The French Real Estate Market
With its 5500 kilometers of coastlines, its 8 borders, its beaches, mountains, and emblematic countrysides, France is a highly coveted country for real estate purchases. Whether you love skiing or sailing, the city or the countryside, warm or moderate temperatures, there is something for everyone, at all prices. As the world’s top tourist destination, France is highly sought after for second homes, and by retirees in search of a better quality of life, a historic house, or the Mediterranean sun.
In France, the most sought-after properties are:
- Country stone houses (bastide, Provencal farmhouse, longère…)
- Houses and villas with swimming pools
- Mountain chalets
- City apartments
- Seaside properties
- Wine estates
- Habitable castles
Average house price in France per Square Meter
The French real estate market offers a wide variety of properties, at all prices. On average, the price per square meter in France is €3,100, with an average of €10,000 in Paris, €4,800 in Lyon, €3,500 in Marseille, €4,700 in Bordeaux, and €3,500 in Lille. In the provinces, the average price per square meter is €3,200 in Aquitaine (€1,500 in Dordogne), €4,200 in PACA, €2,500 in Normandy, and €2,300 in Alsace.
The most expensive properties are located in Paris and along the Mediterranean coast. At the lower end, some localities display averages around €1,500 per square meter.
Evolution of Real Estate Prices in France
The French real estate market has experienced significant growth in the past three years. Prices have continued to rise, reaching unprecedented levels. However, since the end of 2023, we have seen a stabilization of the market, or even a decrease in prices in some sectors.
The increase in borrowing rates (4% over 20 years on average in February 2024), rising raw material prices, new French laws, particularly regarding thermal sieves, and the economic crisis contribute to the slowing down of the real estate market. Buying in 2024 can be advantageous for buyers who do not need a loan: the exponential rise in rates has caused a drop in real estate prices, making it a good time to invest without a loan!
While the national trend is a decrease, this downturn does not affect all properties! What we call the real estate market is actually a multitude of small markets, divided according to location or type of property, and not all are necessarily impacted by the crisis! With a varied market, a wide diversity of houses, and a reliable and efficient system, France offers an excellent investment opportunity!
While some localities display a very high price per square meter, others are much more profitable and offer very good opportunities, whether for buying a second home, for seasonal rental, or for your future primary residence. Before diving in, it’s important to consider the additional costs when buying a house, such as notary fees, taxes, and maintenance expenses, which can significantly affect your budget.
