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The French residential market recovered significantly in 2025 after two difficult years.
According to the Banque de France: a 10.6% increase compared with 2024. The recovery was supported by improving mortgage conditions: new housing-loan production reached €146.7bn, up 33% year-on-year, while the average rate on new mortgages fell to 3.08% in December 2025.
The latest official data, for Q2 2026, show a much more balanced market.
At the same time, transaction volumes continued to recover:
958,000 transactions over the 12 months to June 2026
versus 952,000 at the end of 2025 and only 845,000 at the end of 2024.
Paris is further along in its correction/recovery cycle.
The Paris Notaires report that in Q2 2026, sales in Paris increased approximately 20% year-on-year. However, the comparison is partly distorted by the unusually strong first quarter of 2025, when buyers anticipated increases in transfer taxes.
Across Île-de-France, prices were almost stable:
Prime Paris
The luxury market behaves differently from the mainstream market.
Prime properties in the 6th, 7th, 8th and parts of the 9th and 16th arrondissements can command dramatically higher values than the city average.
Recent market reporting shows exceptional properties in prime neighbourhoods exceeding €25,000/m², while the most prestigious properties can go substantially beyond that level.
La Baule is particularly interesting because it belongs to France’s “premium stations balnéaires” coastal lifestyle markets which have behaved differently from the national residential market.
The FNAIM’s 2025 study of 517 French coastal resorts found an average price of:
€4,578/m²
versus €2,950/m² for metropolitan France. Prices in coastal resorts were therefore around 55% higher than the national average.
More importantly, coastal markets have been relatively resilient.
Recent market reporting places exceptional La Baule properties around €15,000–20,000/m².
The Alpes-Maritimes market was already showing signs of recovery in 2025, while the local property ecosystem continues to report a structural shortage of housing. The local professional observatory expects prices around €5,000/m² across the wider Alpes-Maritimes market, although prime municipalities are vastly more expensive.
The FNAIM coastal study is particularly useful for the luxury end.
Among France’s most expensive coastal markets in 2025:
And these are average market figures for the municipalities, not necessarily the price of exceptional villas.
At the very top of the market, individual transactions can be much higher.
Christie & Co estimates approximately €3 billion of hotel transactions in France in 2025, describing it as a record year for its French hotel team, with 57 completed transactions. Demand was particularly strong in Paris, Nice, Lyon and prime mountain and seaside destinations.
CBRE's quarterly figures tell a similar story: the first quarter alone generated €698 million, while Q3 exceeded €1 billion, making it the second-strongest third quarter ever recorded in France.
Several 2025 transactions illustrate the depth of the market:
Pullman Paris Montparnasse 953 keys - €310 million
Hilton Paris Opéra Paris 268 keys - €240 million
Mandarin Oriental Paris 138 keys - €205 million
Cap Estel Èze / Riviera. 20 keys - €205 million
Banke Hotel Paris. 90 keys €97 million
Hôtel des Grands Voyageurs Paris. 138 keys - €108 million
Cures Marines Trouville. 103 keys - €50 million
Marriott Riviera La Porte de Monaco Cap-d'Ail 186 keys - €85 million
Paris prime retail market is currently highly polarized.
The best luxury high-street locations are performing extremely well, while secondary retail remains much more selective.
In 2025, French retail investment reached approximately €2.8 billion, up around 3% year-on-year, although still below the five-year average.
In H1 2026, retail investment reached approximately €1.8 billion, with activity increasingly concentrated in a small number of exceptional transactions.
The key Paris luxury locations are:
Indicative prime rents in Paris are approximately and minimum:
Champs-Élysées €13,000– 16,000/sqm/month
Avenue Montaigne €13,000– 16,000/sqm/month
Rue / Faubourg Saint-Honoré - €13,000–16,000/sqm/month
Place Vendôme / Rue de la Paix - €8,500–9,500/sqm/month
Rue de Sèvres - €3,000–4,000/sqm/month
Actual rents depend heavily on frontage, floor configuration, lease structure and the precise location.
Avenue Montaigne, 35-37 and Avenue Montaigne, 56
Joint Venture: Kering 40% - Ardian 60%
13 000 sqm
Tenants: Gucci - Saint Laurent and Boucheron
Value: €837 million
Seller: Icade - Buyer: Black Swan Real Estate Capital
Value: €402 million
12 100 sqm - 7 floors
Price/sqm: €33 223
Retail: 4800 sqm
Office: 7300 sqm
Seller: CPSTI / Urssaf - Buyer: MIMCO - Foncière Renaissance
Value: €320 million
4200 sqm
Price/sqm: €76 190
Seller: Group Galleries Lafayette - Buyer: Brookfield Asset Management
Value: €300 million
45 000 sqm
Price/sqm: €6 666/sqm
The BHV continues to operate under its existing commercial structure SGM Société des Grands Magasins
Seller: Hines - Buyer: Pontegadea (Armando Ortega)
Value: €170 million
3 600 sqm
Price/sqm: €47 222
Tenant: Balenciaga
Seller: Particular - Buyer: Barings Real Estate
Value: €50 million
620 sqm
Price/sqm: €80 645
For more details, please contact us.
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