France Real Estate Prices

Price Dynamics and Market Perspectives

The average price of property in France in 2024 is rolling back to its 2023 level. This trend is the most pronounced in large cities, along the Atlantic coast, and in the North. By contrast, the Mediterranean coast, ski stations, and some locations in the North-East have proved to be the least prone to the decline.

So far, it's hard to predict when the market will begin to recover. Most likely, it will promptly react as soon as the national and global economic situation begins to improve. Thousands of international buyers benefit from the current circumstances by purchasing French real estate while it remains affordable. Most of them come from neighboring European states.

To analyze the exact numbers, let's have a look at the capital region of Ile-de-France. It's the most developed part of the country that attracts all types of property buyers, from well-off families to lonely expats who want to study and work in France:

Nearly half of apartments and lofts are smaller than 50 sq.m. Around 25% have a surface of 50 to 120 sq.m. and the area of the remaining 25% exceeds 120 sq.m. As for houses and villas, around 80% of them are larger than 120 sq.m.

Property costs differ significantly from one region to another. Let's have a look at the average France real estate prices per square meter:

Given the difference, the average price per square meter in France doesn't exceed €3,100.

Developed urban areas generate the highest demand among local and foreign property buyers. People want to live in areas where they can have all the necessary infrastructural objects within arm's reach.

The memories of the recent pandemic lockdown are still fresh. That's why many buyers dream of accommodation with a cozy outdoor space. Unfortunately, it's not that easy to find such houses or apartments in well-developed areas because the land is scarce there. In this aspect, the demand far exceeds the supply.

In historical towns and cities, developers are not allowed to modify the surrounding landscapes at their will. They have to preserve the unique looks of the areas and protect the architectural heritage. New apartments and houses in such locations tend to be costly and scarce.

Another major trend is the interest in eco-friendly features. Buyers appreciate buildings made of sustainable materials and equipped with energy-efficient appliances. The authorities strive to support such initiatives at the national and local levels.

Where to Find the Most Affordable Properties

Historically, the most affordable properties tend to be located in the central part of the country. For instance, you can think of Loiret, Cher, Haute Vienne, or Creuse. All these locations have a small population. Some of them are very tranquil. Others boast a developed infrastructure in terms of business, manufacturing, culture, education, and entertainment.

If your aim is to cut down expenses as much as possible, think about Bourges, for example. It can cost you only around €120,000 to buy an 80 sq.m apartment there. In Chateauroux, it's realistic to purchase a house for around €134,000.

The Eastern part of the country remains more affordable than its Western counterpart. For example, in the industrial town of Saint-Etienne, you might be able to get a house for around €231,500. Dijon, Besancon, and Grenoble are among the noteworthy alternatives.

Where to Find the Most Expensive Properties

The real estate prices in France reach their peak in Paris, Provence, and Cote d'Azur. The curious thing is that it's enough to drive only 200 km from Cote d'Azur to Languedoc to find houses and apartments that are twice as cheap, compared to the popular Mediterranean resort, while having identical characteristics.

Here are the average house prices in the most expensive parts of the country:

In the last two decades, their population has been increasing significantly, driving up the demand for accommodation.

The Atlantic coast has become noticeably more expensive in the last decade. La Rochelle, which is full of historic sights, and the famous university town of Poitiers are among the key centers of attraction for property buyers.

In the Northern part of the country, the prices have been surging too. In 2024, their growth slowed down or even stopped — but it will recover for sure. Brittany, Normandy, and Pays de la Loire are among the most promising locations for investments. If we talk about the cities, the real estate price growth is the most pronounced in Caen, Le Harve, and Amiens — the current crisis hasn't affected them too much and they will be likely to perform well in the future.

The North-Western France is becoming increasingly expensive. The average price of a house in Nantes is €364,300. Angers is more affordable — you can get a house for €315,000 there. Anger has a reputation as one of the most peaceful and comfortable cities in France. It's renowned for its sustainable development, academic infrastructure, parks, and gardens.

Where to Find Properties for Rent with the Highest ROI

The demand for rental properties in France is steadily high, especially in large cities. Some people value flexibility and avoid staying in the same place for too long. Others can't afford to purchase real estate. The two major social groups that prefer to rent apartments are students and professionals who work with short-term or mid-term contracts.

The average price range for a two-bedroom apartment for rent in Paris is from €1,800 to €3,600. The average rental yield in the capital is 4.85%. Marseille with its 4.94% is the only city that outperforms Paris in this aspect. Besides, Bordeaux, Lyon, Montpellier, Nantes, Nice, and Toulouse usually deliver a high ROI on rented accommodation. The average indicator across the country is 4.52%.

To ensure a permanent demand for the apartment that you rent out, consider investing in properties in university cities – such as Strasbourg or Montpellier. If they seem too expensive for you, think of a location that for some reason attracts tourists and has an airport. Nimes can serve as an example. It's realistic to buy a house for just €245,000 there, which is almost 40% cheaper than in Montpellier. There is an airport in Nimes, so you'll be able to cater to tourists who come to admire the impressive Roman monuments.

Mortgages

French banks are ready to provide mortgage loans to foreigners. However, in the last couple of years, they have become more selective and demanding to their customers.

Mortgage terms for foreigners tend to be less lucrative than for locals. French clients can expect to get from 70% to 85% of the property's cost as the loan amount. For expats from outside the EU, the maximum available limit is usually lower.

Plus, there can be additional requirements. Clients aged over 60 or those who borrow over €200,000 can be required to pass a medical test. The bank can ask you to insure your capital or deposit a certain sum of money into a designated savings account as collateral. Each case is highly individual.

The mortgage rates have been slowly increasing. In 2024, they are projected to stabilize at the level of 4% to 5%. To get a loan, it's usually necessary to show a property purchase agreement – this document will confirm that you have serious intentions.

Residency Perspectives

The French government doesn't grant residency or citizenship to foreigners in exchange for property investment. However, you may consider obtaining a talent visa. This country welcomes self-employed individuals who can launch viable businesses and pay at least minimum wages for themselves. If you tick these boxes, you might be able to stay in the country for a year — and then, apply for a tech visa.

The tech visa is available in three varieties — for investors, startups, and employees. All of them are valid for up to 4 years and can be renewed. The owners of this document can work in France without obtaining a special permit. Plus, they are allowed to bring their family members with them.

If you legally stay in the country for at least five years, you'll have the right to apply for naturalization. A house or apartment in France can come in handy for those who would like to follow this path.