French Real Estate Market Lessons From 2024…For 2025

By Jay Corless, edited by Adrian Leeds

The French real estate market in 2024 was nothing short of a rollercoaster, offering twists, turns, and plenty of surprises. Drawing from the insightful report of the Notaires de France, we delve into a year of shifting trends, surprising resilience, and evolving buyer preferences. This comprehensive snapshot unveils a market adapting to economic pressures, regulatory shifts, and changing lifestyles. From the grandeur of Paris to the sun-soaked charm of Nice, let’s explore what this year has revealed about property values and buyer ambitions in France.

Notable transaction volume and property price declines marked the French real estate market in 2024. A total of 780,000 transactions were recorded, representing a staggering 17% drop from the 2023 levels. Prices of apartments and houses fell by an average of 3.9% across metropolitan France, signaling a market correction after years of rapid appreciation. However, amidst these challenges, buyers have gained slightly more purchasing power. The financeable areas for both apartments and houses have increased modestly.

Apartment prices declined to levels last seen in 2021, while house prices stabilized at levels observed in early 2022. The Île-de-France region experienced steeper declines than provincial areas, reflecting differing market pressures and local dynamics.

MAJOR TRENDS IN 2024

The first major trend of 2024 was a slight improvement in purchasing power despite rising credit costs. As mortgage rates climbed, buyers extended their purchasing power slightly, affording larger properties than a year ago. This meant an increase of one square meter for apartments and three square meters for houses in metropolitan France.

The second trend involved energy efficiency becoming a focal point for buyers and regulators. Homes with higher energy ratings, such as A or B, commanded premiums in the market. In contrast, properties with poor ratings, like F or G, saw a decline in demand. Regulatory efforts to phase out energy-inefficient properties have begun to reshape preferences and pricing dynamics.

Regional disparities emerged as another significant trend. The Île-de-France region saw prices return to 2019 levels, with an annual decline of 3%. In contrast, provinces were more stable, experiencing only minor price decreases. Lastly, the market for building plots experienced a sharp decline, with transactions nearly halving from mid-2023 levels, reflecting a slowdown in new construction activity.

INTERNATIONAL BUYERS IN THE FRENCH MARKET

Despite challenges in the domestic market, international buyers represented 3% of the overall market. They continued to view France as an attractive destination. The French lifestyle, celebrated globally for its unique blend of culture, cuisine, and scenic beauty, remained a powerful draw. Favorable exchange rates, particularly for buyers from the United States and the Middle East, further enhanced the appeal of French real estate.

In 2024, international buyers accounted for a significant share of transactions in regions such as the Alpes-Maritimes, which represented 13% of buyers, up from 9% in 2021. In Provence and Paris, the demand from international clients remained robust, with British and American buyers leading the charge in urban luxury markets. At the same time, Middle Eastern investors favored larger estates and properties with historical significance.

Preferences among international buyers are increasingly aligned with global sustainability trends. Properties with high energy efficiency ratings were particularly sought after, with A and B-rated homes commanding premiums of up to 7% over lower-rated properties. This shift reflects a growing awareness of environmental considerations among global investors.

With its Mediterranean allure, regions like the Côte d’Azur continued to attract high-net-worth individuals seeking second homes or investment properties. Meanwhile, smaller cities such as Bordeaux and Lyon also experienced steady interest from European buyers drawn to their blend of charm, accessibility, and economic opportunity.

ZOOM IN ON NICE AND PARIS

Paris, host of the 2024 Summer Olympic Games, with its iconic architecture, historic landmarks, and cultural significance, remains France’s most expensive real estate market, with a median price of €9,490 per square meter. However, the city experienced a significant price correction in 2024, with values dropping by 6.7% over the year. Buyers in Paris faced limited purchasing power, with the average financeable surface area shrinking to just 12 square meters. The city’s high-end neighborhoods, such as the 7th arrondissement and Saint-Germain-des-Prés, saw some of the steepest declines in transaction volume as affordability became a barrier even for luxury buyers.

In contrast, Nice showcased remarkable resilience in 2024, standing out as a Mediterranean gem. Prices in this coastal city remained stable despite the nationwide trend of declining property values. At a median price of €4,720 per square meter, Nice offers significantly better value for money compared to Paris. A €300,000 budget in Nice could secure a spacious two-bedroom apartment with a balcony overlooking the sea or a three-bedroom home on the outskirts with a garden.

The quality of life in Nice is a major driver for its property market. The city enjoys over 300 days of sunshine annually, a laid-back lifestyle, and easy access to the Riviera’s stunning beaches and cultural attractions. Nice also benefits from strong demand from domestic and international buyers, particularly retirees and investors seeking rental income in this popular tourist destination.

When comparing the two cities, Paris experienced a sharp price decline due to economic pressures and rising credit costs. At the same time, Nice maintained stability by leveraging its unique appeal. Buyers in Nice could afford more space and a higher quality of life than their Parisian counterparts. While Paris continues to be a global icon with an enduring cultural and economic appeal, Nice’s charm lies in its relaxed Mediterranean lifestyle, scenic beauty, and affordability, making it an attractive alternative for property buyers.

WHAT YOU GET AT WHAT BUDGET*

Budget considerations remain at the forefront of every buyer’s mind. With €300,000, the options vary dramatically depending on the location and type of property you seek. In Paris, this budget might secure a small studio or a modest one-bedroom apartment in an outlying arrondissement. By contrast, in Nice, those with the same budget could buy a spacious two-bedroom apartment close to the city center or a cozy three-bedroom home on the outskirts.

For those looking beyond these two iconic cities, €300,000 can stretch significantly further. In cities like Strasbourg or Lille, this budget can secure a comfortable three-bedroom apartment in a desirable neighborhood. In smaller towns, particularly in the provinces, €300,000 could afford a sizeable family home with land offering exceptional value.

The disparity highlights the importance of careful consideration when selecting a location. While Paris may offer unparalleled cultural and economic opportunities, Nice provides a relaxed lifestyle and more generous property options for the same investment. Each buyer must weigh the trade-offs to determine which city aligns with their priorities and aspirations.

LOOKING TO 2025

The 2024 French real estate market was a nuanced interplay of challenges and opportunities shaped by economic pressures, regulatory changes, and evolving buyer priorities. With its timeless elegance and cultural allure, Paris remains a cornerstone of the global property market. Yet, it faces affordability challenges reshaping its high-end and mid-range segments. In contrast, Nice has emerged as a beacon of stability and value, offering both lifestyle and investment potential in equal measure.

France continues to be a dream destination for international buyers, offering a unique blend of heritage, modernity, and natural beauty. The rising emphasis on energy efficiency highlights the market’s alignment with global sustainability trends, providing opportunities for savvy investors to capitalize on environmentally conscious properties.

Whether navigating the vibrant streets of Paris, basking in the Mediterranean charm of Nice, or exploring the hidden gems in provincial towns, buyers in 2025 will have diverse options tailored to various aspirations and budgets. The decision between urban sophistication and coastal tranquility ultimately depends on individual priorities. Still, one thing is clear: the French real estate market continues to captivate and inspire despite fluctuations.

As 2025 begins, last year remains a reminder that real estate in France is not merely about property but a way of life. From the grandeur of the City of Light to the sun-soaked Riviera, the French property market promises a journey of discovery, opportunity, and unparalleled beauty.

*Special Note: Don’t be fooled by what is reported here! The prices reported by the Chambre de Notaires de France DO NOT reflect the current market for a variety of reasons. When they are recorded, the negotiations were done MONTHS before the report. They do not include agency commissions, furnishings and other expenses that reduce the price on the deed. They also average properties across a broad range of locations. You cannot use these price points to plan your property purchase budget! But you can use the trend information to learn more about the market and make wise decisions! And we can help you plan your budget realistically!

A bientôt,