Real Estate: A Time for Discernment

A Market on the Path to Normalization

The numbers reflect a rebalancing rather than a recovery. After an average decline of 5 to 10% since mid-2023, prices are stabilizing in most major cities. Property values are aligning with household financing capacities, steering the market towards a form of realism.
This phase of « return to normal » is also observed in buyer behavior. Opportunistic investors, lured by speculation, are being replaced by more selective buyers focused on rental profitability, patrimonial value, and energy compliance. « We are moving away from an era of overvaluation fueled by easy money, » notes Grégory Beurrier. « Real estate is becoming a usage-based market again, where value is grounded in tangible criteria."
For investors, this moderation is not bad news. Recent price corrections have restored more coherent entry points, particularly in attractive secondary areas or well-connected medium-sized cities. In a context of stabilized rates, selectivity becomes the key to sustainable returns.

A Generally Preserved Tax Framework

In terms of taxation, the 2026 Budget Bill focuses on continuity. No major reforms are planned for real estate: there are no new incentives for new construction or a revival of the PTZ, which is now refocused on high-demand areas. The government has also dismissed the creation of a private landlord status, which was considered this summer.
However, two targeted amendments were adopted by the finance committee on October 21:
The micro-property tax reduction increased from 30% to 50%, aligning unfurnished rental with the micro-BIC regime of furnished rental.
Deductible depreciations for non-professional furnished rentals could be eliminated to balance tax benefits between the two regimes.
This cautious development is deemed « coherent but worth monitoring closely » by professionals. « The stability of the tax framework is largely preserved, » notes Grégory Beurrier, « but these adjustments serve as a reminder that the legislature seeks a balance between yield and fairness."

Investing in 2025: Keeping a Clear Head

In this calmer climate, wealth investors are returning, but without going overboard. Their strategy is based on three pillars:
The location: economically strong and resilient areas where rental demand remains high.
The quality of the property: a well-designed, energy-efficient property that can be valued over the long term.
The adjusted return: it's better to have a controlled net rate than an illusory promise of capital gain.
"The right time to invest is not when the market is at its lowest, but when it becomes predictable and coherent, » Beurrier reminds us. In other words, the current normalization is not a sign of weakness, but an opportunity to build a sustainable wealth strategy.
In a market that has become rational again, discernment becomes the primary safe haven.