New real estate: stable rates and government incentives favor first-time buyers

Between April and October 2025, the market reveals a drop in prices in several major cities, stable interest rates, and a younger demographic among borrowers, supported by an expanded zero-interest loan program and favorable financing conditions. Discover the profile of these borrowers, how these trends impact their purchasing power—potential savings of up to €50.000 in some cities*—while also outlining future prospects.

Buying new is becoming more affordable: prices are falling.

Six months after the previous barometer, the downward trend in prices is confirmed in the new-build market. On the Trouver-un-logement-neuf.com portal, the average prices of two-bedroom apartments are still falling in nine of the ten largest French cities, sometimes dramatically: nearly -20% in Nantes, -11,5% in Bordeaux, and -7% in Lille and Montpellier. Only Nice is bucking this trend, with a notable increase of over 11% in the average price of a two-bedroom apartment.

This widespread decline can be explained in particular by a refocusing of supply on primary residences and first-time buyers, supported by schemes such as the BRS (Bail Réel Solidaire), or reduced VAT, which mechanically drive average prices down. However, this is not a true "crash": supply is simply becoming scarcer.

This is illustrated in Nantes, where available housing developments are increasingly focused on four- or five-room family homes, while three-room apartments, the standard type in real estate development, are becoming scarcer. In this context, the combination of falling prices and the gradual stabilization of interest rates continues to improve household purchasing power in the real estate market, but in a market facing increasing volume constraints.

For Céline Coletto, spokesperson for Find-un-logement-neuf.com: “The decline in new-build prices continues, but it is accompanied by a contraction in supply. The figures we are seeing reflect less a drop in value than a market restructuring around products accessible to first-time buyers. While buyers are currently gaining purchasing power, they actually have fewer choices. The challenge in the coming months will be to recreate supply so that this lull in prices truly benefits the sector's recovery.”

Stable rates and favorable arrangements: a winning combination for certain profiles

From April to October 2025, the mortgage market experienced stable interest rates, with very limited fluctuations. This stability can be attributed to the ECB's continued high key interest rates and prudent banking policies. The new-build market benefited slightly, with rates around 3,08% to 3,09%, supported in particular by the expansion of the Zero-Interest Loan (PTZ), which boosted the purchasing power of first-time buyers. Banks remained competitive but selective in order to manage risk. This period thus offered greater visibility and advantageous conditions for certain types of borrowers.

What is the typical profile of a borrower in the new-build market? (Comparative period: Oct 2024-Apr 2025 to April 2025-Oct 2025)

Average age: The decrease in the average age (from 37 to 35) confirms the trend towards younger borrowers in the new-build market. Young working professionals are more prevalent, which aligns with a policy focused on supporting first-time buyers. Furthermore, the proportion of 20-29 year olds has increased significantly, rising from 25% to 34%.

Average income: It fell from €4.843 to €4.567, indicating a market opening up to slightly less affluent profiles. This likely reflects a desire among lending institutions to broaden access to new-build properties for more first-time buyers.

Acquisition type: The share of primary residences jumped from 86% to 94,8%, while rental investment fell from 7% to 4,8%. The use of new construction is therefore shifting more towards personal housing, possibly at the expense of rental investment, which has been penalized by the end of certain incentive schemes and programs.

Average rate applied: The sharp drop in interest rates (from 2,03% to 1,23%) is extremely favorable to purchasing power in the real estate market. This supports affordability and allows more households to take the plunge into buying new construction. The low average rate (1,23%) is explained by the weighted average between the main loan (approximately 2% to 2,5%), the 0% zero-interest loan (PTZ), and any subsidized loans at reduced rates. This mix of financing mechanically lowers the overall rate and supports household affordability.

According to Caroline Pasquereau, Director of Communication and Marketing at Empruntis: “Our observation is twofold: on the one hand, the financing ecosystem – stable rates, adjusted terms and expanded zero-interest loans – is restoring real estate purchasing power to first-time buyers; on the other hand, brokerage expertise is becoming crucial to optimizing the financing structure, securing solvency and accelerating the bank's decision.”

For €1000/month, what is the borrowing capacity in different major metropolitan areas?

Some cities, such as Lyon, Marseille, Lille, and Toulouse, benefit from a dynamic local environment: a robust job market, regional appeal, and a revival in new construction, which facilitates access to credit and increases borrowing capacity. Conversely, in Paris, Nantes, Strasbourg, and Montpellier, the combination of limited available housing, rising local taxes, and sustained prices restricts borrowing capacity despite interest rates close to the national average.

For Caroline Pasquereau: "These differences also stem from the banks' strategies, which adapt their terms to local realities and customer profiles, as well as the varying impact of zero-interest loans or other support schemes depending on the region."

Purchasing power: what change between April and October 2025?

*Reading method for Bordeaux:

The average monthly payment will decrease from €1.801 in April 2025 to €1.594 in October 2025.

This represents a decrease of €207 per month.

On a 20-year loan (240 months), this decrease translates into approximately €49.680 in total savings over the entire term of the loan.

For Caroline Pasquereau: "Unsurprisingly, in cities where prices are falling, even with an average borrowing rate around 3,3%, buyers gain real purchasing power. Conversely, price increases like in Nice, coupled with unchanged rates, limit purchasing power and often require greater optimization of financing."

What are the short-term prospects?

For Céline Coletto from Trouver-un-logement-neuf.com: “Since the introduction of the universal zero-interest loan (PTZ) last April, reinforced by subsidized loans, first-time buyers are back on the new-build market. The average age of borrowers has fallen to 35, the proportion of 20-29 year olds is increasing sharply, and access to a primary residence is becoming easier thanks to offers specifically designed for them by property developers. This is a window of opportunity to seize to buy new before these favorable conditions change.”

For Caroline Pasquereau: "For early 2026, the new-build market is expected to remain dynamic but cautious. Interest rates, stable or rising slightly to around 3,3-3,5%, will maintain pressure on borrowing capacity, particularly in major metropolitan areas. The price decreases observed in several cities should support purchasing power, favoring first-time buyers and those purchasing primary residences. The continuation of the zero-interest loan (PTZ) and government subsidies, as well as the easing of lending criteria, will continue to facilitate access to credit. In summary, 2026 looks set to be a year of transition towards a more balanced market, with real opportunities for well-supported buyers and a marked segmentation along regional lines."

Illustrative image of the article via Depositphotos.com.