article here.
House prices saw less dramatic changes, but there was growth among most cities, particularly mid-sized cities. You can read our overview of house prices here.
3: …but are prices set to drop soon?
However, notaires are cautious that prices may drop in the coming months.
Projections based on preliminary sales agreements at the end of May 2026 indicate a year-on-year drop of -0.2% across all property types.
While flats (+0.3%) are expected to weather the storm better, houses (-0.5%) could see prices fall in many areas.
Alarm bells are not ringing however, with notaires pointing towards natural market tendencies.
“The market… remains focused on adjustment through negotiation rather than abrupt corrections.
“In this context, maintaining prices in line with household purchasing power is a determining factor: any overly rapid rise in values, in a still fragile environment, could derail a dynamic that remains moderate.”
4: Geopolitical tensions may affect mortgages and purchases
Mortgage interest rates increased slightly at the start of the year, rising in February to around 3.3% for a 20-year loan (compared to 3.17% in January 2026).
This trend was mirrored across Europe, as the European Central Bank kept interest rates the same.
An increase in outstanding mortgage loans at the start of 2026 compared to 2025 points to more contracts being signed than previous mortgages finishing.
However, notaires expect increasing wariness from buyers due to the ongoing conflict in the Middle East, seeing sharp increases in both energy prices and fuel costs.
Households grappling with rising expenses are less likely to sign a mortgage, fearing that a loss of purchasing power would force them to tighten their belts.
This is an issue “particularly in peri-urban and rural areas, which are more dependent on mobility and energy costs. Stable financial conditions appear to be a key factor in maintaining current momentum,” said notaires.
5: New build market remains sluggish
Permits for new-build properties are slowly on the increase, with a rise of +3.3% between January and February 2026, but difficulties in accessing available land remain a concern.
This is particularly the case for detached single-family houses, although all housing types are struggling to see approvals.
Worryingly, the number of new projects started (as opposed to simply approved) was down -1.6% between the two months.
Sales of new-builds are up by +4.5%, pointing to some growth, although it may be difficult to maintain this with the aforementioned geopolitical tensions.
Recent schemes to boost new-build purchases have so far not produced expected effects, said notaires.
