The Real Estate Market in July 2025: A Balanced Recovery
The French real estate market in July 2025 confirms a dynamic of gradual recovery. With price stabilization, attractive interest rates, and strengthened public support schemes like the PTZ, all signs point to favorable conditions for project holders. This summer is a strategic moment to finalize a purchase, sale, or investment under favorable conditions. Contact your Optimhome real estate advisor for guidance and support.
Real Estate Prices in July 2025: Stability and Contrasts
Real estate prices in France are stabilizing, confirming the modest recovery initiated since early 2025. After several quarters of decline, a slight upward trend is now observed in some areas, particularly in Île-de-France, where prices are slowly rising again.
Existing Properties: Stable or Slightly Increasing Property Prices per m²
Across the country, prices per square meter for existing properties show a trend toward stabilization or slight increases. According to notaries, apartment prices have risen slightly by +0.4% to +0.5% between April and July 2025. In Île-de-France, sharper increases are seen: +3.2% for apartments and +2.8% for houses over three months. The average price per m² in Paris is expected to reach €9,750, compared to around €9,530 in Q1, representing a +2.7% increase year-on-year. These adjustments reflect a balance between supply and demand, with a recovery in transactions in major cities like Lyon, Nantes, and Strasbourg, and continued affordable prices in less saturated areas.
New Real Estate Trends: Resilience and Optimism Despite High Prices
The new housing market maintains high prices due to construction costs, environmental standards, and land scarcity. However, demand remains strong, supported by the expanded Zero-Interest Loan (PTZ), high energy performance ratings (DPE A or B), and reduced notary fees. These advantages make new builds more attractive despite often being more expensive than existing homes, offering optimized living comfort and long-term energy efficiency. The 2025 PTZ and other schemes enable many households to purchase a new house or apartment. It’s a good time to take advantage!
Transaction Volumes: A Market Gaining Momentum in July 2025
The French property market confirms its recovery this summer. After a 2024 marked by a slowdown in home sales, particularly for existing homes, transaction volumes are gradually rebounding, giving new momentum to the real estate market.
Sales of Existing Homes: A Noticeable Rebound
Notarial figures show around 803,000 transactions over the 12 months ending in June 2025, close to levels seen in April 2024. This rebound marks increased demand for housing in Paris, major cities like Lyon and Toulouse, and balanced zones such as Val-de-Marne or the French Riviera. The average time to complete a sale in the existing market has shortened—from around 100 days to 80 days—signaling renewed confidence from both buyers and sellers.
A Recovery Driven by Summer Activity
This increase in transaction volume is largely due to seasonal summer trends: individuals take advantage of the summer to carry out real estate projects, whether changing primary residences or making rental investments. Across France, real estate agencies are seeing rising numbers of listings and property visits. The purchasing power of households, bolstered by still-favorable lending conditions, contributes to this revival. Even though prices remain stable, this market shift is accompanied by a return to pre-pandemic transaction volumes, confirming that the recovery is well underway.
Mortgage Rates in July 2025: Confirmed Stability, Still-Favorable Conditions
July 2025 continues a reassuring trend for real estate project holders. After several months of decline followed by a slight adjustment, interest rates have stabilized at still-attractive levels. This situation opens a real window of opportunity for both buyers and sellers in a market regaining balance.
Still Competitive Mortgage Interest Rates
Good news for buyers: mortgage rates remain very accessible in July 2025. Banks continue to offer favorable financing conditions, especially for stable profiles with personal savings and good borrowing capacity. This consistent rate environment allows buyers to secure low-cost financing and confidently pursue their real estate projects.
Here are the average mortgage rates observed in July 2025 by loan duration:
| Period in 2025 | 10 years | 15 years | 20 years | 25 years |
|---|---|---|---|---|
| January | 3.00% | 3.25% | 3.31% | 3.40% |
| February | 2.99% | 3.16% | 3.24% | 3.32% |
| March | 2.80% | 2.90% | 2.89% | 2.99% |
| April | 2.65% | 2.75% | 2.89% | 2.99% |
| May | 2.79% | 2.85% | 2.90% | 3.00% |
| June | 2.74% | 2.85% | 2.95% | 3.05% |
| July | 2.85% | 2.80% | 2.99% | 3.05% |
(Source: CAFPI – 2025 observed rates)
Average rates remain below 3% for most durations, with a slight decrease over 15 years. This lasting stability is a boon for households wanting to carry out their projects without waiting for a hypothetical improvement.
ECB Rate Cut Supports the Real Estate Market This Summer
The economic environment also contributes to this positive trend. The European Central Bank lowered its key interest rate to 2% in June 2025, sending a clear signal in favor of investment. This decision enables banks to keep offering attractive fixed rates, while price stability enhances borrowers’ visibility.
This combination of favorable indicators allows buyers to access competitive interest rates while maintaining strong real estate purchasing power. To maximize the chances of obtaining the best rate, it's advisable to prepare a solid file and get support from an Optimhome advisor. July 2025 is shaping up to be a strategic time to finalize a real estate project under optimal conditions.
Advice for Buyers, Investors, and Sellers This Summer
Now that real estate prices are stable, existing home sales are picking up, and interest rates remain attractive, summer is an ideal time to plan or execute your project. Here's how to maximize success based on your profile.
Buying or Investing in July 2025: Best Practices
To successfully carry out a real estate transaction this summer, here are the key priorities:
Anticipate your purchasing power: calculate your borrowing capacity with an online simulator, including your personal contribution, processing fees, and borrower’s insurance to avoid budget surprises.
Choose the right project: in major cities, demand for single-family homes remains strong, but prices are more reasonable in rural or less competitive areas—it's a good time to spot opportunities.
Follow French real estate market trends: regularly monitor rent indexes, Q1 data, and long-term trends to adjust your property buying strategy.
Take advantage of aids for first-time buyers: as a first-time buyer, you can benefit from the expanded zero-interest loan and advantageous financing conditions, significantly improving your purchasing power.
Consider rental investment: price and rent stability, coupled with decent returns, can make your project highly profitable this summer.
This summer offers a favorable framework for buying or investing—provided you prepare thoroughly and act quickly when opportunities arise. Check out our listings of real estate for sale in France!
Selling in July 2025: Optimize Your Summer Sale
To maximize your property's sale in this dynamic market:
Showcase your property with quality presentation: HD photos, accurate descriptions, professional property valuation… now is the time to stand out.
Set a realistic price: with stabilized real estate prices, a fair price speeds up the sale and strengthens your credibility with buyers.
Take advantage of summer visibility: during summer, buyers are often active; your property can gain more exposure by targeting the right channels.
Work with a real estate network: a local professional’s support helps reduce sale times, especially in major cities.
By following these key steps—careful valuation, presentation, and fair pricing—you give yourself every chance of selling quickly while securing your project in a still-strong market for all types of properties. Contact your Optimhome expert advisor for a professional valuation and optimal property listing!
Economic and Geopolitical Context in July 2025: Stability in France, Caution Internationally
While the French real estate market shows signs of equilibrium in July 2025, the global environment remains marked by persistent geopolitical tensions. This duality calls for caution but does not hinder real estate projects in France, which benefit from a relatively stable national context and supportive government schemes.
Reassuring Economic Stability in France
In France, macroeconomic signals are overall reassuring for households and investors. Inflation continues to decline, and the European Central Bank has cut its key rate to 2% in June 2025. This decision supports easier access to credit, with interest rates remaining low compared to recent years. As a result, borrowing capacity improves slightly, and both primary residence and rental investment projects regain momentum.
In this climate, real estate continues to serve as a safe-haven asset for individuals looking to secure their wealth. Additionally, public schemes such as the new PTZ, expanded energy renovation assistance, and stable property taxation all encourage project completion. Real estate purchasing power is stabilizing, especially in rural areas, mid-sized towns, and metropolises where prices remain manageable.
A Global Geopolitical Context to Watch
Globally, caution remains essential. Tensions in the Middle East, post-election uncertainty in the U.S., and the ongoing war in Ukraine contribute to a climate of geopolitical instability. This affects global financial markets and sometimes causes hesitation among buyers, especially those sensitive to economic fluctuations (e.g., luxury investments, second homes abroad).
Nonetheless, the strength of the French real estate market and national regulatory mechanisms limit the direct impact of these tensions on domestic activity. Real estate professionals are even seeing renewed interest in tangible, stable investments—as long as credit conditions are anticipated properly.
In conclusion, July 2025 presents a mixed picture: while global uncertainties persist, the French real estate market offers a secure and structured environment—ideal for successfully carrying out a real estate project.
The New Zero-Interest Loan (PTZ) 2025: A Key Support Mechanism for Buyers
Relaunched at the beginning of the year and expanded in spring, the 2025 Zero-Interest Loan (PTZ) has become one of the main pillars of public support for homeownership. In July 2025, it allows many households—especially first-time buyers—to realize their real estate projects by significantly reducing the total cost of credit.
Expanded and Market-Adaptive Conditions
The 2025 PTZ can now finance up to 50% of the property’s value, up from 40% previously, in eligible areas. This new scale adapts to regions and property types (new or old with renovation work), based on geographic zones (A, B1, B2, C).
The reform also expanded the number of eligible households through more flexible income ceilings. Households with average incomes, even those without significant savings, can now benefit from this subsidized loan. Borrowing capacity is further supported by the option to defer repayment for up to 15 years, depending on the borrower’s profile.
A Real Asset for Balanced Financing
The PTZ 2025 complements a main fixed-rate mortgage and remains interest-free. By combining a standard mortgage with this cost-free portion, buyers significantly lower their monthly repayments and optimize their debt ratio.
Many banks automatically include the PTZ in their loan offers, streamlining approval and simplifying the process. Through this measure, the government hopes to stimulate property purchases, particularly in mid-sized cities and rural areas, while supporting new housing and renovations of older homes.
In short, the 2025 PTZ is a major driver of the real estate recovery and a valuable opportunity for anyone looking to buy a primary residence in a context of still-attractive mortgage rates.
Conclusion: Key Takeaways for July 2025
Real estate price stabilization: declines are slowing, and some areas like Île-de-France are seeing a price recovery, especially in Paris and major cities.
Recovery in sales of existing homes: sale times are shortening, and transaction volumes are rising nationwide.
Mortgage rates remain stable and attractive: borrowing rates below 3% across most durations make financing easier.
Expanded 2025 PTZ support: up to 50% of property value financed, broader eligibility, possible deferred repayment… a major asset for first-time buyers, especially for new homes.
Stable economic context in France: despite global geopolitical uncertainty, national policies support real estate projects with confidence.
Related Articles:
The Real Estate Market in May 2025: Is It a Good Time to Buy or Sell?
The Real Estate Market in April 2025: Trends and Forecasts
The Real Estate Market in March 2025: Lower Rates and Price Stability!
FAQ: Frequently Asked Questions About the French Real Estate Market in 2025
How is the real estate market performing right now?
The real estate market in July 2025 shows signs of recovery: prices are stabilizing, sales are rising, and mortgage rates remain attractive.
Will real estate prices fall in 2025?
A general price drop seems unlikely. After several months of decline, the market is now stabilizing, with slight increases in some areas.
Will property prices rise in 2025?
Yes, some regions are already seeing moderate price increases, especially in Île-de-France and major cities.
What is the future of the real estate market?
The market is expected to continue stabilizing with a gradual rebound in activity, supported by favorable rates, renewed confidence, and measures like the PTZ 2025.
How do mortgage rates work?
Mortgage rates vary depending on loan duration, borrower profile, and economic conditions. Longer durations usually have higher rates.
When will the real estate market recover?
The recovery has already begun since spring 2025. Summer confirms this trend, driven by low rates, rising demand, and supportive regulations.
How are real estate prices evolving in 2025?
After a period of decline, real estate prices are stabilizing and rising slightly in some areas, notably in Île-de-France.
What is the price per m² by town?
Prices per m² vary widely by town. For a precise estimate, use an online valuation tool or consult a local real estate advisor.
Should we fear another real estate price drop?
Another general price drop seems unlikely. The market has adjusted and now tends toward stabilization, with some localized increases.
What was the real estate market like in 2024?
2024 saw a drop in transactions and prices. It laid the groundwork for the recovery observed in 2025 thanks to improved rates and buying incentives.
What is the current state of the real estate market?
The current market shows positive signs: price stability, renewed sales activity, and still-favorable credit conditions for buyers.
Author
Fabrice DOBROWOLSKI, Network Development Director at Optimhome
"Benefit from my expert advice, based on many years of experience in real estate, to ensure the success of your buying or selling project."
