Paris Real Estate Spring 2025: Market Recovery and Cautious Price Growth

The Paris property market shows signs of emerging from a prolonged downturn. Sales are increasing, prices are stabilizing, and international buyers are returning, according to 56Paris.

Q1 2025 Market Trends

In the first quarter of 2025, apartment sales in historic Paris buildings rose 25% compared to Q1 2024. In the wider Île-de-France region, transactions in the resale market grew by 21%. It was the first major uptick in activity after two years of decline. Prices remain below 2022 peaks — in February 2025, the average price per sq. m in Paris was €9,420.

Trends vary significantly by district:
- 6th arrondissement: €13,550/sq. m (down 1.7% YoY), strong demand in Saint-Germain-des-Prés.
- 7th arrondissement: €14,330/sq. m, with a 2.6% price increase in Gros-Caillou due to high demand near the Eiffel Tower.
- 3rd arrondissement: €11,239/sq. m (down 6.7%), though northern Marais properties remain attractive.
- 4th arrondissement: price drop of 6.2%.

Outer districts (9th–20th) are gaining interest from investors and younger professionals. The 18th arrondissement (Montmartre) remains a favorite among foreigners for its charm and relative affordability.

According to notaries, Paris continues to top the national price charts, though homes are more expensive in Toulon and Lyon. More on regional trends

Market Drivers

A key factor driving sales was the April 1 tax increase on property transfers in Paris, prompting many to buy before the hike. Meanwhile, easing mortgage conditions and falling interest rates have slightly improved affordability.

High-quality, renovated homes — previously withheld — are returning to the market, boosting inventory and buyer interest.

Regional Trends Across France

Some cities saw solid price growth in 2024:
- Montauban (+6.2%)
- Metz (+3.4%)
- Caen (+3.2%)
- Orléans (+3.1%)

Meanwhile, prices fell sharply in:
- Châteauroux (-16.2%)
- Southern Corsica (-14%)
- Reims (-11%)
- Tours (-9.9%)

Top prices are found in the south: Toulon (€450,600 per house), Southern Corsica (€446,100), Montpellier, Lyon, Aix-en-Provence, and Bordeaux. Most affordable: Châteauroux (€116,100 per house), Troyes, Amiens, and Limoges.

Outlook for 2025–2026

56Paris expects housing demand to rise 14% YoY in Q2 2025, with average time on the market falling to 68 days. Premium property prices could reach €25,000–€30,000 per sq. m, and even €35,000 in exceptional cases. Average prices may rise to €9,750/sq. m by July.

Yet longer-term forecasts are mixed. According to Investropa, a price correction of 7–15% may hit Paris and other areas in 2026 due to high rates and rental yield pressures.

Still, recovery signs are mounting. Groupe BPCE projects a 3–6% increase in transaction volume in H2 2025, with prices up around 1%. Mortgage rates may stabilize around 3.2%, with new buyer aid programs on the horizon.

According to Investropa’s May report, French real estate saw its first positive YoY growth in six quarters (+0.5%), especially in mid-sized cities and coastal areas. However, the recovery remains fragile due to inflation and housing supply shortages in popular areas.