Luxury Property Market in France
3rd July 2025
After a year-long pause, the high-end real estate market is regaining momentum.
French buyers are making a strong comeback, and prices remain robust in the most sought-after areas, whether it's in the city, coast or country.
While the general real estate market remains constrained by rising interest rates and tighter credit conditions, the prestige sector is holding up well.
According to the leading estate agents the number of French buyers in the market is substantially up from over a year ago.
This shift is due to the relative decline of foreign buyers, particularly British. Most notable, however, has been the surge in interest by buyers from the US, eager to jump ship since Trump took power.
Patricia Vankeirsbilck, who for over 20 years has run a property search agency for high-end buyers, comments that "It’s a resilient market, due to the low elasticity of supply, the rarity of quality properties, and long-term demand motivated by inheritance projects, portfolio diversification, or optimised secondary residences." She says many of her clients look for a turnkey solution, so she and her team offer a service that includes the full gamut of legal and tax advice, as well as property search.
The lack of pressure to resell and relative protection against inflation enhance the appeal of heritage real estate.
Another notable trend is that high-end sellers are more willing to negotiate. The average negotiation rate now exceeds 7%, with even larger discounts on a typical properties or those in need of significant renovation.
Across the country, demand remains strong for properties with outdoor spaces, scenic views, or architectural charm. In Paris, the Left Bank continues to attract buyers, but areas in the eastern part of the city (Canal Saint-Martin, Belleville, 11th/20th arrondissements) are gaining popularity, especially for lofts and tastefully renovated properties.
In the regions, the southeast remains highly favored (Aix-en-Provence, Cassis, Grimaud), followed by areas known for a "return to the land" such as Dordogne, the Alps, and the Basque Coast.
The entry price remains high, but the average price of a prestige property varies substantially across the country; in some areas of the Southwest good properties can be had for a little as €500,000.
Transaction volumes are stable. The number of high-end property transactions is consistent with 2023, with an increase in properties priced €1m+, driven by buyers who are entrepreneurs or high-income professionals, often seeking a semi-primary residence.
For savvy investors, luxury real estate remains a tangible asset, sometimes transferable through appropriate legal structures, and potentially partially exempt from the property wealth tax if conditions are met. Properties with seasonal rental potential (villas in Provence, chalets in Megève, apartments in Cannes) remain in demand, even though the average gross rental yield is around 2 to 3%. However, as Vankeirsbilck points out: ”It is not the rental performance that drives the purchase, but the value of use and resale.”
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