After several months of positive signals, the French real estate market continues its cautious recovery in May 2025. Prices are stabilizing, mortgage rates remain attractive despite a slight uptick, and buyers are returning this spring. However, economic and geopolitical uncertainties from April call for vigilance—and a reminder not to wait too long before making a move. In this article, Optimhome helps you better understand the current dynamics of the real estate sector in May 2025 to buy, sell, or invest under the best conditions.
Real Estate Prices in May 2025: Toward National Stabilization
Following several months of gradual price declines, May 2025 confirms a trend toward stabilization in the French housing market.
In a context of renewed activity and enhanced support for homeownership, price per square meter appears to be holding at more realistic levels, particularly in the resale market. This development benefits both buyers and sellers, who are now operating in a clearer and more balanced market.
Regional disparities, however, remain significant. While some major cities are showing modest price rebounds, other, less competitive areas—especially rural zones or urban outskirts—are still experiencing slight declines.
Resale Market: A Return to Balance Between Supply and Demand
In the resale sector, price adjustments that began in 2024 have brought the market back to a certain balance. In May 2025, square meter prices have generally stabilized, with slight increases seen in dynamic cities such as Lyon, Rennes, and Nantes, driven by strong demand and limited supply.
In Paris, the average price per square meter hovers around €9,500, according to the latest notary data, compared to over €10,000 two years ago. This decrease is making some neighborhoods more accessible for first-time buyers and investors.
In medium-sized cities and rural areas, prices are normalizing or continuing to decline in less well-connected or economically attractive areas.
New Builds: Still Pricey, but With Offsetting Incentives
Unlike the resale market, new home prices remain high in May 2025 due to material costs, strict environmental regulations, and limited buildable land. However, several measures help ease the financial burden for households.
The extension and expansion of the interest-free loan (PTZ) in April 2025 supports demand in the new-build market, especially for first-time buyers. At the same time, the strong energy performance of new homes (RE2020 certification, A or B energy ratings) appeals to buyers looking to manage long-term utility costs.
Thus, despite higher square meter prices compared to older properties, new builds remain competitive in the long term thanks to reduced taxes (lower VAT, partial property tax exemptions) and anticipated energy savings.
Mortgage Rates and Property Affordability in May 2025
After several months of gradually falling interest rates, May 2025 sees a slowdown in this downward trend—or even a slight increase in the best negotiated rates. While average rates are still relatively accessible, this shift reminds borrowers of the importance of securing financing without delay.
Despite this context, household purchasing power remains relatively intact. Strengthened public support combined with stabilized prices enables many households to bring their real estate projects to life under still favorable conditions.
Mortgage Rates: Stable but Under Pressure
Here’s an estimate of mortgage rates in France for May 2025:
| Loan Term | Best Rate | Average Rate | Market Rate |
|---|---|---|---|
| 10 years | 2.79% | 3.10% | 3.48% |
| 15 years | 2.85% | 3.14% | 3.71% |
| 20 years | 2.90% | 3.15% | 3.84% |
| 25 years | 3.00% | 3.24% | 3.98% |
Source: Cafpi
Top-tier borrowers can still secure rates below 3%, but these deals are becoming rarer than last month. This slight increase is driven by a tense financial environment: rising bond yields (10-year OAT), persistent inflation, and ongoing global geopolitical uncertainty.
The European Central Bank’s recent cut in its benchmark rate to 2.25% has yet to fully impact lending conditions. Lenders remain cautious, anticipating possible renewed market volatility, which limits their ability to offer more favorable loans.
Sustained Property Purchasing Power
Despite the economic context, many households still benefit from solid purchasing power. The stabilization of property prices, combined with incentives such as the 2025 PTZ, reduced VAT on new builds, and specific real estate tax breaks, allows many buyers to move forward with their plans under good conditions.
Monthly mortgage payments remain manageable for most households, especially with strong applications (down payment, low debt ratio, good banking history). In addition, energy savings from newer or renovated properties boost medium-term investment potential.
In short, May 2025 remains a favorable time to borrow, though the trend suggests not waiting too long: rates are no longer falling, and upcoming economic indicators call for increased vigilance.
Real Estate Transaction Volume: A Rebound in Activity
As of May 2025, the French real estate market is still in a phase of gradual recovery. Home sales continue to increase after several difficult years.
By the end of February 2025, notaries had recorded around 803,000 sales of existing homes over the previous 12 months—close to the level seen in April 2024. This indicates the real estate sector is gaining strength after the downturn experienced since 2021: transactions are recovering, albeit cautiously, amid the uncertain international climate.
This modest rebound is driven by several factors:
Property prices are stabilizing, giving buyers renewed confidence.
Loan conditions have improved with lower interest rates.
Many French households have resumed their home search.
Real estate professionals are seeing a new increase in listings and signed agreements.
In May 2025, the real estate season is in full swing. Agencies and independent agents report stronger activity, particularly in areas where prices have become more affordable. The spring weather, easier property visits, and still-attractive financing options are encouraging buyers to take action.
That said, this recovery remains fragile. Some buyers are still hesitant, influenced by factors such as a recent increase in notary fees in some departments, still-high prices in certain large cities, or hopes for further rate cuts—though the latter trend is now reversing.
In summary, the real estate market is slowly bouncing back, but the international context from April 2025 may undermine this momentum. If you’re planning to buy or sell, spring 2025 is a good time to act—there’s no guarantee that today’s favorable conditions will last.
That’s why it’s crucial to seek professional guidance and closely monitor price and rate trends in the weeks ahead. Contact your Optimhome real estate advisor to get informed and receive personalized support for your buying or selling project.
Economic and Geopolitical Factors Impacting the Market in May 2025
In May 2025, the French real estate market is navigating an uncertain economic landscape, with several external factors affecting household confidence and real estate decisions.
Persistent Inflation in the Eurozone
Although gradually slowing, inflation continues to affect household purchasing power and daily expenses—factors that impact the willingness and ability to invest in property.ECB Interest Rate Cuts
To stimulate the economy and improve access to credit, the European Central Bank lowered its key interest rate to 2.25% in late April 2025—its seventh cut since June 2024. This move is aimed at reigniting economic activity by making loans more accessible. However, the effects of this policy take time, and banks remain cautious in granting loans.Global Geopolitical Tensions
Recent announcements by Donald Trump regarding new international tariffs have created uncertainty in global markets. These trade tensions are shaking financial stability and causing many buyers to take a wait-and-see approach before committing to a property purchase.
Given this context, spring 2025 is a pivotal period: price stabilization and growing demand could lead to a more balanced market, but much depends on how these economic factors evolve in the coming months.
Should You Buy or Sell Property in May 2025?
With prices stabilizing, favorable mortgage rates, and growing demand, May 2025 presents real opportunities—whether you’re buying, selling, or doing both.
Still, every situation is unique. It’s essential to adopt a strategy tailored to your specific project.
In conclusion: as long as indicators remain positive, it’s better to act than to wait—there’s a risk that conditions may worsen in the near future.
Buying a House, Apartment, or Land in May 2025: Conditions Still Favorable
For buyers, May 2025 is a strategic time to embark on a real estate project. Although interest rates have slightly increased, they remain attractive and allow for borrowing under good conditions—especially for households with strong borrower profiles.
Property prices have stabilized across most regions, reassuring buyers and limiting the risk of overvaluation. In addition, financial aid for home purchases is abundant this year, offering real solutions to reduce the total cost of acquisition and monthly mortgage payments:
The new Zero-Interest Loan (PTZ 2025), now available nationwide and extended to new-build houses
Reduced VAT and notary fees for new properties
Exemption from transfer duties in the case of a real estate purchase via donation
Local government incentives for homeownership
The return of consumer confidence, combined with improved real estate purchasing power, makes spring 2025 a favorable season to finalize a property purchase. It’s best not to wait too long, as economic and geopolitical uncertainty could lead to higher rates and a tightening market in the coming months.
Selling Your Property in May 2025: A Window of Opportunity Not to Miss
For sellers, May is an ideal time to list a property on the market.
On one hand, it's a traditionally active season for real estate, marked by high viewing activity and more purchase decisions.
On the other hand, buyers are back: preliminary sales agreements are on the rise, credit is more accessible, and projects are progressing faster than in previous months.
Even though prices have slightly dropped in some cities, current stabilization works in favor of sellers by consolidating around the real value of properties.
As such, a well-estimated home or apartment, priced correctly, is likely to find a buyer quickly—especially in dynamic or well-connected areas.
Selling now also allows owners to anticipate a potential downturn in the economic climate in summer or fall 2025, which could weigh on demand.
It’s also the perfect time to take full advantage of the quality support offered by your Optimhome advisor, who can help you maximize your property’s appeal—starting with a professional valuation and optimal listing exposure across top property platforms.
Conclusion
In May, do as you please—make your real estate project a reality!
The French property market is stabilizing and gradually regaining momentum—but for how long?
Square meter prices are more reasonable—now is the time to take advantage.
Financing conditions are still favorable, but signs of rising borrowing rates are emerging.
Real opportunities to buy or sell are available and worth seizing.
The uncertain economic environment encourages acting now rather than later.
For a safe and successful real estate journey, get support from an Optimhome advisor.
FAQ – Frequently Asked Questions About the Real Estate Market
Is May 2025 a good time to buy a property?
Yes. Rates remain low and prices have stabilized. May 2025 is a great time to make a purchase, especially as rates are starting to rise.
Will mortgage rates continue to rise in May 2025?
They’ve increased slightly this month but are still attractive. A further rise is possible in the short to medium term.
Will property prices continue to fall in May 2025?
The decline has mostly slowed down, but trends vary depending on the region and city. As of May 2025, real estate prices in France are relatively stable.
Is it a good idea to sell a property in May 2025?
Yes. Demand is picking up, and well-priced properties are selling quickly—especially in spring. Take advantage of the momentum!
Why should I work with an Optimhome advisor?
To benefit from local expertise, accurate property valuation, and personalized guidance every step of the way—from first advice to signing the deal. Don’t hesitate to contact your local Optimhome real estate advisor.
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."
