The French real estate market went through a pivotal year in 2024. After two years of significant declines in sales volumes and a price correction that began in 2023, the signals sent by the last months of 2024 paint a more nuanced picture than a simple crisis observation. Understanding these trends allows for a better reading of what is at stake today for both buyers and sellers.
Energy performance of housing: the criterion that reshuffles the real estate market
You may have noticed that some older apartments remain on the market for months, while others sell quickly? In 2024, one factor took a decisive role in the speed of sales: the energy rating of the property (DPE).
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Specifically, a property rated A or B sells faster and at a higher price than a property rated F or G. This price difference between two comparable properties, known as the “green premium,” has intensified throughout the year. Buyers are now factoring in the cost of renovation work into their offers, which mechanically drives down the prices of energy-inefficient homes.
To track these developments over the months, it is useful to discover Actu Immobilier online to cross-reference price data with energy performance by geographic area.
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This phenomenon has a direct consequence: the liquidity of a property depends as much on its DPE as on its location. A well-rated apartment in a medium-sized city can sell faster than an energy-hungry property in a sought-after neighborhood. This reversal of hierarchy was still marginal in 2022.
Decline in real estate prices in 2024: an uneven correction across regions
Prices for older properties continued to decline in 2024, but at an increasingly slow pace. At the beginning of the year, the annual decline was still significant. By the end of 2024, this decline had noticeably softened.
The provinces showed signs of recovery earlier than Île-de-France. Apartment prices began to rise again in nearly half of French cities starting in the second half of 2024. This recovery does not affect all segments: individual houses in rural areas continue to see their prices stagnate.
Strong disparities between metropolitan areas
Not all major cities are following the same trajectory. Some provincial metropolises have seen their prices stabilize, or even slightly increase, driven by strong local demand. Others, particularly in the southwest, have experienced more pronounced declines in transactions (with some areas showing sales drops between minus 18% and minus 30%).
The price correction has not been uniform across France. Areas where the supply of new housing remains low are holding up better, as buyers default to older properties.
Real estate transactions in France: the low of 2024 and the first signs of recovery
The volume of transactions reached a low point in 2024 after three consecutive years of decline. According to FNAIM, the market recorded about 775,000 sales in the older segment, representing a decrease of around 36% compared to the peak in 2021.
To understand this figure, it should be broken down into two parts:
- The first half of 2024 continued the negative trend of 2023, with sales volumes still declining and buyers hesitant due to credit conditions
- The second half marked a plateau, with a stabilization in the number of signed agreements, hinting at the beginning of a recovery
- The number of signed agreements for the entirety of 2024 remained nearly identical to that of 2023, indicating that the decline was halted without a strong rebound
This two-part pattern explains why annual reports may seem contradictory depending on whether they emphasize the overall volume or the trend of the second half.
Mortgage rates and borrowing capacity: what has changed for buyers
The rapid rise in interest rates between 2022 and early 2024 was the main barrier to purchasing. It significantly reduced households’ borrowing capacity: at the same monthly payment, a buyer could borrow much less than in 2021.
By the end of 2024, a gradual easing of rates began to emerge. This decrease in rates restores purchasing power to households and partly explains the uptick observed in sales agreements in the last quarter.
Why this easing changes the game
When rates drop, even modestly, the effect on a buyer’s budget is immediate. For a twenty-year loan, each percentage point decrease represents several tens of thousands of euros in additional borrowing capacity. First-time buyers, who have been excluded from the market for two years, are the first to benefit.
This window of easing, combined with prices still declining in many areas, creates a favorable adjustment period for purchasing. Sellers, however, must accept that sale prices will not return to 2021 levels in the short term.
Foreign investors and high-end real estate: a discreet but real return
A less visible trend in public reports concerns the gradual return of foreign investors to the high-end residential market in Paris and a few major metropolitan areas. After a withdrawal in 2022-2023 due to macroeconomic uncertainty, these buyers are returning to well-located properties with high energy performance.
This “prime” segment operates as a market apart. Prices here hold up better than the average, and sales times remain short for properties that tick all the boxes (location, condition, DPE). This phenomenon contributes to widening price gaps between high-end and the rest of the market.
The French real estate market at the end of 2024 can thus be read on several levels: a timid recovery in volumes, a slowing price correction, and micro-markets evolving according to their own logic. The coming months will reveal whether the plateau reached in the second half of 2024 marks the beginning of a true recovery cycle or simply a pause before further adjustments.