New real estate: towards the end of the price decline?

Start of a phase of stabilization of new-build prices

After several months of decline, new property prices are beginning to stabilize, or even rise slightly. According to data from the Trouver-un-logement-neuf.com portal, a specialist in new housing in France, the average price of a new three-room apartment has increased by +0,28% in six months, reaching €320.724. This moderate increase, but one that marks a turning point after several quarters of decline. This trend is still accompanied by commercial offers from developers: notary fees waived, for example, but to a lesser extent than in 2024.

For Céline Coletto, spokesperson for Find-un-logement-neuf.com: "We are witnessing a change in dynamics in the new-build market. After a long period of price correction linked to falling demand and the sharp rise in interest rates since February 2022, the first signs of stabilization are appearing. This development is explained in particular by an increasingly constrained supply of new homes. If demand strengthens, pressure on prices could increase in the coming months."

A price recovery that extends across the country

The phenomenon is not limited to a few large cities: 53 cities are recording price increases, compared to 40 that are still showing decreases and only one city, Dijon, perfectly stable at €236.200 for a three-room apartment on average. Among the locations where prices have increased the most, Paris stands out with a spectacular increase of +22,36%, reaching €898.700 for a three-room apartment; but still with strong amplitudes depending on the arrondissement. We are seeing lots starting from €510.000 for a two-bedroom apartment in the 3th arrondissement up to €19 in the 1.790.000th arrondissement, passing through €4 million in the sought-after 1.2th arrondissement.

Other cities are experiencing notable increases, such as Lille (+19,40%), Annecy (+10,82%), Avrillé, in the Angers metropolitan area (+10,30%) and Dinard (+9,75%).

Conversely, some cities continue to see their prices fall. In the niche mountain market, the Alpe d'Huez resort in Isère suffered the biggest correction with a 25,06% drop, followed by Capbreton (-14,77%), Villeurbanne (-14,23%), and Bordeaux (-13,01%).

A market under pressure with a falling supply

While the end of the price decline appears to be confirmed, another worrying trend is the contraction in the supply of new housing. In six months, the number of cities with at least five new housing developments on the market on Trouver-un-logement-neuf.com has dropped from 117 to just 94. This decline could increase pressure on prices, particularly with the return of the zero-interest loan (PTZ) across the country from April 1, 2025.

For Céline Coletto: "Developers have significantly slowed the launch of new projects in recent months, and have even abandoned many operations. Faced with sluggish sales and persistently high construction costs, they have been forced to reduce their land investments and limit the number of properties listed for sale. Today, as the market begins to revive, the supply of new housing may be insufficient to meet demand, which could accelerate price increases in certain areas."

Industry professionals are warning of this situation: real estate development has reduced its workforce by 30% and has therefore lost part of its production capacity; many players have also frozen the purchase of new land. This caution could create a real imbalance between supply and demand if the upward trend continues, particularly with the approach of municipal elections when local authorities will be less inclined to issue building permits.

A ski resort among the most expensive cities

In the ranking of the most expensive cities, if Paris (€898.700) still dominates in this ranking of the most expensive cities, we note the entry of the Isère resort of L'Alpe d'Huez where it costs €750.400 on average to acquire a three-room apartment, followed by cities in the Paris region: the royal city of Yvelines: Saint-Germain-en-Laye (€612.500) and, at the foot of the Grande Arche de la Défense: Puteaux (€597.500). Capbreton in the Landes remains for the second consecutive time in this Top 5.

Conversely, the most affordable locations remain Tourcoing (€184.900 for a 3-room apartment), which regains first place, ahead of Louviers (€193.900) and Bourg-en-Bresse (€195.000). These medium-sized towns still represent opportunities for buyers looking to invest at a lower cost.

Conclusion: an opportunity to seize before a price rebound?

As price stabilization continues, current market conditions offer a final window of opportunity for buyers. With a dwindling inventory of new homes, the entry into force of a new threshold for the RE 2020 environmental regulation on January 1, 2025, and uncertainties surrounding the resumption of production, prices could rise sustainably again in the coming months.

For Céline Coletto: "Buyers who are still undecided should take this new situation into account. 2024 was marked by attractive prices and numerous commercial offers. If the trend continues towards recovery, purchasing conditions are likely to become more restrictive. This may therefore be the right time to finalize a new real estate project before the dynamic reverses."

The strongest changes in the price of new vehicles in France in six months

Methodology : a real-time calculation method The current average price of new real estate in France was calculated on Friday, March 7, 2025 for a new three-room apartment, according to the prices indicated each day by advertisers on the Trouver-un-logement-neuf.com website: on a minimum basis of 5 different new real estate programs for each location, i.e. several dozen new housing prices compared.

Illustrative image of the article via Depositphotos.com.