French Housing Market Faces Historic Decline in Sales and Prices

Political instability and economic uncertainty have driven a 17% drop in real estate transactions in 2024, with hopes for recovery hinging on improved stability in 2025.

• Real estate sales in France fell to 750,000 in 2024, marking a 17% decline from the previous year and the lowest level in a decade.
• Despite falling property prices and lower mortgage rates, buyer hesitation persists due to political and fiscal uncertainties following the dissolution of the National Assembly in June 2024.
• The average purchasing power of French households has increased slightly, with buyers able to afford 3 square meters more than in 2023, yet affordability remains uneven across regions.
• Nice stands out as an exception, with property prices increasing slightly in 2024, driven by wealthy domestic buyers and international demand, making it the second most expensive city in France.
• Experts suggest that a recovery in the housing market depends on a return to political and economic stability, which is anticipated to improve in 2025.

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