Property Tax: The Cities Still Resisting Fiscal Pressure

Local taxes have never weighed so heavily on property owners. According to the UNPI, property taxes increased by 37.3% between 2014 and 2024, which is twice the rate of inflation. In some municipalities, the increase is dramatic: Paris by 87.9%, Marseille by 55%, Strasbourg by 49%. This surge is due to both the reassessment of cadastral values and local decisions, often tied to the financial needs of communities.

This trend might suggest that the most taxed areas would automatically lose their real estate dynamism. However, the analysis conducted by Maslow.immo challenges this notion. Using a new tool, the Tax Attractiveness Index (IAF), the study shows that there is no simple correlation between rising taxes and weakening real estate markets.

The IAF is based on two key variables:
– the average annual growth rate (AAGR) of the number of real estate transactions (source DVF 2014–2024);
– the change in property tax rate (source UNPI).

Weighting gives 60% to real estate dynamism and 40% to inversed fiscal pressure, to reflect a region's ability to remain attractive despite tax increases. The index, ranging from 0 to 100, does not measure an absolute level of taxation but an overall balance.

And the results are surprising.

Leading the way is Massy (IAF 100), demonstrating the coexistence of notable taxation with an extremely dynamic real estate market. It is followed by Vénissieux (91.55) and Castelnau-le-Lez (70.99), three municipalities where the balance between demographic growth, transaction flow, and controlled taxation creates favorable conditions for investors.

Maslow.immo emphasizes this point: tax attractiveness is not limited to the level of taxation but to a region's ability to maintain a liquid and resilient market despite a constrained environment.

The Dynamism of Mid-Sized Cities

The study also reveals a major trend: small towns and medium-sized cities are becoming increasingly attractive investment opportunities. Their taxation remains under control, while their real estate markets are invigorated by better accessibility, a desirable living environment, and a price/demand balance often more favorable than in large metropolitan areas.

A ranking per capita confirms this trend. The most dynamic towns relative to their population are:
– Déville-lès-Rouen (IAF 100),
– Saint-Laurent-de-la-Salanque (98.67),
– Chevigny-Saint-Sauveur (95.01),
– Lorgues (93.91),
– La Londe-les-Maures (93.54).

These figures show that real estate activity can be proportionally more intense in areas with 10,000 to 12,000 residents than in some metropolitan areas. This dynamism is explained by stable demand, a fluid market, and an available housing supply.

In these towns, property tax does not stifle the market; it coexists with regular transactions, supported by a more balanced price/quality of life ratio.

Conversely, large cities are seeing their attractiveness erode due to the cumulative effect of high prices, heavy taxation, and a slowdown in transactions. Nevertheless, the study notes that even in these pressured markets, liquidity can remain strong—though at the cost of often reduced rental yields.

The IAF indicates that taxation alone does not explain a territory's attractiveness, but it contributes to shaping a new map of potential areas, emphasizes Pierre-Emmanuel Jus, Deputy Director of Maslow.immo. In other words, taxation does not kill real estate, but it profoundly alters investors' search areas.

The conclusion is clear: in an environment of increasing costs, investors are encouraged to rethink their strategies and identify cities where economic dynamism, affordable prices, and fiscal stability still coexist.