The French real estate market in 2024 has gone through a prolonged correction phase, with transaction volumes significantly declining and prices trending downward in most segments. Measuring the true extent of these adjustments requires cross-referencing several indicators: number of sales, changes in credit rates, and the impact of the energy performance certificate (DPE) on property values. The available data paints a more nuanced picture than a simple observation of a uniform “crisis.”
Performance gap between old and new: two markets, two speeds
The old and new segments have not experienced the same intensity of correction in 2024, and the structural reasons differ.
In the old segment, sales were below 750,000 transactions in 2024. Other estimates suggested a slightly higher figure, around 771,000. In both cases, the decline is about 11% compared to 2023, which was already down significantly with 869,000 sales against 1.12 million in 2022.
The new segment experienced an even sharper collapse. Sales of new homes had halved during the previous period, and new listings were down by about 40%. The decrease in building permits, around 26%, has amplified the phenomenon by reducing future supply.
To track these developments over the months, real estate news on Live Infos allows for real-time comparison of data from various sources.
| Indicator | Old | New |
|---|---|---|
| Change in transactions (2024 vs 2023) | Decline of about 11% | Decline of about 50% (over the previous period) |
| Price evolution | Average decrease of around 5% | Stabilization or increase due to construction costs |
| Supply dynamics | Stock increasing | Supply contracting (decrease in building permits) |
This table highlights a paradox: new properties, despite a plummeting demand, have not seen their prices decrease in the same proportions. Construction costs and environmental standards have maintained a price floor, creating an increasing gap with the purchasing power of buyers.
Mortgage rates in 2024: the variable that locked the market
Mortgage rates played a decisive role in the contraction of the market. After a continuous rise since 2022, going from about 2.59% to over 4.34% on average over 20 years, households’ borrowing capacity has significantly reduced.
This compression of real estate purchasing power explains a significant part of the decline in transactions. A household that could borrow a certain amount at the beginning of 2022 has seen its capacity decrease by several tens of thousands of euros over two years, with constant income.
However, the end of 2024 marked the beginning of a reversal in rates. Conversely, this decline has not been linear. Available data shows that rates have risen again at certain times in 2025-2026, reminding us that the path to easing is not guaranteed.
Real estate purchasing power: marked geographical disparities
The drop in prices has not compensated everywhere for the rise in rates. In Île-de-France, prices had dropped by about 5.3% with a transaction volume down by 34%. In some medium-sized cities, the price correction has been more moderate, but so has demand.
The net result for buyers therefore heavily depends on location. A buyer in a tight metropolitan area has not regained the same purchasing power as a buyer in a relaxed area, despite sometimes greater absolute price declines.
DPE and energy-inefficient properties: the most underestimated discount factor
Energy regulations have introduced an increasingly clear divide in property valuation. Properties classified as G are not just less attractive: they represent a concrete risk of rental vacancy and depreciation upon resale, significantly more pronounced than for properties classified as F or E.
The Climate and Resilience Law provides for a gradual rental ban schedule for energy-inefficient properties. This regulatory framework has already changed investor behavior, who now incorporate renovation costs into their profitability calculations.
- Properties classified as G suffer a sales discount that properties classified as F do not yet reach, as the rental ban deadline is closer
- The electricity conversion coefficient in the DPE has been lowered from 2.3 to 1.9 as of January 1, 2026
- This mechanical reclassification allows some electrically heated properties to exit the most penalizing categories without renovation
- Rent control, extended to several tight territories, adds an additional constraint on the rental profitability of energy-intensive properties
For a landlord, the question is no longer just whether their property is “sellable” but whether it is “rentable” in the medium term. The DPE has become a criterion of liquidity as much as of valuation.
Real estate prices in France: stabilization or false floor
CSN data indicated an average price drop of about 4% year-on-year in 2023, extended in 2024 with an additional decline of around 5% according to sources. The central question for buyers is whether this correction has reached a floor.
Several signals point to stabilization in the old segment. The pace of decline slowed in the second half of 2024, and the transaction volume, although historically low, has stopped contracting in certain areas.
In contrast, the new market remains structurally blocked. Supply is dwindling due to a lack of new construction, but prices are not falling enough to revive demand. The new segment remains out of sync with the actual solvency of buyers.
What the 2024 data says for the future
The French real estate market at the end of 2024 is characterized by an unfinished adjustment. Prices have corrected, rates are beginning to decline, but the convergence between supply, demand, and borrowing capacity has not yet been achieved. The regulatory variable (DPE, rent control) adds a layer of complexity that price and volume indicators alone do not capture.
The key figure to remember: less than 750,000 transactions in the old segment in 2024, a level not seen in over a decade. Credit rates, the DPE schedule, and the deficit of new construction remain the three variables to watch for 2025.