Business · Companies · 13 hrs ago
French housing market slows as demand falls and borrowing costs rise
France’s housing market is slowing as buyers pull back from purchases of houses and apartments.
Demand fell 22% year on year in the third quarter, according to the Bien’ici observatory, and the decline affects both existing and new homes.
Buyers face mortgage rates averaging 3.5% for a 20-year loan, while banks are becoming more selective about whom they lend to.
Property prices have barely fallen, down 0.8% nationally over the past year, as sellers resist cutting their asking prices and buyers wait for clearer reductions.
Notaries’ forecasts point to prices stabilising in autumn 2026, with differences between regions and types of homes.
The European Central Bank is due to meet on 29 October, and the story says borrowing rates could reach 4% by year-end.
First-time buyers may have options such as interest-free loans or shared land ownership schemes that can reduce purchase costs.
France’s housing market is slowing as demand, visits and home sales fall.
Demand was down 22% year on year in the third quarter, according to the Bien’ici Observatory.
Rising borrowing costs, tighter lending conditions and high, largely stable prices are weighing on activity.
Average mortgage rates were 3.5% for a 20-year loan, excluding insurance, and could reach 4% by year-end.
Economic and social uncertainty is making potential buyers more cautious and reducing their purchasing power.
- Who
- Home buyers, sellers, banks and real estate market participants in France.
- What
- The housing market is slowing, with falling demand and sales, rising borrowing costs and prices that have changed little.
- When
- The report was published on October 24, 2026; demand fell in the third quarter.
- Where
- France, including the national market, Île-de-France and the provinces.
- Why
- Higher interest rates, tighter credit conditions, high prices and economic and social uncertainty are holding back buyers.
Home sellers
Potential buyers
Pricing
Home sellers
Sellers are reluctant to lower their asking prices.
Potential buyers
Buyers are waiting for clear signs that prices will fall.
The European Central Bank raised rates, according to franceinfo.
The European Central Bank raised rates again, and eurozone inflation was 3.8%.
Housing demand fell 22% year on year, according to the Bien’ici Observatory.
franceinfo published its report on the slowing housing market.
The European Central Bank was due to meet.
Interest rates for individuals were expected to reach 4%.
- Demand
- Down 22% year on year in the third quarter
- Average mortgage rate
- 3.5% for 20 years, excluding insurance
- National home prices
- Down 0.8% year on year
- Eurozone inflation
- 3.8% in September
- Expected mortgage rates
- Could reach 4% by the end of 2026
What people are saying
a stabilisation of prices in autumn 2026