French Housing Market: light at the end of the tunnel?

The main indicators relating to residential property in France remain depressed. However, some leading indicators point to a coming inflection point in a context of falling interest rates, a resilient labor market, and improved affordability. As of the third quarter of 2024, the residential real estate market in France exhibits remarkable resilience, despite notable disparities among different asset categories. The latest data reveals a positive, albeit varied, dynamic within the sector, suggesting that institutional investors should approach the market with caution and discernment. We expect house prices to rebound into positive territory in Q3 2025, resulting in annual growth rates of -0.3% in 2025 and +2.6% in 2026. This anticipated recovery underscores the potential for renewed interest and investment opportunities in the French residential real estate market .