A landlord who discovers that their G-rated property can no longer be rented out as it stands, or a first-time buyer hesitating to sign because property transfer taxes have just gone up in their département: real estate trends in 2025 are not reflected in price charts alone. They are felt when making a concrete decision, in the face of rules and costs that have changed within just a few months.
Energy performance ratings and rental bans: the filter reshaping the rental market
Since January 1, 2025, properties rated G on the energy performance certificate (DPE) no longer meet the minimum habitability standards in mainland France for new leases, renewals and extensions covered by the rules. In practice, landlords who have not started energy-efficiency renovations face three options: renovate, sell or withdraw the property from the rental market.
This mechanism has a direct impact on available supply. In cities where older housing stock is largely energy-inefficient, properties are leaving the rental market without being replaced. For buyers, this creates an opportunity: discounted properties are coming up for sale as landlords choose to sell rather than fund major renovations.
Following real estate news on Ventes Immo can help you spot these local shifts before they show up in national statistics.
The timeline does not end there. Properties rated F will be affected from 2028. Owners planning ahead are making decisions now, adding to the number of properties listed for sale in some older neighborhoods.
Property transfer taxes and property tax: ownership costs weigh on buying decisions
People often focus on mortgage rates and price per square meter. On the ground, there is a third cost that many prospective buyers underestimate: ownership costs are rising independently of the purchase price.
The 2025 Finance Act authorized départements to temporarily increase certain property transfer taxes, within the limits set by law, for transactions completed between April 1, 2025 and March 31, 2028. In practice, notary fees on a purchase can vary significantly from one transaction to another, depending on the département.
Property tax adds to this burden. Its amount depends on cadastral values and the rate set by the municipality, two factors that can change independently of the real estate market itself. A property bought at a good price in a municipality that raises its property tax could see its net rental yield fall from the very first year.
- Check the département’s property transfer tax rate before signing a preliminary sale agreement, as it can differ from one neighboring département to another.
- Ask for property tax bills from the past two or three years to identify local trends.
- Include these costs in your return calculations, not just the mortgage rate and expected rent.
For households buying a primary residence, this additional tax cost reduces their room to negotiate on price. For investors, it changes the profitability threshold in some mid-sized cities that were previously considered attractive.
Transaction volumes and prices in France: what the first-half figures show
The rolling 12-month volume of existing-home transactions stood at 892,000 as of the end of April 2025, according to the French notaries. The annual change turned positive for the first time since June 2022, at +2.5%. This is a signal, not a boom.
Existing-home prices rose by 0.4% year over year, according to the Notaires de France-Insee index, driven by apartments (+0.7%), while houses posted a more modest increase (+0.3%). The market remains in a consolidation phase: buyers have regained some negotiating power, but are not seeing significant price drops.
The number of sales per 1,000 residents was around 11.8 in early 2025, a low level compared with the past decade. The market is moving, but slowly.
Mortgage lending: real relief, but limited
The European Central Bank has made eight consecutive cuts to its key interest rates since mid-2024. This monetary easing has supported the recovery in housing loans and boosted households’ purchasing power in the property market. However, the scope for further rate cuts on new loans remains limited by the international climate.
The increase in property purchasing power seen in 2024 continued into early 2025, but it does not fully offset rising additional costs, such as property transfer taxes and energy-efficiency renovations. Buyers comparing their borrowing capacity with 2023 will see an improvement; those who factor in all expenses will find the benefit more modest.
Building permits and construction starts: anticipating supply constraints
Monthly SDES data on housing permits and construction starts reveal a persistent gap between demand and new housing production. Construction appears to be slowing for the long term, which will inevitably put pressure on supply in areas where the population continues to grow.
This point is often missing from analyses focused on prices and interest rates. Yet reviewing permit statistics at the département or municipal level provides a leading indicator:
- An area where permits have fallen for several quarters will see its supply of new homes dwindle, shifting demand toward existing properties.
- A municipality that maintains a steady pace of construction starts gives buyers more choice and limits upward pressure on prices.
- SDES preliminary estimates are subject to revision, but the trend over six to twelve months remains a reliable indicator of local market dynamics.
Monitoring building permits helps identify supply constraints before they show up in prices. Few individual buyers do this, but it is common practice among professionals weighing opportunities across different areas.
The 2025 real estate market is about more than interest rates or average prices. DPE regulations, higher property transfer taxes in some départements and the slowdown in new construction are creating very different conditions from one city to another. Every buying or investment decision benefits from being tailored to local conditions, combining price data with ownership costs and supply trends in the area concerned.
