‘Optimism’ for French property market as demand and prices increase

Rising demand in the property market is fostering optimism, however there are warnings over limited interest from rental investors, which continues to prevent broader overall growth.

An increase in non-new build property prices across the third quarter of 2025 reached +0.7%, according to the latest estimates from the Notaires-Insee report.

In addition, year-on-year house sales between September 2024 - September 2025 reached 921,000, higher than the 916,000 in August 2025 and far above the 832,000 in September 2023 - 2024.

This largely matches predictions from notaires in their most recent set of data (covering the period up to June 2025), which is the most detailed available on the property market.

The Notaires-Insee estimates are based on preliminary data, which is then used by the Notaires de France to compile full information for release in the months thereafter.

Demand and mortgage offers see increase

“Estate agents have regained their morale,” despite remaining cautious, said president of estate agent chain Orpi Guillaume Martinaud, quoted in media outlet France 24.

“Sales mandates are coming in again… buyers are showing up, and sellers who got carried away [are dropping prices to more realistic levels]” he added.

Much of the positivity comes from increased buyer demand, both from first-time buyers and those looking to climb the property ladder. 

Demand increased 9% between October 2024 - October 2025, equating to levels seen in October 2021 when a turning point in mortgage rates (which increased rapidly from 1% to more than 4%) deterred many would-be buyers.

Buyers in the market are aware that current rates of around 3% are stable and are unlikely to drop to pre-Covid levels. 

In turn, they are no longer waiting to enter the market and are willing to pay these rates. 

The number of mortgages offered in France between January - September 2025 is 38% higher than the same period in 2024. 

Just over half (53%) of mortgages offered were to first-time buyers, whose resurgence is buoying market demand. 

Their return, and the willingness of property owners to slightly lower prices while simultaneously seeing them increase, is pushing the market forward.

Paris region spearheads growth 

The Île-de-France region, the most populous in France and home to Paris, outstripped growth figures in other regions, highlighting further confidence in the return of a strong market. 

The region was responsible for more than 120,000 of September 2024 - September 2025 property transactions, and recorded some of the strongest growth figures.

In particular, flats in the capital saw significant price increases of +1.1% between Q2 and Q3 of 2025. 

Year on year, house prices in the region overall increased by +0.4% between September 2024 - September 2025. This is the first positive recording after 10 quarters of drops.

Lack of rental investment sparks concern

This optimism is somewhat tempered by the growing absence of rental investors as a key group in the market. 

Buy-to-let investors are increasingly deterred from the market for two main reasons, explained Thomas Chaumeron, manager of the ISR estate agency in Paris to France 24. 

Mandatory energy efficiency rules on rentals, progressively banning the letting of properties graded least energy efficient, are prompting investors to look elsewhere, due in large part to outlay of costs required to meet the necessary thresholds.

Additionally, rent controls in major cities such as Paris – which may soon spread to other areas if communes believe they are effective – are further leading investors to hesitate.