The French real estate market went through a pivotal year in 2024. After two years of declining sales volumes and a price correction that began in 2023, several signals shifted in the second half: a gradual decrease in credit rates, regulatory adjustments to the energy performance diagnosis (DPE), and new rules regarding short-term rentals. Understanding these movements helps assess whether it’s a good time to buy, sell, or wait.
DPE for small properties and the Le Meur law: two reforms that change the game
Are you looking for a studio or a one-bedroom apartment of less than 40 m²? Since July 1, 2024, the calculation of the energy performance diagnosis has been adjusted for these types of housing. The thresholds have been corrected by the Ministry of Ecological Transition to eliminate a statistical bias. In practical terms, some studios can gain a DPE class without any renovations.
For a buyer, this directly impacts negotiations. A property rated F or G that moves up to E is no longer classified as a thermal sieve. It escapes the gradual ban on rentals and regains market value.
The other significant text is law no. 2024-1039 of November 19, 2024, known as the Le Meur law. It strengthens the powers of municipalities over short-term rentals. In areas subject to a change of use authorization, a DPE is now required for certain new tourist rentals. This measure primarily affects large urban areas and seaside resorts, where seasonal rental pressure is highest.
To keep track of all these regulatory developments over the months, the news on the Le Coin Immobilier website provides an overview of the legal framework and its practical consequences.
Volume of real estate transactions in 2024: where do we really stand?
The number of sales in the existing market continued to decline. According to Fnaim, the market reached about 775,000 transactions for the year, representing a decrease of around 11% compared to 2023 and a contraction of 36% compared to the peak in 2021.
Not all regions have been affected equally. The southwest experienced more pronounced declines, with decreases ranging from 18% to 30% in departments such as Gironde, Lot-et-Garonne, Haute-Garonne, or Pyrénées-Orientales.
One point deserves attention: the second half of 2024 showed a stabilization of volumes after a first half that was still declining. Fnaim sees this as a low plateau, a possible precursor to a recovery. The drop in sales seems to have been halted since the summer of 2024, although it would be premature to speak of a rebound.
Real estate prices and credit rates: the double movement to watch
After a 4% drop in 2023, prices have stabilized in 2024. The correction was more pronounced in Île-de-France (a decline of 5.3% in 2023) than in medium-sized cities. Properties poorly rated on the DPE continued to be negotiated with significant discounts.
On the credit side, the European Central Bank made four successive cuts to its key rates over the year. Mortgage rates have gradually decreased, giving households a bit more borrowing capacity. It’s worth noting that they had nearly doubled between 2022 and the end of 2023, rising from about 2.5% to over 4% over twenty years.
Why hasn’t this drop in rates immediately revived sales? Because confidence remains fragile. Economic uncertainty, rising unemployment, and the political context in France have dampened buying projects, even as financing conditions improved.
New vs. old: two markets, two realities
The new housing market has faced a deeper crisis than the existing market. Sales of new homes had already halved in 2023, accompanied by a drop of more than a quarter in building permits. In 2024, the situation has not visibly improved.
The price gap between new and old remains a major barrier for first-time buyers. The cost of construction, reinforced environmental standards, and the scarcity of land keep new prices at high levels, even as the old market corrects.
Co-ownership and multi-year work plan: what buyers need to check
In 2024, the obligation to develop a multi-year work plan (PPPT) has been extended to co-ownerships of 51 to 200 lots. Are you buying in a co-ownership of this size? Ask about the status of the PPPT.
This document, designed to anticipate renovation work over ten years, has direct consequences on your budget:
- It may foresee significant calls for funds in the coming years, particularly for thermal insulation or the replacement of the collective heating system
- It influences the contribution to the mandatory work fund, which may be increased
- It provides an indication of the energy trajectory of the building, a criterion increasingly scrutinized by buyers and banks
A well-advanced PPPT reassures as much as a good DPE during a transaction. Conversely, its absence or delay in a concerned co-ownership may signal an unresponsive property manager or tensions among co-owners regarding the financing of works.
What signals to watch to anticipate the future of the market
Rather than seeking a single prediction, keep an eye on a few concrete indicators:
- The ECB’s decisions on key rates, which directly condition the cost of mortgage credit
- The monthly number of sales agreements published by notaries, an early sign of transaction trends
- The average selling times in your geographical area, often more telling than the listed prices
- The evolution of the regulatory framework on thermal sieves and short-term rentals, which redistributes the cards among landlord owners
The real estate market in 2024 did not offer a spectacular turnaround. It laid the groundwork for stabilization, driven by easing credit and hindered by an uncertain economic context. Buyers with solid equity and a clear project found negotiation margins that did not exist two years earlier.
