The French real estate market went through a pivotal year in 2024, marked by a timid recovery in sales of existing properties and mixed signals regarding prices. For both buyers and investors, understanding what really happened allows for better insight into what lies ahead.
Mortgage Credit and Rates in 2024: What Has Changed for Buyers
Have you noticed that your borrowing capacity has changed in recent months? That’s normal. After a marked increase in credit rates between 2022 and 2023, the year 2024 brought a beginning of relaxation. Banks have gradually revised their pricing grids downward, making some purchasing projects feasible again.
Further reading : Discover the must-have trends and tips for successful online fashion shopping
This decrease in rates has not translated into a return to the conditions of pre-2022. Borrowers have regained some margin, but real estate purchasing power remains below its 2021 level. Banks remain selective about applications, with personal contribution requirements that have not weakened.
To keep up with the latest news on Immobilier Hebdo, it is important to remember that this easing of credit has been the main driver of the recovery in transactions in the second half of 2024.
Recommended read : Discover the benefits of iProf in Versailles!
Prices of Existing Real Estate in France: A Slowdown in Decline
At the beginning of 2024, prices for existing homes were still significantly declining year-on-year. Then the pace of this decline slowed month by month. In concrete terms, the sharp correction observed in 2023 has transformed into a softer landing.
Apartment prices are rising again in nearly half of French cities. This figure, from the LPI-iad Barometer, illustrates the fragmentation of the market well. Some provincial metropolises are already showing increases, while other areas continue to correct.
Paris and Île-de-France: A Special Case
Île-de-France shows a clearer recovery than the provinces in terms of sales volumes. The departments in the region are not evolving at the same pace: some areas close to Paris are capturing demand that had been deferred during the crisis, while the outer suburbs remain more cautious.
Paris intra-muros has seen its prices stabilize after a significant correction. The Paris market is not rising again, but it is no longer declining. For a buyer, this means that the negotiation window remains open, without necessarily widening.
New Real Estate: A Structural Crisis Weighing on Supply
New properties are the major absentee from the recovery. Sales of new homes have plummeted massively since 2022, and 2024 has not reversed the trend. Construction starts remain well below estimated needs, creating sustained pressure on available supply.
Why does this situation persist? Several factors are at play:
- Construction costs have risen due to inflation in materials and labor, making projects less profitable for developers.
- Building permits have sharply declined, indicating that projects are struggling to get off the ground due to regulatory and financial constraints.
- New home buyers, often first-time buyers, have been the most affected by rising rates, which has reduced solvent demand.
This shortage of new homes fuels pressure on the existing market, where an increasing share of demand is being redirected. This creates a cycle that contributes to slowing the decline in prices in tight areas.
Energy Renovation and DPE: The Other Underlying Trend in 2024
The energy performance diagnosis (DPE) has become a full-fledged pricing criterion. A property rated F or G is negotiated at a significant discount compared to an equivalent property with a better rating. Buyers now factor in the cost of renovation work in their purchase offers.
This evolution is not only related to the market: it stems from the gradual bans on renting out energy-inefficient properties. A landlord whose property is rated G can no longer sign a new lease without renovations. The DPE directly influences the value of a property both for purchase and rental.
A Lever for Savvy Investors
Buying a poorly rated property, renovating it, and then renting it out or reselling it with a better DPE: this strategy is increasingly attracting investors. It requires accurately assessing the real cost of renovations and checking technical feasibility before committing.
Public aids (notably MaPrimeRénov’) remain available, but their access conditions are regularly changing. Checking the applicable schemes at the time of purchase helps avoid unpleasant surprises.
Real Estate Trends 2024: Key Takeaways for the Future
The year 2024 laid the groundwork for a stabilization of the French real estate market, without marking a true rebound. Data from the Notaires de France in the fourth quarter of 2025 confirms that the market regained a stabilization zone for transactions at the beginning of 2026, but without a strong rebound in prices.
One element deserves attention: credit rates are no longer in continuous decline in 2026. A slight increase was observed at the beginning of the year, which could slow the recovery dynamic if it continues.
The market remains highly segmented. Disparities are widening between:
- Apartments and houses, which do not evolve at the same pace depending on the territories.
- Tight areas (major cities, coastal regions) and rural or suburban sectors where supply exceeds demand.
- Well-rated properties according to the DPE and energy-inefficient properties, whose discounts are increasing quarter after quarter.
Buying in 2024 required analyzing each micro-market rather than relying on a national trend. This reality has not changed since. Averages mask disparities that make all the difference between a good investment and a poorly calibrated purchase.