The real estate market in France in 2024 recorded its lowest transaction volume in nearly a decade. With approximately 775,000 signed deeds according to the National Real Estate Federation, representing a decrease of about 12% year-on-year, the year marks a turning point. However, behind this overall decline, dynamics vary significantly depending on the type of property, location, and buyer profile.
Real Estate Credit in 2024: The Invisible Filter of Down Payment and Remaining Living Expenses
Most annual reports focus on interest rate levels. However, this is no longer the only barrier. Since the summer of 2024, several banking institutions have tightened their internal requirements, well beyond the regulatory framework set by the HCSF (maximum debt ratio of 35%, 25-year term).
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The change concerns qualitative criteria: increased minimum down payment for profiles deemed risky (fixed-term contracts, freelancers, young households) and stricter calculations of remaining living expenses. A borrower who meets the debt ceiling can now be denied a loan if their remaining living expenses after charges do not meet the bank’s internal standards.
This phenomenon primarily affects first-time buyers. Even with stabilized rates at the end of the year, access to credit remains constrained by these qualitative filters. To keep up with real estate news on Bulle Immobilière, these banking adjustments represent an often underestimated angle of analysis in traditional market reports.
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Property Prices and Sales Volume: Comparative Table by Segment
The decline in prices has not been uniform. City-center apartments in major metropolitan areas and houses in suburban areas have not followed the same trajectory. The table below summarizes the trends observed in the main segments of the old market in 2024.
| Segment | Price Trend in 2024 | Change in Sale Times |
|---|---|---|
| Apartments – major metropolitan areas | Moderate decline, stabilization at year-end | Reduction in times for well-located properties |
| Houses – suburban areas | More pronounced decline than in city centers | Extended times, abundant supply |
| Renovated properties (DPE A-C) | Price resistance, sometimes slight increase | Faster sales than average |
| Energy-inefficient properties (DPE F-G) | Increased discount due to regulations | Very long times, strong negotiations |
The most revealing line concerns the gap between renovated properties and energy-inefficient ones. The DPE has become a full-fledged price criterion, rather than just an informative indicator. Buyers now incorporate the cost of energy renovation into their purchase offers, which mechanically deepens the discount on properties classified as F or G.
Signals of Localized Recovery at Year-End
In several major metropolitan areas where the correction was marked in 2023-2024, sale times have begun to shorten for well-located family apartments. This signal, still fragile, does not concern the entire territory. It reflects a selective return of buyers to properties perceived as properly valued after the downturn.
New Real Estate and Energy Regulations: Two Simultaneous Pressures
The new housing market faced a supply crisis in 2024. The construction of new housing declined, with a significant drop in starts. Several factors are at play:
- The rise in construction costs, making projects less profitable for developers, especially in tight areas where land remains expensive
- The tightening of environmental standards (RE2020), which increases construction budgets without always allowing for compensating sale prices
- The scheduled end of the Pinel scheme, which has reduced the attractiveness of rental investment in new properties for individuals
This contraction in new supply has an indirect effect on the old market: buyers are turning to the existing stock, which maintains some pressure on renovated properties that meet current standards.
Energy-inefficient Properties: A Two-Speed Market
The strengthened energy regulations in 2024 have accentuated market segmentation. Properties classified as G are gradually being banned from rental, and those classified as F will follow. For landlords, the question is no longer whether to renovate, but whether the cost of renovation remains bearable compared to the property’s value.
Energy-consuming properties suffer a double penalty: discount at sale and loss of rental income. In medium-sized cities, some owners prefer to sell at a loss rather than undertake renovations with uncertain returns on investment.
Real Estate Climate in France 2024: What the Overall Figures Mask
The 12% decline in transactions year-on-year presents a homogeneous picture that does not reflect the reality on the ground. Three disparities deserve to be highlighted.
The first concerns geography. Cities where structural demand remains strong (employment, transport, universities) have fared better than rural areas or small towns in demographic decline. The price gap between attractive metropolitan areas and neglected territories has widened.
The second pertains to the profile of buyers. Households with significant down payments and permanent contracts have maintained near-normal access to credit. First-time buyers without significant savings, on the other hand, have been largely excluded from the market, not by rates, but by the aforementioned lending conditions.
The third touches on the nature of properties. An apartment with a good DPE in a sought-after neighborhood sells in times close to those before the crisis. A poorly insulated house on the outskirts can remain for several months without a serious offer.
The year 2024 has not been one of collapse, but rather one of accelerated sorting between strong segments and weakened segments. The aggregated data masks this polarization, which is likely the most structuring trend for the years to come.