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Real estate alert: prices are going to rise in the coming months in Paris!

undefined undefined 17 février 2025 undefined 12h00

undefined undefined 19 février 2025 undefined 15h50

The Editor

© Salomé Rateau

For the past few years now, the real estate market has been experiencing a steady decline, with a total price drop of about 10% since the summer of 2020 (thanks to Covid). However, since the beginning of 2025, the trend seems to be unfortunately reversing, suggesting a possible increase in prices in the coming months.

We thought that happiness  and good news could last forever, but maybe not after all. For the first time in nearly 5 years, this January 2025, Parisian real estate prices were on the rise. A still fairly minimal increase (+0.7% over three months, +0.5% over a year), which may signify a turning point in the market and a return to much less attractive prices.


A surge in activity

In recent months, we've seen a significant return of buyers to the market. And it makes sense, especially since interest rates from banks are starting to drop considerably, settling around 3.5% after peaks.4 and a little bit more these last few years. A favorable moment for credit, which mainly motivates first-time buyers, without having to sell to make up for a purchase.

What does this look like on the ground? Various agents are noticing a surge in calls and visit requests, and especially a greater number of financially comfortable buyers who negotiate less on the prices of their future homes. If just a few months ago, experts mentioned negotiations of 5 to 10%, today we're looking at negotiations between 3 and 6%. We're also seeing transactions happening much more quickly, a clear sign of Parisians' interest! But of course, when there's a rise in demand, it means a rise in prices…


A Relative Increase

However, don't panic if you're on the hunt for a cozy little apartment to transform; the situation isn't catastrophic either. While prices are noticeably rising, the various agents are talking...

more of a price stagnation than an end to the decline. Similarly, this small change is just an average and is far from applying to all types of housing. While sellers of new and completely renovated properties will be lowering their prices less, the others have not changed their strategy.

Likewise, this rise in prices mainly affects the cheapest districts in the capital, and if the situation continues over the next few months, we would see a reduction in the disparities between the different neighborhoods in Paris, rather than a real explosion of the budget across the city. Whatever happens, however, don’t wait too long; with prices still quite affordable and interest rates decreasing, now is the time to invest!