Key Trends Shaping the French Property Market in 2025
The French property market is experiencing notable shifts as we move into 2025, with key trends emerging across the country. From rising interest rates to evolving buyer preferences, here’s the latest snapshot of the property landscape in France.
Interest Rates Influencing Buying Power
After steady increases in 2024, mortgage rates have started to decline in early 2025. As of February, average rates stand at approximately 3.09% for 10-year loans, 3.16% for 15 years, 3.23% for 20 years, and 3.30% for 25 years. This drop is boosting buyers' purchasing power and stimulating the property market. While some major cities are seeing a slowdown in transactions, regions like Nouvelle-Aquitaine and Occitanie continue to attract interest, particularly from international buyers seeking character properties.
International Buyers Making a Strong Comeback
Despite economic uncertainties, British, Dutch, and Belgian buyers remain active in the French market, undeterred by currency fluctuations. In rural regions like Lot-et-Garonne and Dordogne, demand for character properties with land is driving competitive sales, especially for renovated farmhouses and village homes with modern amenities.
Growing Demand for Sustainable Living
Eco-friendly homes are in high demand. Properties with high energy performance ratings (DPE A or B) are commanding premium prices, while older homes requiring extensive renovations face longer selling times. Buyers are prioritising solar panels, heat pumps, and sustainable building materials, reflecting a growing environmental awareness.
Urban vs Rural: The Great Divide
While property prices in major cities have plateaued, rural and semi-rural areas continue to thrive, fuelled by the remote working trend. Areas such as Aude, Gers, and Lot-et-Garonne are benefitting from buyers seeking larger homes, outdoor space, and a better quality of life.
What’s Next?
Experts predict a moderate price correction in overheated markets, but overall, the French property sector remains resilient. For both buyers and sellers, 2025 presents exciting opportunities—whether you’re looking for a chic city apartment or a tranquil countryside retreat.
Stay tuned for more updates on France’s ever-evolving property market!
