House price index
In line with the 2024 forecast, the negative trend in the French property market continued through 2025 and is likely to persist into 2026. At present the market index is lagging even behind eurozone inflation.
Number of real estate transactions
Transaction volumes in 2025 point to a moderate recovery of the market. This does not, however, materially change the overall picture. The recession persists and the market is expected to remain in a prolonged downturn.
Transaction volumes in major cities
Transaction volumes are declining in every major city, including Paris, Nice and Lyon.
Rental yield
Average rental yield has historically been higher in Marseille; the gap versus other cities is nonetheless small. Overall, the average rental yield in France stands at around 4.2% per annum.
France has historically offered a relatively stable investment environment; at present, however, investment in the country is exposed to the risk of significant political change. Far-right parties currently hold 24.8% of the seats in parliament, and the presence of a substantial share of representatives with radical views in itself raises the probability of marked shifts in domestic policy and tax legislation.
Against the backdrop of relatively low investment returns, this means that investment in French real estate should be approached with careful consideration of all attendant risks. If the primary objective is profit, it may be more prudent to consider alternative markets with a more stable investment climate and higher return potential.
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