The existing home market is showing signs of recovery in 2025 after two years of crisis

"The winning combination for 2025 is controlling prices and interest rates," says Charles Marinakis, president of the Century 21 France real estate agency network. He points out that the year ranks among the top five of the last 20 in terms of the number of transactions.

With 951.000 sales estimated over the past year, activity is progressing by 12,5% ​​compared to 2024, returning to a level comparable to that observed in 2017.

Regarding prices, the increase remains moderate. It is "without excess" and "corresponds to the level of inflation", observes Loïc Cantin, president of the National Federation of Real Estate (Fnaim).

In Ile-de-France, prices for older housing increased by 0,7% in 2025. Apartments showed an increase of 1,2%, while houses recorded a decline of 0,4%.

In other regions, the increase is slightly stronger, with a rise of 1,2% over the year. Apartments there climbed by 1,7% and houses by 1,0%.

Overall, in 2025, prices increased by 1,5% for apartments and by 0,8% for houses.

"For the first time in three years, activity is stabilizing, which suggests a cautious recovery," commented Elodie Frémont, president of the real estate statistics commission for notaries in Greater Paris. She did, however, qualify this improvement, stating that this "recovery is slight" and noting that sales volume remains "historically low" in the Île-de-France region.

After the euphoria that followed the post-Covid period, the sharp rise in interest rates in 2022 abruptly slowed down the acquisition plans of many households, causing a marked slowdown in the real estate market, both in new and old properties.

The stabilization of real estate rates at a level slightly above 3%, combined with falling prices in 2023 and 2024, largely explains the improvement in sales of existing homes in 2025.

Buying food remains difficult for low-income households.

Despite this improvement, some difficulties remain. Charles Marinakis points out that the price surge observed after Covid has not been completely reversed and that interest rates remain higher than before the war in Ukraine. "The French have regained some of their purchasing power in the real estate market, but not all of it," he emphasized.

In this context, access to homeownership, particularly for first-time buyers, remains complex. It often requires recourse to "family gifts or loans," noted Elodie Frémont.

The Notaries of Greater Paris have also published data dedicated to "housing affordability". They indicate that the monthly payment for a 20-year loan increased between 2022 and 2026 by 9,6% for a 65 m³ apartment and by 8,7% for a 100 m³ house in the Ile-de-France region.

They also point out that transactions at a price below 4.000 euros per m³ represented more than 80% of sales in the Île-de-France region until the early 2000s, compared to only 30% since 2006. Conversely, sales above 6.000 euros per m³, formerly marginal, have constituted half of all transactions since 2005. This trend contributes to making homeownership more difficult for low-income households.

The current crisis "mainly affects households with modest resources," confirmed Loïc Cantin. "Only second-time buyers (who are buying their second home, editor's note) or households with more than 50.000 euros in resources can aspire to homeownership," he specified.

For 2026, professionals anticipate relative stability, with a transaction volume of around 950.000 sales and prices trending slightly upwards.

However, the cost of credit could slow this momentum. The Crédit Logement/CSA Observatory warned in January that mortgage rates are expected to rise in 2026 and 2027, approaching 4%.

Finally, regarding the "private landlord status" or "Jeanbrun scheme" intended to encourage rental investment, Charles Marinakis believes that it will need to be strengthened to produce a significant effect on the old real estate market.

Illustrative image of the article via Depositphotos.com.