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France’s property market is facing a ‘bumpy recovery’ say notaires, as external factors continue to influence its fragile state post-Covid. 

While figures point to slow but sustained growth in sales numbers and prices, relatively high interest rates for mortgages and a challenging rental market could hinder improvements. 

The analysis comes from the latest report from the Notaires de France, which covers the sale of all non-new build properties in the country. Statistics relate to the second-most recent quarter, up to June 2025. 

In addition, notaires also use preliminary data to assess current trends. 

Below are the six main points from the latest release. 

Market continues to recover but rebound is not assured

The number of non-new build property sales that took place between August 2024 and August 2025 reached 916,000.

This is compared to a low point of 832,000 between September 2023 and September 2024, but still considerably under the record of over 1.2 million in August 2021 to August 2022.

The current figure continues the trend of quarterly rises since October 2024 after several quarters of sharp falls caused by the post-Covid slump. 

Growth has been supported by the European Central Bank (ECB) consistently lowering interest rates, a measure that may soon stop as the bank looks to stabilise figures.

However, although ECB interest rates are just over 2%, French banks set their fixed mortgage rates referencing ‘OATs’ (Obligation Assimilable du Trésor), treasury bonds usually with a period of 10 years. These are higher at some 3.45%.

Additionally French banks’ lending criteria remains prudent, prioritising the best candidates despite government pushes for better access to mortgages for more would-be borrowers via initiatives such as longer mortgage terms and relaxing typical loan-leverage criteria.

At the same time, increases to notaire fees - actually taxes collected by local authorities - may impede purchasing power, even allowing for the fact that first-time buyers are exempt from this. 

“The real estate market is contracting, driven primarily by owner-occupiers,� says the report. “Purchases are mainly motivated by the need for housing, not by the search for returns. Investors, having abandoned the new-build market, seem to be also turning away from the existing property market.�

This may have a long-term effect on the number of sales – and therefore prices – of homes. 

However projections for price increases over the next quarter and entire year remain positive. 

Mixed results for sales figures

“The economic situation remains highly mixed, and while some major cities and coastal areas are experiencing a return to some level of activity, many rural areas and medium-sized towns are still struggling to regain momentum,â€� reads the report. 

Despite this, many smaller cities such as Saint-Etienne (Loire), Châteauroux (Indre), and Limoges (Haute-Vienne) all saw house prices increase, as did coastal areas including Brest (Finistère) and Caen (Calvados). 

Toulouse, Lyon, and Nantes all saw prices fall although more sales were recorded in larger cities. 

Across the country, year-on-year price increases between April - June 2024 and April - June 2025 reached +0.3%. This matches figures from the first quarter showing limited but sustained growth. 

Outside of Paris, prices for existing homes rose year-on-year for the second consecutive quarter: +0.5% in the second quarter of 2025, after +0.6% in the first quarter of 2025. 

The price increase was more pronounced for apartments (+0.7% after +1%) than for houses (+0.4% after +0.4%). 

In Paris, prices dropped slightly, but saw a lower percentage fall than at the end of 2024 and beginning of 2025.

Early data from preliminary contracts to the end of October 2025 suggests that in November 2025, a year-on-year increase (between November 2024 - November 2025) will reach +1.8% for flats and +1.3% for houses in mainland France and Corsica.

A full overview of house price changes recorded in the data can be seen in our article (plus map) here. 

In terms of flats, price increases were more prevalent, with only parts of the north (Rouen, Amiens) and other cities such as Grenoble and Metz seeing per m² price drops.

Rental market difficulties

The rental market is “experiencing significant pressure, particularly in large urban areas and regions where demand far exceeds supply,â€� says the report. 

“Rents are rising significantly, and quality properties are quickly snapped up, reflecting a structural imbalance between supply and demand,� it adds.

However, notaires cite a “lack of a truly stable and incentivising legal framework,â€� is making private landlords reluctant to invest in properties to let, adding that high taxes are also putting off would-be landlords. 

Unless there is a change to the legal framework notaires predict continuing stagnation in property transactions in larger areas. 

Savings push hinders growth 

Interest rates for mortgages have stabilised at just over 3% in recent months. 

This is still considerably above pre-Covid levels (which saw rates fall as low as 1%), although they remain lower than the highs of 5%+ which followed the 2008 market crash.

While this may encourage some homeowners to look to move, households are more focused on saving. 

In the second quarter of 2025, average household savings rates were 18% of disposable income, a 40-year high. 

Faced with economic uncertainty both domestically and across global markets, households at all income levels are prioritising saving over spending. 

Although in some cases these savings may be geared towards placing a deposit or an outright purchase of a property, for many it is the sign of a cautious attitude towards any spending. 

Recovery in the new-build market? 

The number of permits for new-build projects fell for the second successive month in August 2025, with a 1.4% reduction compared to those approved in July. 

However, the number of housing units where construction started in the month (after receiving prior approval) increased by 21.5%, with both family homes and flats seeing an increase.

The number of completed new-build properties being put on sale is also on the rise, suggesting a more positive end of year for builders and investors in the new-build market. 

Energy ratings affect sales 

The mandatory home energy rating rules and regulations are also affecting the market. 

The requirement since 2021 for properties to undergo a diagnostic de performance énergétique (DPE, or energy audit) before being put up for sale has provided notaires with a wealth of data.

Notably, a spike in sales of the lowest-ranked properties (‘F’ and ‘G’ on the scale) in 2022 and 2023 was recorded. 

In 2023, 17% of all property sales in France were of ‘F’ or ‘G’ rated properties. It was 11% in 2021. 

However, this was in part due to revisions on how properties were assessed, reclassifying many homes in the lower tiers. 

2024 saw a decrease in sales of lower-rated properties, thought to be due to the new rules which banned rentals of such properties until they had been improved. Thus the lower rated properties become less viable as an investment option. 

In turn, the number of ‘A’ rated properties (the highest score) remained steady at 2%, due to the relatively small number of properties with this ranking. ‘B’-rated properties fell from a market share of 5% in 2021 to 4% in 2024.

The rating is also affecting a property’s value. 

Using a ‘D’ rated property as the standard median value in an area, notaires reported that an ‘A’-rated house sold for +17% more than the median, while a ‘G’ rated house for -25% less.

For flats these figures were +16% and -12%. 

Note that in many cases properties with a higher rating also have several other desirable features which may increase their sale prices.