The French property market has had a bumpy ride in 2024 with high interest rates and tightened lending criteria making financing more difficult for buyers, significantly slowing market activity. As anyone who has been searching for property in southwest France over the last year will know, there has been a distinct lack of good properties for sale. Sellers (who are usually also buyers) have mainly decided to stay put and wait for an improvement in the financial climate. There is, however, growing optimism for 2025 from both agents and the finance industry that things are starting to move again. So, if you are thinking about buying your dream home in France in 2025, here is a quick look at the current property market and what might come next.
What happened in 2024?
This year was tough for both buyers and sellers. High interest rates and stricter lending rules made it harder for many people to get a mortgage. As a result, house sales dropped, with fewer than 800,000 transactions, compared to over a million just a couple of years ago.
Prices have dipped slightly—around 1.3% nationally—but it depends on where you look. Paris, for example, saw sharper declines, with prices falling nearly 5% year-on-year. Rural areas and tourist hotspots, on the other hand, held up better with much of this region of southwest France seeing small price increases. Cash buyers, especially from abroad, have had the upper hand this year since they don’t rely on loans.
What can we expect in 2025?
Things are looking positive for the property market next year. Here’s why:
• Better mortgage conditions
Interest rates are expected to drop below 3% by spring, making it easier for people to borrow money to buy a home. The government is also likely to expand schemes such as zero-interest loans for first-time buyers.
• Prices stabilising
Experts believe that French property prices will start climbing again in 2025. A minimum 2% rise is predicted, especially in the countryside.
• More buyers returning
With easier financing and improved economic confidence, buyer activity is expected to pick up. This should also bring transaction numbers closer to the pre-slump levels.
Spotlight on the property market in Southwest France in 2025
The property market in Southwest France is expected to perform well in 2025 for several reasons:
Lifestyle appeal
The southwest boasts a unique blend of beautiful countryside, historic villages, vibrant towns and a laid-back lifestyle. The region continues to attract French families relocating from the city, retirees, second-home buyers, and expatriates looking for a better quality of life. Property is also still very affordable.
Rising demand for rural living
Since the covid pandemic, there has been a growing trend towards rural living, driven by demand for space, home working and a higher quality environment, particularly for families. The southwest, with its unspoiled countryside but good accessibility, meets current and growing demand.
Resilient property values
Unlike urban hubs which saw sharp falls in property prices in 2024, rural areas in the southwest of France have shown price stability, and even slight price increases. This resilience points to stronger underlying demand and less market volatility in 2025.
International buyer interest
The southwest remains a hotspot for foreign buyers seeking a second home or relocating to France. British and other European buyers have shown consistent interest in the region despite economic uncertainties. Demand from US buyers has increased since the US election, and this looks set to continue in 2025.
What does this mean for you?
If you are hoping to buy a property in France, 2025 could be a great year to secure a deal on that dream home, especially if you are paying in cash. The French property market may have slowed down in 2024, but it is already showing signs of life for next year. While uncertainty remains, particularly in urban areas, improving mortgage conditions and a more favourable economic outlook could reinvigorate demand. Prospective buyers, especially those with cash or access to affordable financing, may find opportunities to secure properties at competitive prices before the anticipated upward cycle begins.
Whether you are considering a permanent home in France, a property investment, or a holiday home, 2025 is looking likely to be a good year to be house hunting in southwest France.
If you need help with your property search, please get in touch: nadia@foothillsofrance.com
Market data and projections from Meilleurs Agents and SeLoger
Predictions of a 2% price increase and improved mortgage conditions, such as expected interest rate reductions below 3%, stem from estate agency projections and analyses of expected ECB monetary policy
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