Real estate market: a difficult first half, an even more worrying second half

Real estate transactions declined in the first half of 2026

The main real estate networks report an overall negative assessment of activity in the first six months of the year.

The Orpi network recorded a 0,7% decrease in the number of transactions in the existing housing market compared to the first half of 2025. The decline reached 2,3% at Laforêt and 7% at Foncia, while Century 21 showed a stable sales volume over a year.

Regarding prices, Laforêt observes a 1,8% decrease in the price per cubic meter. Foncia and Century 21, for their part, report prices that are generally stable over the past year.

The conflict in the Middle East is hindering the recovery of the real estate market

According to professionals, the first months of the year suggested an improvement in the economic situation.

"We saw the planets aligning with interest rates stabilizing," said Charles Marinakis, president of Century 21.

This momentum was, however, interrupted by the economic consequences of the conflict in the Middle East. Rising energy prices fueled fears of a return of inflation and a rise in interest rates, prompting many buyers to postpone their property projects.

According to Laforêt, many French people have therefore "postponed their real estate projects, sometimes by a few weeks, sometimes longer."

A gradual decline in real estate activity

The situation deteriorated significantly over the course of the semester. At Foncia, the months of May and June reached an "unprecedented" level, with transactions down 15% year-on-year, according to Jordan Frarier, president of Foncia transaction, development and rental.

The network also notes an 11% increase in cancellations of preliminary sales agreements. "Some are changing their minds," while others are no longer able to obtain mortgage financing.

According to Guillaume Martinaud, president of the Orpi network: "Maintaining prices and financing remain essential conditions for a genuine market recovery," while calling on banks "to enable French people to realize their purchase plans."

First-time buyers are still supporting the market

According to Charles Marinakis, the market now relies primarily on households making their first real estate purchase through a loan.

First-time buyers are "making the market," while second-time buyers, who sell one property to acquire another, are now "hindered" by interest rates that are still higher than in previous years.

The president of Century 21 anticipates that the number of sales "will plunge in the second half of the year" and will remain on a downward trend "if prices do not decrease and rates do not fall".

The rental market continues to face a housing shortage

Meanwhile, the rental market continues to suffer from a lack of supply.

At Foncia, the turnover rate of managed properties has fallen by 2,5%, while the number of tenant departures has decreased by 7% year-on-year. This low mobility contributes to maintaining pressure on the rental market and further complicates access to housing in many areas.

Illustrative image of the article via Depositphotos.com.