Is it a Good Time to Buy Property in France? A 2025 Investor’s Guide

France has long been a favourite among property investors for its stable economy, world-renowned lifestyle, and diverse regional markets. But as we enter mid-2025, market conditions, interest rates, and local dynamics are shifting—so what does that mean for investors?

We'll share the current market trends, economic climate, and property hotspots so you can learn whether now is the right time to buy property in France.

Why France Remains a Top Choice for Property Investors

Before diving into timing, it’s worth understanding why France continues to appeal to both seasoned and first-time investors:

• Stable legal system protecting property rights

• Robust rental demand, particularly in cities like Paris, Lyon, and Bordeaux

• Diverse markets, from coastal holiday homes to city apartments and rural retreats

• Attractive mortgage options for residents and non-residents alike

Whether you're seeking capital growth, rental yield, or a lifestyle investment, France offers multiple entry points.

What’s Happening in the French Property Market in 2025?

1. Interest Rates Are Stabilising

After a period of tightening by the European Central Bank, interest rates in 2025 are stabilising. This is good news for buyers. Mortgage rates are still higher than pre-2022 levels but are expected to remain steady or slightly decrease over the next 12 months. Fixed-rate mortgages remain the norm in France, offering long-term predictability.

2. Cooling Prices in Key Regions

After a pandemic-driven price surge, prices have cooled in several hotspots:

• Paris has seen modest corrections, opening up opportunities for value-focused investors.

• The French Riviera remains competitive, but price growth has slowed.

• Rural areas and small towns are experiencing a rebalancing post-remote-work boom.

This cooling trend could present a window of opportunity for those ready to negotiate.

3. Strong Rental Demand Persists

France’s rental market is buoyant—especially in university towns and tourism hubs. In cities like Toulouse, Nantes, and Montpellier, demand for long-term rentals exceeds supply. Holiday lets remain profitable in tourist-heavy areas, though new regulations mean short-term rental investors need to do their due diligence.

Is Now a Good Time to Buy Property in France?

Yes—if you’re strategic. Here's why:

• Buyers have more negotiating power than in the peak years of 2021–2022.

• Inventory levels are higher, giving you more choice.

• The euro remains relatively weak, making French property more affordable for USD or GBP buyers.

• Government incentives (e.g. eco-renovation grants) can offset improvement costs for older properties.
  

But timing alone isn’t enough. Success depends on where and how you invest.

Best Places to Invest in France in 2025

Location	Why Invest
Lyon	Strong local economy, student population, and transport links
Bordeaux	Wine tourism, tech sector, high-speed train to Paris
Montpellier	Affordable property, high rental yields, youthful demographic
Provence	Holiday home appeal with potential for premium rentals
Nantes	Emerging city with cultural appeal and strong infrastructure

Tips for Property Investors Entering the French Market

1. Understand local laws and taxes: France has strict tenant protections and a unique tax system—get professional advice.

2. Consider working with a bilingual agent: This helps with paperwork, negotiations, and avoiding common pitfalls.

3. Get mortgage pre-approval early: French banks take time to process applications, especially for non-residents.

4. Factor in renovation costs: Many rural and historic homes need updates to meet energy standards.
   

Should You Buy Property in France in 2025?

So, is it a good time to buy property in France? For the informed and strategic investor, yes. With market conditions shifting in favour of buyers, rental demand holding strong, and long-term fundamentals intact, 2025 presents a compelling entry point into the French property market.

Whether you're dreaming of a Parisian pied-à-terre, a Provençal villa, or a rental flat in a vibrant city, France offers both lifestyle and investment potential. The key is to act with clarity, expert advice, and a clear investment strategy.

Ready to Start your French Property Journey?

If you want to explore investment properties in France, we can help you. APW Group was founded by expats, for expats; building upon over 30 years of experience in property and fixed income investments.

Our team brings a wealth of experience in the global property market, guiding you through everything from discovering the perfect home to securing visas and navigating local laws with confidence. We’ve helped over 6,000 expats progress their property portfolio in cities all over the world, from Spain and Portugal to Bali and Phuket.

Looking for your entry point into the French market? Get in touch today.