With the arrival of the new year, we traditionally take stock of the past to assess the current state and prospects of the French real estate market. Our analysis of 2024 has revealed key trends that have influenced pricing and transaction volumes. Based on this data, we can forecast developments for 2025 and offer our clients and partners the most promising directions for investment and cooperation.
State of the Real Estate Market in 2024
In 2024, the market followed a downward trajectory that began two years earlier, exacerbated by an increase in interest rates from less than 1% to 4.5%. The number of real estate transactions peaked at 1,207,000 in mid-2021, before falling to 875,000 in 2023 and settling around 770,000 transactions for the year 2024. This dramatic decrease was extremely severe but remains far from the historic lows of 2009 and 2013. The rise in interest rates since 2022 has significantly increased the cost of borrowing and caused a collapse in the number of mortgage loans, dropping by 50% at its lowest point. Yet, 2024 could well mark the end of three years of continuous decline in the volume of real estate transactions in France.
Price disparities across cities in France
In terms of prices, disparities are noticeable from one city to another. Some cities like Marseille, Nice, Nancy, or Reims have fared better, while others like Paris, Lyon, Nantes, and Montpellier have seen more drastic price corrections. Improvement of Real Estate Market Conditions in 2025 The main cause of the current crisis, the increase in interest rates, has seen a slight decline since the beginning of 2025, facilitating a restart of mortgage lending activity. Forecasts for 2025 anticipate a recovery of the market, conditioned by political and fiscal stability, stabilization or a slight decrease in prices per square meter, and the continuation of the reduction in interest rates. The future therefore looks promising for a recovery of the real estate market this new year, with projections around 900,000 transactions, indicating an increase compared to 2024 and a slight rise compared to 2023.
Is it worth selling your property now?
For those considering selling, it seems wise not to delay putting their property on the market, although the market is not in a phase of growth. In conclusion, the time seems opportune to sell, especially at the beginning of the year, a period generally active. It is essential to determine precisely the market value of your property to make the most of the current context.
