Market report 2026: trends, prices, and outlook in France

French Real Estate Market 2026: Key Takeaways

• Around 940,000 transactions are expected in 2026, signaling a genuine but still cautious recovery

• Prices are stabilizing, with widening gaps depending on property quality

• Buyers are better informed, more selective, and more patient

• Energy performance (EPC/DPE) has become a major valuation criterion

• The market is increasingly polarized between “move-in ready” properties and those requiring renovation. 

Real Estate Market Trends 2026: A Conditional Recovery

The recovery observed since late 2025 does not mark a return to market euphoria. The French real estate market in 2026 remains shaped by several structural factors.

On one hand, transaction volumes are increasing, supported by a gradual stabilization of the financial environment. On the other hand, buyer behavior has evolved: household savings rates exceeded 18% by mid-2025, reflecting ongoing caution and a greater capacity for buyers to wait.

At the same time, traditional rental investment has sharply declined, with an estimated 40% drop in dedicated lending between 2022 and 2024 significantly reshaping demand structures.

Prices and Energy Performance: EPC Now Directly Impacts Value

In 2026, energy performance is fully integrated into price negotiations.

According to the French Notaries’ Council (High Council of Notaries), an apartment rated G typically suffers an average price discount of around 12% compared to a similar property rated D.

This reality reinforces market polarization:

• renovated, move-in-ready properties retain strong attractiveness

• properties requiring renovation face harsher trade-offs and, in some cases, immediate price discounts

The Real Estate Market 2026 in Paris : Rational and Ultra-Selective

In Paris, market liquidity is gradually returning, but buyer expectations remain extremely high. Approximately 50% of acquisitions in the prestige segment are completed without mortgage financing, limiting the impact of credit conditions on purchasing decisions. Market polarization is clear:

• well-positioned, renovated, and rare properties sell quickly

• overpriced properties or those requiring major renovation become virtually invisible

In Paris, the 2026 real estate market rewards pricing accuracy and advisory quality far more than simple exposure.

The Real Estate Market 2026 Lyon : Stability and Long-Term Value

The Lyon market continues to confirm its role as a structurally solid patrimonial market.

Average prices are around €4,450/m² for apartments and €5,080/m² for houses, with demand primarily driven by primary residence projects.

Investment decisions are long-term oriented, with strong emphasis on location, construction quality, and overall property coherence.

French Riviera Real Estate Market 2026: International Appeal Remains Strong

On the French Riviera, attractiveness remains high, particularly among international buyers.

In Nice, prices range between €5,600 and €6,000/m², while in Saint-Tropez, the median price reaches approximately €12,100/m², illustrating the resilience of the premium segment.

Buyers are taking more time to decide, but remain highly active on properties that meet current standards: views, outdoor space, high-quality renovations, and premium amenities.

What the 2026 Real Estate Market Reveals

Widespread access to real estate data has fundamentally transformed the role of property professionals.

In the 2026 market, added value no longer lies in raw information, but in its interpretation, local contextualization, and the ability to support decision-making with precision.

The success of a real estate project now relies on:

• realistic pricing from the moment of market entry

• deep understanding of local micro-markets

• tailored support aligned with buyers’ evolving expectations

Download the Market Report 2026

To take things further, Engel & Völkers has published its Market Report 2026, a comprehensive and detailed analysis of the dynamics observed in Paris, Lyon, and on the French Riviera.