Old real estate in French cities

Little Worker Key Figures 2024

• Increase in energy renovation services from 8% in 2023 to 13% in 2024, which is partly explained by the ban on G-rated housing in 2025, but not only.
• 5% of projects carried out by Little Worker where state financial aid played a role, due to its inadequacy with certain types of work and owner profiles.
• Increase in the average basket of work costs of 15% for the year 2024.
• A very dynamic year with an 18% increase in business volume between 2023 and 2024.

A market in full transformation

Little Worker had a dynamic year, marked by a 23% growth in its turnover and an acceleration in its activity during the last quarter (+26% in the number of projects). This development is linked to the market's shortage of new properties and the growing interest of buyers in the existing real estate sector. Boosted by MaPrimeRénov' and the zero-interest eco-loan, the sale of thermal sieves is increasingly attractive, considered long-term investments. The green value (+3,4% on average per Little Worker refurbishment project) is also a key asset, stimulating renovation requests. Buyers' needs are also evolving. Buyers are increasingly attentive to creating a sustainable interior that reflects their image. Rather than a passing trend, environmental issues are also becoming entrenched in buyers' habits. A November 2024 study by Little Worker reveals that energy performance is a selection criterion in more than 50% of sales. The new regulations therefore represent an opportunity for the sector to transform towards more responsible and sustainable practices.

A year 2025 focused on existing real estate

Little Worker anticipates a dynamic year, for several reasons:

• Prices are falling across the country to align with market reality.
• Buyers are increasingly turning to existing properties (+32% of transactions between January 2024 and January 2025).
• State financial aid is expanding, particularly with the new zero-interest advance transfer loan.

Analysis by Metropolis

PARIS

Market status

At the start of 2025, the existing real estate market in the Île-de-France region is showing signs of stabilization after a period of fluctuation. Prices, which had experienced a notable decline in 2023 and 2024, appear to be stabilizing, with moderate adjustments depending on the area. This trend suggests a gradual recovery in buyer and investor confidence in the Île-de-France real estate market. The latter are moving towards increasingly high-quality properties, particularly those offering high energy performance. They are increasingly sensitive to environmental issues and are therefore led to favor homes that meet certain energy consumption criteria.

However, the market faces challenges, such as a shortage of rental accommodation, exacerbated by declining supply and rising demand, making access to rental accommodation increasingly difficult.

Market price

Paris remains the French city with the highest prices for existing properties, with an average price estimated at €9.385 in February 2025. It is also one of the cities that is expected to see a very slight price decline in 2024 (-1,4%). Prices vary greatly depending on the arrondissement. For example, the 6th arrondissement has an average price of €15.384/m2, while the 19th arrondissement is at €8.615/m2.

Despite very high prices, the existing real estate sector saw an increase in demand in 2024, with sales rising by 7%, after two consecutive years of sharp declines (4% in 2022 and 16% in 2023). This recovery is partly attributed to the drop in interest rates, which fell from 4,20% in 2023 to 3,37% in December 2024.

Renovation

The average budget for renovation work in the capital remains similar to that of other major cities (€1.500/m²). We are seeing a trend toward energy renovations that allow owners to improve the green value of their property. Purely architectural renovations are not losing momentum, however; there is a strong focus on creating a functional, bright interior that reflects their desires.

Buyer behavior

Energy performance is now a key selection criterion for buyers, often looking for properties that could offer them energy improvement potential. Innovative solutions to improve their DPE label are at the heart of renovation requests. An ecological conscience emerges from their motivations, as does a search for well-being. Indeed, the deployment of teleworking following the Covid-19 crisis has pushed buyers to invest more in homes where some spend the majority of their time. The flexibility of spaces has become a priority, encouraging them to favor spaces adaptable for professional use at home.

Market trends and outlook

Recent government reforms, such as the extension of the zero-interest mortgage until 2027, aim to support homeownership and could stimulate the market. The Paris region's real estate market is projected to continue stabilizing in the coming months. Prices could see moderate adjustments, while initiatives to convert vacant office space into residential units could alleviate the housing shortage and meet growing demand. Public policies promoting energy efficiency and tax incentives should also encourage renovations and transactions in the sector.

However, political instability may have worried some players in the real estate market and there is a need to collectively rethink practices to adapt to this unstable context and environmental issues.

LYON

Market status

Lyon's existing real estate market appears to be catching its breath in recent months. After several years of strong growth, prices have recently stabilized, and even declined slightly in certain neighborhoods such as Gerland and Confluence (-2%). We are seeing a slight increase compared to the beginning of 2024, but much lower than in previous years. Buyers are regaining some room for negotiation but remain choosy in a market where supply is high.

However, the global inflationary context is pushing some to exercise caution in their acquisition projects and to increase their levels of requirements regarding location, quality of the property and energy performance.

Market price

The Lyon market remains in a price range similar to other French metropolises such as Bordeaux or Lille. The average price for existing properties is 5.000 euros/m2, but this does not reflect the reality of a market where prices vary greatly depending on the city's neighborhoods. In a central and historic district such as Vieux Lyon, properties can reach 8.000 euros/m2. Conversely, in more remote neighborhoods, such as Gerland in the south of the city, prices hover around 4.000 euros/m2. These prices do not prevent buyers from investing in the existing property sector for their primary residence or with the aim of resale or rental. Demand has notably surged in the last year (+95%).

Renovation

The average budget for renovation work depends on the scope of the project and the type of property. For a complete renovation, it ranges from 1.000/m² to 2/m², a budget similar to that of other major cities. We are seeing particular interest in older apartments in Haussmannian buildings in the city center and single-family homes in the outlying neighborhoods. Buyers invest in renovations for reasons of comfort and aesthetics, but also for some with resale value in mind.

Buyer behavior

Buyers are gradually gaining a better understanding of the market. Rather than simply delegating the property search, they are investing in research, comparing properties, and negotiating prices. They are very attentive to the quality of construction and have a keen eye for their budget and the feasibility of their project.

The remote working trend is also influencing their expectations. They are interested in properties with outdoor spaces (balconies, terraces, gardens) and are moving toward quiet, well-connected neighborhoods.

Market trends and outlook

The economic and political situation is impacting the Lyon real estate market. Some buyers are cautious in the face of inflation and the recent months of political uncertainty. The shortage of new properties and new environmental regulations are pushing them to raise their standards and take an interest in the existing real estate market.

In the coming months, the latter should tend towards a certain stabilization, with prices remaining generally stable, or even slightly decreasing depending on the neighborhood. Demand will remain present, however, buyers will be increasingly demanding, looking for better-optimized and more durable properties.

BORDEAUX

Market status

Bordeaux's existing real estate market is experiencing a gradual recovery thanks to several months of price declines (-8%), which is stimulating buyer interest, particularly in the city center where properties are most sought-after. The increasing supply of properties for sale in recent months and falling mortgage rates are also promoting the market's recovery. This favorable situation is encouraging buyers to maintain their high standards for property quality and location, even though their budgets are more limited.

However, the city of Bordeaux is experiencing a shortage of rental properties, and rent controls have been slightly increased in recent months. Some sellers are therefore preferring to turn to rental properties.

Market price

With an average price estimated at €4.680/m², Bordeaux remains within the norm for French metropolises. Prices vary, however, depending on the type of property. The average price for an apartment is €2/m², compared to €4.504/m² for a house. Location also plays a key role. Prices can reach €2/m² in the Golden Triangle and €5.376/m² in the Chartrons district, popular for their location in the heart of the city. The more remote and more modern districts of Saint-Jean, Bacalan, and the Right Bank do not exceed €2/m².

Renovation

In the Bordeaux region, aesthetics are the main motivation for buyers to consider renovations, ahead of the search for improved energy performance and property value. First-time buyers, the majority of buyers, are looking for properties that reflect their personality, where they feel comfortable and can build their lives. The average cost ranges from €1.200/m² to €2/m².

Buyer behavior

Buyers appear to be increasingly demanding. Despite budgets often reduced to adapt to the current economic situation, their expectations remain high in terms of property quality, location, and energy performance. They are increasingly sensitive to environmental issues. Renovation projects are on the rise, spurred by government financial aid. However, large-scale projects are limited. Particular attention is paid to the DPE rating as an investment criterion.

Market trends and outlook

The complicated economic climate is impacting buyers' budgets, making them increasingly reluctant to invest in comprehensive renovation projects. Some prefer to postpone their projects in the hope of a recovery or stabilization of the economy. Others are reducing their scope of work to meet their financial constraints.

Despite this complex context, the Bordeaux market is characterized by a stabilization of prices and a gradual recovery in activity, offering interesting opportunities for buyers and investors in the coming months.

Illustrative image of the article via Depositphotos.com.