T
he French real estate market is undergoing a significant transformation, driven by factors such as declining transactions, rising interest rates, and growing environmental concerns. According to the Notaries of France's 2024 Real Estate Report, the number of transactions has fallen to 750,000 sales, a decrease of 17% compared to 2023. This decline is attributed to households' reduced borrowing capacity due to high interest rates and economic uncertainty.
However, experts suggest that some indicators point towards a gradual stabilization by the end of 2024, with real estate prices moderating and household confidence increasing. If these trends continue, 2025 could mark a new breath for the market. Notaries emphasize that this optimistic scenario relies on cautious assumptions, which opens up opportunities but also poses challenges for sector players.
Households' purchasing power has improved, allowing them to acquire larger properties due to decreased prices and stabilized interest rates. However, this recovery remains fragile and vulnerable to economic imbalances. Buyers' priorities are shifting towards energy-efficient homes, with A and B classified properties increasing their share by 2 points, accounting for 8% of transactions.
Public incentives such as subsidies or tax breaks will play a crucial role in accelerating the transition towards more environmentally friendly real estate. These measures could encourage households to prioritize sustainable housing while contributing to long-term appreciation of their assets. As energy criteria become essential, they may deeply reshape buyers' expectations and sellers' strategies for years to come.
The year 2025 could represent a decisive turning point for the French real estate market, with a more stable economic context and public policies supporting access to building land and the energy transition. However, major challenges remain, including the aging of the real estate stock, regional disparities, and the need to bolster household and investor confidence.
