Real Estate: The Time for Discernment
The market is awakening, without getting carried away. After three years of crisis, the French real estate market seems to be getting a bit of breathing room. There's no spectacular rebound, but a genuine sigh of relief. Interest rates are stabilizing, prices are no longer falling, and transactions are cautiously picking up. According to FNAIM forecasts, nearly 940,000 sales could be recorded in 2025, representing an 11% increase after two years of significant decline.
A Market on the Path to Normalization
The numbers reflect a rebalancing rather than a recovery. After an average decrease of 5 to 10% since mid-2023, prices are stabilizing in most major cities. Property values are aligning with households' financing capacities, bringing the market back to a form of realism.
This phase of « return to normal » is also evident in buyer behavior. Opportunistic investors, drawn to speculation, are being replaced by more selective buyers focused on rental yield, asset value, and energy compliance. « We are moving away from a logic of overvaluation maintained by easy money, » notes Grégory Beurrier. « Real estate is returning to a market based on utility, where value is grounded in tangible criteria."
For investors, this moderation is not necessarily bad news. Recent price corrections have restored more coherent entry points, especially in attractive secondary areas or well-connected medium-sized cities. In a context of stabilized rates, selectivity becomes the key to sustainable returns.
A Largely Preserved Tax Framework
In terms of taxation, the 2026 Finance Bill is maintaining continuity. No major reforms are planned for real estate: there are no new incentives for new construction, nor a revival of the zero-interest loan, which is now focused on high-demand areas. The government has also dismissed the idea of creating a private landlord status, which was considered this summer.
However, the finance committee adopted two targeted amendments on October 21:
The tax deduction for micro real estate income is increased from 30% to 50%, bringing unfurnished rental properties in line with the micro-BIC regime for furnished rentals.
Deductible depreciation for non-professional furnished rentals may be eliminated to balance the tax advantages between the two systems.
This cautious evolution is deemed « coherent but to be closely monitored » by professionals. « The stability of the fiscal framework is largely preserved, » notes Grégory Beurrier, « but these adjustments remind us that legislators are seeking a balance between yield and fairness."
Investing in 2025: Keep a Level Head
In this calm environment, wealth investors are returning, but with caution. 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 home that can appreciate in value over the long term.
The adjusted yield: a well-controlled net rate is preferable to an illusory promise of capital gain.
"The best time to invest is not at the lowest point, but when the market becomes predictable and coherent, » Beurrier reminds us. In short, 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 once more becomes the primary safe haven.
This content has been automatically translated using artificial intelligence. While we strive for accuracy, some nuances may differ from the original French version.
