Our review of the French property market for the first half of 2025 is now available.

This period marks a turning point after several years of turbulence: the gradual fall in interest rates and the stabilisation of construction costs are reshaping the sector’s outlook.

Some observations in the first half of 2025:

•  Inflation, now below pre-COVID levels, has helped to ease the pressure on households and support a slight recovery in transactions. Mortgage lending volumes have rebounded by more than 20% compared to last year, driven by public measures such as the extension of zero-interest loans.
•  However, the property development market remains mixed. New supply remains insufficient to meet structural needs, despite a slight recovery in the number of building permits issued and construction starts. While some players are seeing improved margins thanks to new-generation operations, the majority are still suffering from the dilutive effect of programmes launched in 2024.
•  For property companies, the situation remains more nuanced. Listed companies have seen their rental income stabilise, supported by the indexation of commercial rents and resilient demand for prime assets. However, asset values remain under pressure due to a still high-interest rate environment and increased investor selectivity. The office and retail segments continue to show marked disparities, with a net premium for flexible and low-carbon buildings.