Why 2025 Is a Strategic Year to Invest in Paris Real Estate
Published by MoveNest Paris | Dec 2024
Estimated reading time: 2 minutes
After two years of tightening credit conditions, the tide is finally shifting. Mortgage rates in France are now trending downward — a relief for both domestic and international buyers.
In late 2023, most buyers were borrowing around 4.5%, but today we’re seeing banks offer 4.2% and even lower in some cases.
If macroeconomic signals hold, rates may dip below 4% by Q1 2025, giving investors up to 20% more borrowing capacity.
One of our clients from the UAE recently increased their purchasing power by €120,000 thanks to a 0.4% drop in interest rates — opening doors to higher-end properties in the 16th arrondissement.
And unlike in some countries, French loans can be renegotiated mid-term. This means you can lock in a deal now — and refinance if rates fall further.
The past two years brought rare price corrections to central cities like Paris, Lyon, and Bordeaux — with declines up to 10% in select neighborhoods.
But that downward pressure was largely driven by borrowing constraints, not a lack of demand. As credit loosens, buyers will return, and so will price momentum — especially in prestigious areas with limited supply.
For serious investors, this is a narrow window where both financing conditions and property prices are favorable — a rare alignment in the Parisian market.
We anticipate a rebound in H1 2025, particularly in arrondissements where price drops were steep but fundamentals remain strong (e.g. 17e, 15e, and western 16e).
2025 will also mark a critical year for regulatory change — especially around the DPE (Diagnostic de Performance Énergétique) energy rating system.
Many small apartments (studios under 30m²) have been flagged with poor energy ratings — not because of real inefficiency, but due to biases in the calculation model.
In response, the French government is preparing a reform to rebalance DPE scoring — potentially improving the classification of thousands of compact units and unlocking their rental eligibility.
For foreign investors focused on rental yield, this could dramatically shift the calculus — particularly for pied-à -terre assets in zones like Paris 10 or 18.
2025 offers a rare alignment:
- Rates falling
- Prices still soft
- Rental rules easing
- International demand recovering
Whether you’re planning a lifestyle purchase, long-term investment, or relocation — now is the time to act.
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